Ratings Methodology for Small-Business Loans

Our writers and editors evaluate each business loan product on more than 18 factors.

35+ loan products rated

24 lenders

1,000+ data points collected

NerdWallet’s writers and editors evaluate small-business loan products from traditional banks and online lenders. We score each product on factors that matter most to business borrowers. Our star ratings are the weighted average of all those individual scores. NerdWallet’s business relationships have no impact on our star ratings.

How we rate small-business loan products

5.0

Overall score

Small-business lenders that don’t charge an origination fee or prepayment penalty rank higher in this category. We award an extra half-point if the lender offers prepayment discounts.

Transparency (19%)

We review lenders’ websites and practices to determine if it’s possible for borrowers to easily assess whether the business loan is the right option for them. This includes whether information like the loan’s rate, fees and terms are easily accessible. It also includes transparency in terms of qualification requirements, such as minimum personal credit score, time in business and annual revenue.

Underwriting and loan flexibility (15%)

We assess the rigor of lenders’ underwriting practices, including whether they require physical collateral and whether they take out a Uniform Commercial Code (UCC) lien on funded borrowers. We also consider whether the lender offers multiple payment options (e.g. daily, weekly, monthly).

Credit (11%)

Small-business lenders earn high marks in this category if they report timely payments to the commercial credit bureaus. This reporting allows borrowers to establish business credit, which can help them qualify for better rates and terms on future loans.

Application experience (11%)

We consider the overall experience of the small-business owner trying to get a loan, including the ways in which they can apply (e.g. online, over the phone, in person) and the funding speed.

Customer service (11%)

We reward lenders that offer multiple customer support methods (phone, email and live chat), as well as those that provide access to an online dashboard for loan management. We also contact each lender and consider how responsive they are through at least one listed communication channel.

Discretionary (not weighted)

In addition to the factors above, a lender’s rating may be lowered if it has faced governmental regulatory action in the past five years or been accused of predatory business lending practices by a reputable source.

A lender that offers a unique, small-business-friendly feature (outside of the scored categories above) that few others offer may earn a higher score.

Data collection and review process

NerdWallet evaluates more than 35 small-business loan products from reputable banks and online lenders. Our team of small-business writers and editors analyzes more than 1,000 data points across lenders, drawing from company websites, public documents and lender representatives.

We gather and review information regularly to ensure consistency and accuracy. Our team annually audits all loan products and updates loan details and star ratings as soon as changes occur. Final star ratings are presented on a scale of one to five stars, with one star representing “poor” and five stars representing “excellent.”

To help ensure our ratings reflect the real borrower experience, we go beyond publicly available information. We survey business lenders directly about details that matter to small-business owners but may not be easy to find, such as whether lenders report to commercial credit bureaus or offer an online dashboard for loan management. When possible, we start the loan application process online to understand what borrowers must provide and how long the process takes. We also call lenders directly to evaluate their customer service experience.

Additionally, NerdWallet regularly interviews experts at banks, nonprofit and community lending organizations and the U.S. Small Business Administration to better understand lending trends, borrower challenges and the priorities of small-business owners. We also check online channels, such as Reddit, Trustpilot and the Better Business Bureau, to see what borrowers are saying about specific loan products and lending experiences.

Financial institutions we rate

For 2026, NerdWallet’s small-business writers have rated business loan products from the following:

Accion, Altbanq, AltLINE, American Express, Backd, Bank of America, BHG Financial, Bluevine, eLease, Fora Financial, Fundbox, Headway Capital, iBusiness Funding, JR Capital, Kapitus, National Funding, OnDeck, PNC, Quantum Lending Solutions, QuickBridge, Rapid Finance, Triton Capital, Wells Fargo and Truist.

Our editorial team

NerdWallet's business lending content, including our ratings, reviews and recommendations, is overseen by a team of writers and editors who specialize in small-business financing. The team has more than 50 years of combined editorial experience. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict editorial guidelines to ensure unbiased coverage.

Meet our team: