SmartBiz Review: An Easier, Faster SBA Loan

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SmartBiz

Cost
Time to funding
Ease of application
  • Loan amount: $30,000 to $350,000.
  • APR: 8% to 8.7%.
  • Loan term: 10 years.
  • Funding: As soon as 7 days but typically several weeks.
  • More: SmartBiz application step by step.
Apply now at SmartBiz

Before you apply for a SmartBiz loan, find out whether you meet the lender’s minimum qualifications.

  • 600+ personal credit score for loans $30,000 to $150,000.
  • 650+ personal credit score for loans over $150,000.
  • 2+ years in business.
  • $50,000+ in annual revenue.
  • Personal guarantee required.
  • No outstanding tax liens.
  • No bankruptcies or foreclosures in last three years.
  • No recent charge-offs or settlements.
  • Must be current on government-related loans.
Do I qualify?

If you want to add a new store branch, hire more employees or even buy your own office building for your growing business, U.S. Small Business Administration loans are a great option for low-cost financing.

SmartBiz offers an easier and quicker way to get an SBA loan than from a traditional bank. SmartBiz’s online platform makes the process less intimidating and cuts the application time significantly, from months to as little as a week. It offers regular SBA 7(a) term loans of up to $350,000. For commercial real estate financing, SmartBiz offers financing of up to $5 million.

But you have to meet the SBA’s stringent requirements, making the federally guaranteed financing tough to obtain.

In this article

Reasons to use SmartBiz

Getting an SBA loan at SmartBiz vs. a traditional bank

Where SmartBiz falls short

Reasons to use SmartBiz

Least expensive financing: It would be tough to beat the low rates of SBA financing from SmartBiz, which range from an annual percentage rate of 8% to 8.7% for regular term loans, and from 5.6% to 6.75% for commercial real estate loans.

SmartBiz is an excellent option for small-business owners looking to keep financing costs down.

Benefit: SmartBiz offers a faster, less stressful way to get an SBA loan, which otherwise typically involves a long, tedious process with a commercial bank.

Drawback: You must have a strong, established business to qualify. And be prepared to upload or send via email lots of documents and files.

Great financing for growth: If your primary goal is to grow your business, getting an SBA loan from SmartBiz is an excellent way to reach that objective. You get the funds you need on manageable terms. Unlike with other online loans, you don’t get stuck with high monthly or daily payments that could eventually cause serious financial headaches.

Great financing for buying commercial real estate: Besides standard term loans, SmartBiz also offers 7(a) SBA-backed commercial real estate financing from $350,000 to $5 million. With low borrowing costs and no balloon payments, these loans are a good option for business owners looking to buy commercial real estate or refinance a commercial real estate loan. SmartBiz commercial real estate loans cannot be used for new construction. The APR for the loan, which has a 25-year term, is 5.6% to 6.75%. Additional fees may apply due to property type and other factors, according to the lender.

For commercial real estate loans, at least 51% of the property you’re buying has to be occupied by and used by your business. SmartBiz says its partner lenders typically require a 15% down payment, although a 10% down payment “with additional collateral” could be acceptable.

There is a prepayment penalty in the first three years of a 25-year commercial real estate loan. You must pay 5% of the loan amount if you pay back the loan in the first year, 3% in the second year and 1% in the third year. There are no prepayment penalties after the third year for the remaining life of the loan.

Minimum qualifications for SmartBiz’s commercial real estate loan:

  • 675+ personal credit score
  • 3+ years in business
  • $250,000+ in annual revenue


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SBA loans: SmartBiz vs. traditional banks

San Francisco-based SmartBiz started in 2009 with the goal of using new financial technology to provide small-business loans quickly and easily. The lender currently has three bank partners designated as SBA preferred lenders, including First Home Bank.

So what is the advantage of going directly to a bank? Getting an SBA loan from a traditional bank would help you save on financing costs. SmartBiz takes a 4% cut from the approved loan to cover “referral and packaging fees” and passes on bank closing costs to the borrower. Those bank closing costs usually add another $317 and would include standard bank fees, according to SmartBiz.

Charges for third-party reports may also apply, such as a fee for a title search for commercial real estate owned by the borrower or an environmental assessment of the borrower’s business.

But applying through SmartBiz could boost your chances of getting approved for an SBA loan. That’s because, as a marketplace for banks offering SBA loans, SmartBiz “gives entrepreneurs the opportunity to quickly be assessed and preapproved,” says Mark Quinn, the SBA district director for Northern California. “It is efficient for the lender and effective for the borrower.”

In fact, SmartBiz fills a need that the SBA has struggled to meet, Quinn says.

“At the smaller dollar amounts — under $350,000 — we’re challenged as an agency to find active lenders because of the cost to process a loan,” he says. “SmartBiz uses technology in a way that allows them to automate much of the process and keep those costs down. The outcome is exactly what we want: more small SBA loans to eligible business owners.”

In fact, SmartBiz was the No. 1 provider of non-Express 7(a) loans under $350,000 for the fiscal year ending Sept. 30, 2016, according to the SBA.


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Where SmartBiz falls short

Not for businesses with wobbly finances: You don’t need a really high personal credit score to get a SmartBiz loan, but it should be good. Borrowers average 705, according to the company. The typical SmartBiz borrower has 10 years in business and annual revenue of $1 million.

Revenue requirements may be too steep for new businesses: SmartBiz uses “key indicators” to evaluate whether you’re a good fit for a loan: For loans smaller than $150,000, you should have an annual revenue of at least $120,000. For loans over $150,000, you should have an annual revenue of about $300,000.

Your business also needs to be healthy, with no bankruptcies and a clean record when it comes to meeting debt obligations.

You still have to get the SBA’s OK: SmartBiz has found a way to speed up the process of applying and getting approved for an SBA loan. But you still need to meet the SBA’s requirements, which can be intimidating. The SBA even has a list of the types of small businesses that shouldn’t bother applying; they include businesses involved in religious teaching, life insurance, mortgage servicing and real estate development.

The process can be long and tedious: Even though SmartBiz has streamlined the SBA loan process, it could still take more than a week or longer to be approved, depending on how quickly you’d be able to send at least 10 required documents.

Here are 10 documents to gather before applying to SmartBiz:

  • Business tax returns (last two years)
  • Personal tax returns (last two years)
  • Evidence of business property insurance
  • Evidence of general liability insurance, such as a homeowner’s insurance policy
  • Business entity certifications (such as articles of incorporation)
  • Business assets list
  • Corporate resolution to borrow
  • Photo of driver’s license
  • Deeds, title policies or lease agreements for all real estate owned or used by the business. Lease agreement would include a subordination release from your landlord
  • Home mortgage statement
List of SmartBiz documents

Although SmartBiz is a good option for established businesses, “it doesn’t work for startups under two years in business,” the SBA’s Quinn says.

You're ready to get your new business off the ground and may already have discovered that finding financing can be a challenge. We've rounded up some strategies to help you get your company launched.
Because you have strong personal credit, you could qualify for a line of credit through BlueVine or OnDeck that would help you meet daily expenses and maintain inventory. If you’ve been in business at least nine months and have at least $75,000 in annual revenue, consider OnDeck, whose maximum APR is lower than BlueVine’s. If your annual revenue starts at $60,000, BlueVine is a better bet. BlueVine also offers invoice factoring, a type of financing that advances you cash based on your unpaid customer invoices.
bluevine
ondeck
Good option for:
• Businesses with steady revenue• Fast cash
Do you qualify?
• 600+ personal credit score
• $60,000+ annual revenue
• 6+ months in business
• 600+ personal credit score
• $75,000+ annual revenue
• 9+ months in business
Borrow:
$5,000 to $100,000Up to $100,000
APR:
16% to 62%13% to 40%
Get started at BlueVine
Get started at OnDeck
Microloans and personal loans are good options to finance your inventory and daily expenses if you’re an established business but make less than $25,000 in revenue. Microloans through nonprofits and the SBA usually have low APR and manageable payment terms, but you'd have to deal with stringent requirements. Personal loans are easier to access, but the APR can be higher than with microloans.
  For personal loans: For microloans:
With strong personal credit and an established business, you may be eligible for an SBA loan, which offers low APRs and longer terms. SmartBiz is a good option if you have at least $50,000 in annual revenue. For smaller loans (under $100,000) and less stringent requirements, StreetShares offers a line of credit, a good alternative, especially for military veterans. You need $25,000 in annual revenue to qualify for StreetShares.
smartbiz
Street Shares
Good option for:
• SBA loans
• Low rates
• Newer businesses
• U.S. military veterans
Do you qualify?
• 600+ personal credit score for loans $30,000 to $150,000
• 650+ personal credit score for loans over $150,000
• $50,000+ annual revenue
• 2+ years in business
• 600+ personal credit score
• $25,000+ annual revenue
• 1+ years in business
Borrow:
$30,000 to $350,000$5,000 to $100,000
APR:
8% to 8.7%9% to 40%
Get started at SmartBiz
Get started at StreetShares
For established businesses making more than $50,000 annually, SmartBiz and Credibility Capital are solid choices. If you want the lowest rates and longer repayment terms, SmartBiz is the best option because it offers SBA loans. If you have at least $100,000 in annual sales and want funding fast, consider Credibility Capital.
credibilitycapitallogo
smartbiz
Good option for:
• Fast funding
• Short-term financing
• SBA loans
• Low rates
Do you qualify?
• 650+ personal credit score
• $100,000+ annual revenue
• 1+ years in business
• 600+ personal credit score for loans $30,000 to $150,000
• 650+ personal credit score for loans over $150,000
• $50,000+ annual revenue
• 2+ years in business
Borrow:
$10,000 to $350,000
$30,000 to $350,000
APR:
10% to 25%8% to 8.7%
Get started at Credibility Capital
Get started at SmartBiz
For established businesses with annual sales of $150,000 or more, SmartBiz and Funding Circle offer good financing options. You’ll get lower APRs with SmartBiz, which offers SBA loans, but Funding Circle has a less rigorous and shorter application process. Funding Circle also has a higher maximum loan amount of $500,000 compared with SmartBiz's $350,000.
fundingcircle
smartbiz
Good option for:
• Profitable businesses
• Fast funding
• SBA loans
• Low rates
Do you qualify?
• 620+ personal credit score
• No minimum annual revenue required
• 2+ years in business
• 600+ personal credit score for loans $30,000 to $150,000
• 650+ personal credit score for loans over $150,000
• $50,000+ annual revenue
• 2+ years in business
Borrow:
$25,000 to $500,000 $30,000 to $350,000
APR:
7% to 36% 8% to 8.7%
Get started at Funding Circle
Get started at SmartBiz
bluevine

Line of credit

bluevine

Invoice factoring

Good option for:
• Good for businesses less than a year old
• Low minimum revenue requirement
• Fast cash
• Good for businesses with larger invoices
• Fast cash
• Low minimum personal score requirement
Do you qualify?
• 600+ personal credit score
• $60,000+ annual revenue
• 6+ months in business
• 530+ personal credit score
• $120,000+ annual revenue
• 3+ months in business
Borrow:
Up to $100,000 Up to $2 million
APR:
16% to 62% 17% to 60%
Get started at BlueVine
Get started at BlueVine
For young businesses that deal with a lot of customer invoices, consider taking a cash advance against those outstanding receivables. Both BlueVine and Fundbox offer the financing option commonly known as invoice factoring. If you have at least $120,000 in annual revenue, BlueVine offers up to 85% of your total invoices, up to $2 million. Fundbox does not require a minimum revenue amount, but you must have at least six months of activity with a compatible online accounting software such as QuickBooks. Fundbox advances you 100% of your total invoice but only up to $100,000.
bluevine

fundbox

Good option for:
• Businesses with strong-credit customers
• Addressing cash-flow gaps
• Businesses that need cash for short-term needs
• Financing small invoice amounts
Do you qualify?
• 530+ personal credit score
• $120,000+ annual revenue
• 3 months+ in business
• No minimum personal credit score
• No minimum revenue
• Must have online accounting software that can link to Fundbox (such as QuickBooks, FreshBooks, Harvest)
Borrow:
$20,000 to $2 million $1,000 to $100,000
APR:
7% to 60% 16.4% to 76.5%
Get started at BlueVine
Get started at Fundbox
Because your personal credit score is in the 600s, you may qualify for a line of credit from BlueVine or OnDeck to help meet daily expenses and maintain inventory. OnDeck offers a higher credit limit and lower APRs than BlueVine. For businesses with at least nine months in operation and $75,000 in annual revenue, OnDeck is a good option. If you have less time in business and less revenue, consider BlueVine.
bluevine
ondeck
Good option for:
• Businesses with steady revenue• Fast cash
Do you qualify?
• 600+ personal credit score
• $60,000+ annual revenue
• 6+ months in business
• 600+ personal credit score
• $75,000+ annual revenue
• 9+ months in business
Borrow:
$5,000 to $100,000Up to $100,000
APR:
16% to 62%13% to 40%
Get started at BlueVine
Get started at OnDeck
Because you deal with a lot of unpaid customer invoices, consider BlueVine and Fundbox financing to help meet everyday expenses. They each provide a cash advance against outstanding invoices. BlueVine has a higher cash-advance cap of $2 million, compared with Fundbox’s $100,000. BlueVine is a good bet if you have at least $120,000 in annual revenue and your customers have strong credit. If you’re a young business with limited revenue, consider Fundbox, which does not require a minimum revenue or personal credit score. You must, however, have at least six months of activity in an online accounting software such as QuickBooks to qualify for Fundbox.
bluevine

fundbox

Good option for:
• Businesses with strong-credit customers
• Addressing cash-flow gaps
• Businesses that need cash for short-term needs
• Financing small invoice amounts
Do you qualify?
• 530+ personal credit score
• $120,000+ annual revenue
• 3 months+ in business
• No minimum personal credit score
• No minimum revenue
• Must have online accounting software that can link to Fundbox (such as QuickBooks, FreshBooks, Harvest)
Borrow:
$20,000 to $2 million $1,000 to $100,000
APR:
7% to 60% 16.4% to 76.5%
Get started at BlueVine
Get started at Fundbox
OnDeck and Kabbage are good options when you need cash for everyday expenses and inventory but your personal credit score still needs some work. If you have at least $100,000 in annual revenue and a personal credit score of 500 or more, you may qualify for OnDeck’s term loan. For businesses with lower revenue, consider Kabbage, which also does not require a minimum personal credit score. You’ll get high APRs with both lenders. You should turn to these options mainly for short-term needs or emergencies and only if you're sure you have the cash flow to cover the financing costs.
kabbage
ondeck
Good option for:
• Fast cash
• Short-term financing
• Fast cash
• Large purchases
Do you qualify?
• No minimum personal credit score required
• 1+ years in business
• $50,000+ annual revenue
• 500+ personal credit score
• $100,000+ annual revenue
• 1+ years in business
Borrow:
$2,000 to $100,000$5,000 to $500,000
APR:
24% to 99% 9% to 99%
Get started at Kabbage
Get started at OnDeck
Because you're just starting out and your personal credit score is below 600, your best bet is microloans through nonprofit lenders or the U.S. Small Business Administration. The downside is these are "micro" amounts of money, usually no more than $50,000. However, many microlenders help businesses grow and establish better credit. SBA microloans generally have an APR of 8% to 8.5% and manageable repayment terms. Successfully repaying microloans will boost your credit score and make you eligible for bigger financing.
For microloans:
When you have strong personal credit and a young business with a lot of unpaid customer invoices, BlueVine and Fundbox are good financing options. Both offer invoice factoring at similar costs. Where they differ: minimum revenue and minimum credit score. With BlueVine, you need at least $120,000 in revenue and a minimum 530 personal credit score. Fundbox does not require a minimum revenue or credit score; the lender does require at least six months of activity in a compatible online accounting software.
bluevine
fundbox
Good option for:

• Businesses with strong-credit customers
• Newer businesses
• Fast cash
• Financing smaller invoices
Do you qualify?
• 530+ personal credit score
• 3+ months in business
• $120,000+ annual revenue
• No minimum credit score required
• No minimum annual revenue required
• Must use online accounting software such as QuickBooks or FreshBooks
Borrow:
$20,000 to $2 million$1,000 to $100,000
APR:
17% to 60%16.4% to 76.5%
Get started at BlueVine
Get started at Fundbox
As a young entrepreneur with strong personal credit, you may find it easier to qualify for a line of credit than a term loan. If you have $75,000 in annual revenue and at least nine months in business, OnDeck offers a business line of credit of up to $100,000. Personal loans and business credit cards are also decent options for startups because approval is based on personal credit score rather than business history. The amount you can finance is typically smaller than with a term loan, however, and you need good credit to qualify. Keep in mind that failure to repay can ruin your personal credit.
For personal loans:
For business credit cards:
ondeck
Good option for:
• Small investments
• Managing cash flow
• Fast cash

Do you qualify?
• 600+ personal credit score
• 9+ months in business
• $75,000+ annual revenue

Borrow:
Up to $100,000
APR:
13% to 40%
Get started at OnDeck
Because you have strong credit but your revenue doesn’t quite meet the requirements of most online lenders, consider Fundbox or a business credit card. Business credit cards are a solid option for ongoing working capital and provide quick access to cash, spending rewards and sign-up bonuses. If your business has unpaid customer invoices, you can take a cash advance against those invoices through Fundbox, although you’ll likely pay a higher APR than you would with a business credit card.
For business credit cards:
fundbox
Good option for:
• B2B companies with unpaid customer invoices
• Working capital
• Fast cash

Do you qualify?
• No minimum personal credit score required
• No minimum annual revenue required
• Must use online accounting software that can link to Fundbox (such as QuickBooks, FreshBooks, Harvest).
Borrow:
$1,000 to $100,000
APR:
16.4% to 76.5%
Get started at Fundbox
For young businesses building revenue, StreetShares is a good bet for financing new equipment or an expansion. Your strong personal credit and revenue of at least $25,000 qualify you for the lender, which serves a variety of borrowers but is an especially good option for U.S. military veterans.

Street Shares
Good option for:
• Fast cash
• Newer businesses
• Entrepreneurs who are military veterans
Do you qualify?
• 600+ credit score
• 1+ years in business
• $25,000+ annual revenue
Borrow:
$2,000 to $100,000
APR:
9% to 40%
Get started at StreetShares
With a strong personal credit score and at least one year in business, you can turn to StreetShares and OnDeck for equipment and expansion financing. StreetShares is better if you’re seeking a smaller amount of financing: You just need $25,000 in annual revenue to qualify for its term loan, which maxes out at $100,000. If you have at least $100,000 in revenue, OnDeck, with loans up to $500,000, is better suited for more mature businesses seeking larger amounts of financing.
Street Shares
ondeck
Good option for:

• Small investments
• Entrepreneurs who are military veterans


• Large investments
• Fast cash
Do you qualify?
• 600+ credit score
• 1+ years in business
• $25,000+ annual revenue

• 500+ personal credit score
• 1+ years in business
• $100,000+ in annual revenue

Borrow:
$2,000 to $100,000 $5,000 to $500,000
APR:
9% to 40% 9% to 99%
Get started at StreetShares
Get started at OnDeck
Street Shares
ondeck
Good option for:
• Fast cash
• Entrepreneurs who are military veterans
• Newer businesses
• Fast cash
• Expansion
Do you qualify?
• 600+ credit score
• 1+ years in business
• $25,000+ annual revenue
• 500+ credit score
• 1+ years in business
• $100,000+ in annual revenue
Borrow:
$2,000 to $100,000 $5,000 to $500,000
APR:
9% to 40% 9% to 99%
Get Started at StreetShares
Get Started at OnDeck
Since you have strong personal credit but are still building revenue, you can turn to microloans or personal loans for financing. Microloans are designed especially to help underserved entrepreneurs launch and grow their businesses, but the loans are small and can carry APRs in the low teens. With strong credit, personal loans are another option, but funding typically tops out at $35,000.
For personal loans:
For microloans:
SmartBiz and StreetShares are good options for entrepreneurs with strong personal credit and established businesses. SmartBiz provides SBA loans with the lowest APR and longest repayment terms among online lenders. But since it’s an SBA loan, the application process will involve a lot of documents. If you want funding faster, StreetShares is an alternative. StreetShares, however, has a maximum borrowing limit of $100,000, a higher APR and shorter repayment terms than SmartBiz.
Street Shares
smartbiz
Good option for:
• Fast cash
• Newer businesses
• Entrepreneurs who are military veterans
• SBA loans
• Large investments
• Low rates
Do you qualify?
• 600+ personal credit score
• 1+ years in business
• $25,000+ annual revenue
• 600+ personal credit score for loans $30,000 to $150,000
• 650+ personal credit score for loans over $150,000
• 2+ years in business
• $50,000+ annual revenue

Borrow:
$2,000 to $100,000$30,000 to $350,000
APR:
9% to 40% 8% to 8.7%
Get started at StreetShares
Get started at SmartBiz
With your strong personal credit and steady revenue, Lending Club, SmartBiz and OnDeck are good choices for expansion or refinancing. If you want the lowest rates, consider SmartBiz, which provides SBA loans. For big investments, OnDeck has the highest loan limit -- $500,000 -- but the loans will likely cost you more. Lending Club is a middle-ground option, with lower APR than OnDeck and easier qualifications than SmartBiz.
lending_club_logo_new-249x47
smartbiz
ondeck
Good option for:
• Fast cash
• Expansion
• SBA loans
• Low rates
• Businesses that want longer repayment terms
• Fast cash
• Short-term expansion
• Large investments
Do you qualify?
• 600+ personal credit score
• 2+ years in business
• $75,000+ annual revenue
• 600+ personal credit score for loans $30,000 to $150,000
• 650+ personal credit score for loans over $150,000
• 2+ years in business
• $50,000+ annual revenue

• 500+ personal credit score
• 1+ year in business
• $100,000+ annual revenue
Borrow:
$5,000 to $300,000$30,000 to $350,000 $5,000 to $500,000
APR:
8% to 35% 8% to 8.7% 9% to 99%
Get started at Lending Club
Get started at SmartBiz
Get started at OnDeck
Since your business is established and your revenue is solid, Funding Circle, SmartBiz and Bond Street are good financing options. SmartBiz, with loans up to $350,000, has low-rate SBA loans, but the application and funding process can take several weeks to a few months. If want funding quicker, Funding Circle and Bond Street are alternatives. Bond Street has the highest borrowing maximum at $1 million.
fundingcircle
smartbiz
Good option for:
• Profitable businesses
• Large investments
• SBA loans
• Low rates
• Long-term investments
• Growth financing
• Businesses with strong cash flow
Do you qualify?
• 620+ personal credit score
• 2+ years in business
• No minimum annual revenue required
• 600+ personal credit score for loans $30,000 to $150,000
• 650+ personal credit score for loans over $150,000
• 2+ years in business
• $50,000+ annual revenue

• 640+ personal credit score
• 2+ years in business
• $200,000+ annual revenue
Borrow:
$25,000 to $500,000$30,000 to $350,000 $10,000 to $1 million
APR:
7% to 36% 8% to 8.7% 8% to 25%
Get started at Funding Circle
Get started at SmartBiz
Get started at Bond Street
Since you've been in business more than a year and have decent credit, you may qualify for funding from StreetShares or OnDeck. If you have at least $25,000 in revenue, StreetShares offers a loan or line of credit up to $100,000. If you want more funding, OnDeck has term loans of up to $500,000. OnDeck’s loans, however, can be costlier, with APRs as high as 98%; StreetShares’ funding has a maximum 40% APR.
Street Shares
ondeck
Good option for:
• Fast cash
• Entrepreneurs who are military veterans
• Newer businesses
• Fast cash
• Expansion
Do you qualify?
• 600+ credit score
• 1+ years in business
• $25,000+ annual revenue
• 500+ credit score
• 1+ years in business
• $100,000+ in annual revenue
Borrow:
$2,000 to $100,000 $5,000 to $500,000
APR:
9% to 40% 9% to 99%
Get Started at StreetShares
Get Started at OnDeck
Since you have unpaid customer invoices, you can turn to BlueVine and Fundbox for a cash advance against those receivables. BlueVine is a good choice if you have credit-strong clients and large outstanding payments up to $2 million. If you’re looking to finance a smaller amount, Fundbox covers 100% of your unpaid invoices up to $100,000. To qualify, you need at least six months of activity in a compatible online accounting software such as QuickBooks.
bluevine
fundbox
Good option for:

• Businesses with strong-credit customers
• Newer businesses
• Fast cash
• Financing smaller invoices
Do you qualify?
• 530+ personal credit score
• 3+ months in business
• $120,000+ annual revenue
• No minimum credit score required
• No minimum annual revenue required
• Must use online accounting software such as QuickBooks or FreshBooks
Borrow:
$20,000 to $2 million$1,000 to $100,000
APR:
17% to 60%16.4% to 76.5%
Get started at BlueVine
Get started at Fundbox
Since your new company earns less than $25,000, microloans and personal loans are good options for necessary capital. Microloans through nonprofits and the SBA usually have low APRs and manageable payment terms. If your credit is in the high 600s, you can opt for a personal loan, though they often aren't available for more than $35,000 and tend to come with higher APRs than microloans.
For personal loans:
For microloans:
If your company is on track to make more than $25,000 in annual revenue but you’ve been open less than a year, you can turn to microloans and personal loans for financing. Microloans come in small amounts and have low APRs and manageable repayment terms. If your credit is in the high 600s, you can opt for a personal loan, though they often aren't available for more than $35,000.
For personal loans:
For microloans:
A term loan is ideal for expansion and buying equipment, so consider StreetShares if you have at least $100,000 in revenue and six months in business. For young businesses, however, it may be easier to qualify for a line of credit. If your company makes at least $75,000 in annual sales and has been operating for at least nine months, OnDeck is a good option. For businesses that are younger and have less revenue, BlueVine is a better bet. If borrowing costs are important to you, OnDeck offers lower APRs than BlueVine.
Street Shares
ondeck
bluevine
Good option for:
• Fast cash
• Entrepreneurs who are military veterans
• Newer businesses
• Fast cash
• Managing cash flow
• Managing cash flow
• Newer businesses
Do you qualify?
• 600+ personal credit score
• 6+ months in business
• $100,000+ annual revenue
• 600+ personal credit score
• 9+ months in business
• $75,000+ in annual revenue

• 600+ personal credit score
• 6+ months in business
• $60,000+ in annual revenue

Borrow:
$2,000 to $100,000Up to $100,000$5,000 to $100,000
APR:
9% to 40% 13% to 40% 16% to 62%
Get Started at StreetShares
Get Started at OnDeck
Get Started at BlueVine
For newer businesses with steady revenue, a term loan from StreetShares and a line of credit from OnDeck are good options, depending on your sales level. If you have at least $100,000 in revenue and have been in business six months or more, you can qualify for StreetShares. On the other hand, if your business generates less revenue but has been in business for at least nine months, OnDeck is a better option.
Street Shares
ondeck
Good option for:
• Fast cash
• Entrepreneurs who are military veterans
• Newer businesses
• Fast cash
• Large investments
Do you qualify?
• 600+ credit score
• 6+ months in business
• $100,000+ annual revenue
• 600+ credit score
• 9+ months in business
• $75,000+ in annual revenue

Borrow:
$2,000 to $100,000Up to $100,000
APR:
9% to 40% 13% to 40%
Get Started at StreetShares
Get Started at OnDeck
Since your business has steady revenue and has been operating for more than a year, consider OnDeck and Kabbage. If your personal credit score is at least 500, OnDeck offers term loans up to $500,000, which is an attractive option for large expansion projects or buying expensive equipment. If you’re looking for short-term financing or need a smaller amount, consider Kabbage, which does not require a minimum credit score. Kabbage offers only six- or 12-month financing of up to $100,000 at high borrowing costs.
ondeck
kabbage
Good option for:
• Large investments
• Businesses with consistent sales
• Smaller investments
• Businesses with consistent cash flow
Do you qualify?
• 500+ credit score
• 1+ years in business
• $100,000+ annual revenue
• No minimum credit requirement
• 1+ years in business
• $50,000+ in annual revenue
Borrow:
$5,000 to $500,000 $2,000 to $100,000
APR:
9% to 99%
24% to 99% APR
Get Started at OnDeck
Get Started at Kabbage
Since you have unpaid customer invoices, you can turn to BlueVine and Fundbox for a cash advance against those receivables. If you make at least $120,000 in annual revenue, BlueVine will cover 85% of invoices up to $2 million. BlueVine is a good choice if you have credit-strong clients and large outstanding payments. If you’re looking to finance a smaller amount, Fundbox covers 100% of your unpaid invoices up to $100,000. To qualify, you need at least six months of activity in a compatible online accounting software such as QuickBooks.
bluevine
fundbox
Good option for:

• Businesses with strong-credit customers
• Newer businesses
• Fast cash
• Financing smaller invoices
Do you qualify?
• 530+ personal credit score
• 3+ months in business
• $120,000+ annual revenue
• No minimum credit score required
• No minimum annual revenue required
• Must use online accounting software such as QuickBooks or FreshBooks
Borrow:
$20,000 to $2 million$1,000 to $100,000
APR:
17% to 60%16.4% to 76.5%
Get started at BlueVine
Get started at Fundbox
Because you're just starting out and your personal credit score is below 600, your best bet is microloans through nonprofit lenders or the Small Business Administration. The downside is that these are "micro" amounts of money, usually no more than $50,000. Many microlenders, however, help businesses grow and establish better credit. SBA microloans generally have APRs of 8% to 8.5% with manageable repayment terms. Successfully repaying microloans will boost your credit score and make you eligible for bigger financing.
For microloans:

 

Benjamin Pimentel is a staff writer at NerdWallet, a personal finance website. Email: bpimentel@nerdwallet.com. Twitter: @benpimentel

Updated March 3, 2017.