Square Capital: Quick Business Loans for Square Merchants

Small Business, Small Business Loans
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square capital

Square, which started as a small, smartphone-friendly credit card processor in 2009, is becoming a major player in providing financing to small businesses.

Square’s lending arm, Square Capital, began offering merchant cash advances to its customers in 2014. Since then, Square Capital has shifted away from offering MCAs and now partners with Celtic Bank to offer the Square Capital Flex Loan, which has a fixed term. (However, repayment is based on a percentage of your daily sales, which mimics how MCA repayments work. More on that below).

According to the company, Square Capital has facilitated $1.8 billion in merchant cash advances and loans to more than 141,000 small-business customers.

“Square Capital was built specifically for small businesses to improve access to funding to help them grow,” says Dan Mahoney, the communications lead for Square, adding that 84% of borrowers report using the money to help grow their business.

Here’s what you need to know about the Square Capital Flex Loan and how it compares with other small-business financing:


Square Capital loans at a glance


Loan amount$500 to $100,000
Borrowing costsOn average, 10% to 16% of the loan

Read more details
RepaymentFull balance must be repaid within 18 months
Funding timeWithin days

How Square Capital works

How to qualify: Unlike more traditional lenders whose products may be available to any qualified small-business owners, the Square Capital Flex Loan is available only to small businesses that use the Square point-of-sale product.

Square Capital sends pre-qualification loan offers to eligible small businesses that use its POS system. Because Square has access to your transaction and sales histories through the system, it uses your current financial information to determine the loan amount and terms. You can then choose the loan amount that’s right for your business needs.

Want a loan but haven’t received an offer? You can take a short survey that helps Square Capital analyze your business. When determining loan eligibility, the company reviews two key factors: your processing volume — it typically wants to see $10,000 or more in sales a year — and your recent payment transactions.

The company also considers your history with Square, whether you’re an active Square seller and the number and frequency of your payments.

Loan amount: Square Capital offers loans of $500 to $100,000. The average loan size is $6,000, according to the company.

Borrowing costs: Square charges a one-time fee, which averages between 10% and 16% of your loan amount.

Repayment terms: You’ll repay your loan from a fixed percentage of your daily credit card sales — typically 9% to 13% — similar to how a merchant cash advance repayment functions. You pay more when your sales are strong and less when sales are weak. However, the total repayment amount doesn’t change. Repayments are deducted automatically from your Square account.

Square Capital loans must be paid off in full within 18 months of the acceptance date. Any amount unpaid after 18 months will be due in full. Your daily repayments depend on your sales, but you must pay at least one-eighteenth of your initial loan amount every 60 days. Square Capital’s servicing team may contact you if you are close to missing a payment requirement.

You can make additional payments toward your loan and prepay it early without a fee, though Square Capital’s upfront fee means you won’t benefit financially from paying the loan back early.

Payment example: Say you’re offered and accept a $10,000 loan with a repayment option that takes 11% of your daily sales. Here’s a breakdown of the fee and total payback amount, according to the company.

Loan amount$10,000
Fee$1,200, or 12% of loan
Total payback amount$11,200
Percentage of daily sales for repayment11%

In this example, you’d be required to pay back at least $622.22 (one-eighteenth of the loan amount) every 60 days. However, that’s the minimum; Square Capital may reach out to you if you’re at risk of falling behind, because you won’t pay back the loan in full by the end of the term if you’re hitting only the one-eighteenth requirement.

So on a given day, if your sales were $1,000, you’d pay back $110 ($1,000 x 11% daily). If you were able to maintain a similar pace each day, your total loan cost of $11,200 would be paid back in a little more than three months.

Pros and cons of Square Capital loans

PROS

Easy application process: Because Square proactively offers you a loan option, you don’t have to worry about searching and applying for funding. If you accept a Square Capital loan, however, you may be required to submit extra documents to verify your business identity and history.

Upfront information: You’ll know exactly how much you will owe before accepting a financing offer. While your daily payments will vary based on your sales, your daily repayment rate and total amount owed will never change.

No prepayment fee: If you pay off your loan early, you won’t face any prepayment penalties.

CONS

Need to be Square POS customer: To be offered a Square Capital Flex Loan, you have to use one of Square’s POS payment processing tools.

Payments are fixed percentage of daily sales: Similar to the repayment of merchant cash advances, you’ll pay back your Square Capital loans with a fixed percentage of your daily credit card sales. While daily payments could be a benefit for some businesses, they could throw off your business’s cash flow; some small-business owners prefer fixed weekly or monthly payments instead.

Short terms and small borrowing amounts: Square Capital’s maximum borrowing amount is $100,000, which is smaller than loans offered by most lenders, and the average Square Capital loan amount is $6,000. While the low limit is handy for covering everyday expenses or small inventory purchases, it won’t help with big expansions or major growth opportunities. And if you do receive an amount on the higher end, you have only 18 months to pay it back.

Square Capital vs. other sources of financing

Square Capital’s proactive approach to offering financing can be both good and bad for small-business owners. Having a loan offered to you without the hassle of finding and applying for financing is a huge time saver for busy small-business owners. However, it also can encourage them to borrow even if they don’t really need it.

If you’re in the market for a small-business loan, shop around. There are many sources of small business financing and many types of loans, including term loans, lines of credit, invoice financing and Small Business Administration loans. You’ll want to start your search at local banks and credit unions for the best rates, especially if you have an established business with strong finances.

Bank Loans

Small-business loans from your bank or credit union will offer you the best financing rates. However, that process can be long and complicated, making the pre-qualification offers from Square an attractive alternative for busy businesses. Regardless, it’s worthwhile to establish a relationship with your local bank because the cheaper financing it offers will be financially beneficial down the line.

Online Alternative Lenders

Online alternative lenders sprang up during the Great Recession when banks and other traditional lenders weren’t offering financing to small businesses. With looser qualification standards and quick applications, alternative loans are often easier to qualify for, making them an option for borrowers who can’t qualify for a traditional loan. While the Square Capital Flex Loan is technically an online alternative loan, its scope is limited to current users of the Square product.

Merchant Cash Advances

Merchant cash advances and the Square Capital Flex Loan have similar repayment features, but having a specific term length helps to differentiate Square’s product from the high-cost merchant cash advances. MCAs are an advance on your future credit card sales, and you repay that advance with a daily percentage of your credit card sales until the loan is repaid. MCAs don’t have a set time frame for repayment, so you could end up paying them back over years, resulting in an annual percentage rate that can reach into the triple digits. Because your sales fluctuate, so do your daily payments. Though speedy, MCAs are largely unregulated and are a risky financing option.

Business Credit Cards

Business credit cards also offer the opportunity for future financing that the Square Capital Flex Loan does not. You’ll likely have a smaller credit line than with a business line of credit — typically up to $50,000 vs. $1 million-plus — but a credit card is convenient for everyday business purchases. Business credit cards also may offer rewards such as cash back and travel points.

» MORE: Small-business loans vs. business credit cards

Compare Square Capital loans with other options

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 a year and have at least $100,000 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
• $120,000+ annual revenue
• 6+ months in business
• 600+ personal credit score
• $100,000+ annual revenue
• 1+ years in business
Borrow:
$5,000 to $100,000Up to $100,000
APR:
16% to 62%14% 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:
8.24% to 8.95%9% to 40%
Get started at SmartBiz
Get started at StreetShares
For established businesses making more than $60,000 annually, SmartBiz and Lending Club 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 $75,000 or more in annual sales and prefer flexible financing, consider Lending Club's line of credit.
lending_club_logo_new-249x47
smartbiz
Good option for:
• Fast funding
• Flexible financing
• SBA loans
• Low rates
Do you qualify?
• 600+ personal credit score
• $75,000+ annual revenue
• 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:
$5,000 to $300,000
$30,000 to $350,000
APR:
8% to 35%8.5% to 9.21%
Get started at Lending Club
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% 8.24% to 8.95%
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
• $120,000+ annual revenue
• 6+ months in business
• 600+ personal credit score
• $100,000+ annual revenue
• 1+ years in business
Borrow:
$5,000 to $100,000Up to $100,000
APR:
16% to 62%14% 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 $150,000$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 personal loan or a business credit card. 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:
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% 8.24% to 8.95%
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% 8.24% to 8.95% 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 Credibility Capital 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 you want funding quicker, Funding Circle and Credibility Capital are alternatives.
fundingcircle
smartbiz
credibilitycapitallogo
Good option for:
• Profitable businesses
• Large investments
• SBA loans
• Low rates
• Long-term investments
• Growth financing
• Strong-credit borrowers
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

• 650+ personal credit score
• 18+ months in business
• $150,000+ annual revenue
Borrow:
$25,000 to $500,000$30,000 to $350,000 $10,000 to $350,000
APR:
7% to 36% 8.5% to 9.21% 10% to 25%
Get started at Funding Circle
Get started at SmartBiz
Get started at Credibility Capital
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 businesses that are younger and have less revenue, BlueVine is a better bet. If borrowing costs are important to you, StreetShares offers lower APRs than BlueVine.
Street Shares
bluevine
Good option for:
• Fast cash
• Entrepreneurs who are military veterans
• Newer businesses
• Managing cash flow
• Newer businesses
Do you qualify?
• 600+ personal credit score
• 6+ months in business
• $100,000+ annual revenue
• 600+ personal credit score
• 6+ months in business
• $120,000+ in annual revenue

Borrow:
$2,000 to $100,000$5,000 to $100,000
APR:
9% to 40% 16% to 62%
Get Started at StreetShares
Get Started at BlueVine
For newer businesses with steady revenue, a term loan from StreetShares is a good option. If you have at least $100,000 in revenue and have been in business six months or more, you can qualify for StreetShares.
Street Shares
Good option for:
• Fast cash
• Entrepreneurs who are military veterans
• Newer businesses
Do you qualify?
• 600+ credit score
• 6+ months in business
• $100,000+ annual revenue
Borrow:
$2,000 to $100,000
APR:
9% to 40%
Get Started at StreetShares
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 $150,000 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 $150,000
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:

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