Online small business loans for you
The government-guaranteed business loan program works with banks to offer low interest rates and long-term repayment. SBA loans offer low rates and long repayment terms. But the process is time consuming and the requirements are strict. Only those with great personal credit, strong business finances and the bandwidth to wait for funding should apply. - Loan amounts: $30,000 to $5 million - APR range: 7% to 8% - Good for: large one-time investments, purchasing real estate or equipment, buying existing businesses, refinancing debt
Online lenders offer term loans of up to $500,000. For a short-term loan, the repayment period typically ranges from six to 12 months, while a long-term loan’s repayment can extend up to 10 years or longer in some cases. - APR range: 7% to 98% - Good for: large one-time investments
A business line of credit provides you with access to flexible cash. Lenders give you access to a specific amount of credit (say, $100,000), but you don’t make payments or get charged interest until you tap into the funds. - Credit line range: $2,000 to $500,000 - APR range: 9% to 108% - Good for: managing cash flow, handling unexpected expenses and financing short-term business needs.
Invoice factoring lets your small business turn its invoices (the money owed by customers that has yet to be paid) into immediate cash. You sell the invoices to a factoring company, which then gets paid when it collects from your customers. If you’d rather maintain control over your invoices, invoice financing is an alternative to factoring. - Financing amounts: $500 to $500,000 - APR range: 11% to 64% - Good for: managing cash flow, short-term financing
Why these lenders?
Only about 1 in 5 businesses that apply for a loan from a big bank are approved. To solve that problem, we work with online lenders that specialize in making the loan application process simple. Plus, they're faster and offer more competitive rates than many banks.
How does NerdWallet make money?
We make money when you get the funding you need. Some of the loan providers on our site pay us a referral fee when customers like you get approved for a loan. We always try to find the best option for you, even if we don't have a paying relationship with that lender. We also actively turn down offers from lenders that we feel seek to take advantage of small business owners. Read more about how we make money.