Best Small Business Loans Of January in 2024
Best Small Business Loans Of January in 2024, Small business loans let owners who qualify borrow money to pay for purchases and running costs that are related to their business. The best small business loans can help you get the money your company needs to grow or start up.
OnDeck
Since it started in 2006, OnDeck has been a top provider of business loans, giving both term loans and lines of credit. So far, the company has given small businesses $14 billion in loans.
We chose OnDeck because it offers a range of business loans and can fund them the same day. OnDeck lets you get a term loan for $5,000 to $250,000 with up to 24 months to pay it back. It also has a line of credit with a credit cap of $6,000 to $100,000. The repayment term is 12 months and starts over after each withdrawal.
Keep in mind that OnDeck does not lend money to companies in Nevada, North Dakota, or South Dakota. Also, even though it lends to more than 700 businesses, it can’t help all of them.
Eligibility: Prospective borrowers must have a minimum personal credit score of 625 to qualify for an OnDeck term loan or line of credit. Additionally, their business must have been in operation for at least one year and have annual gross revenue of at least $100,000. Applicants must also have an open business checking account.
Turnaround time: You can apply and receive a decision from OnDeck on the same day. What’s more, approved borrowers can have their funds in their bank account as early as the day they’re approved.
Lendio
Lendio is an online marketplace for business loans that matches people who want to borrow money with online lenders who are not banks. A business owner can get in touch with over 75 lenders by filling out a single application. Lendio has helped small business owners across the country get more than $12 billion in loans since it started.
People who want to borrow money may see Lendio as a one-stop shop. You can get business loans, lines of credit, SBA loans, financing for tools, merchant cash advances (MCAs), commercial mortgages, invoice factoring, and loans to buy a business. But because Lendio is not a lender but a marketplace, it doesn’t list exact terms. You will instead be able to talk to its loan partners, and it will help you find the best deal for your needs.
Eligibility: Minimum credit score requirements vary by loan product. You can qualify for financing with a score as low as 560; however, we recommend scores of at least 680 to receive the most favorable terms. Additionally, your business should have been in operation for at least six months to one year, depending on the type of loan you apply for.
Funding time: Applying through Lendio takes 15 minutes. After you review your offers and are approved by your lender, you can receive your funds in as little as 24 hours.
QuickBridge
QuickBridge helps business people all over the country get small loans. It’s easy to apply, and you could get the money within 24 hours, but you need good to great credit to be eligible.
A factor rate is used to show the interest on QuickBridge loans. To find out how much it will cost to borrow money, increase the amount you want to borrow by the factor rate. Let’s say you borrow $30,000. If the factor rate is 1.11, you will end up owing $33,300, which includes $3,300 in interest. The interest rate on a six-month loan would be 22%, but that doesn’t include any fees the company may add.
Eligibility: Business owners need fair to excellent credit to qualify for a QuickBridge loan. On the FICO score scale, fair credit is considered to be at least 580. However, we recommend a score of at least 600. Additionally, your business must be in operation for at least six months and have a minimum annual revenue of $250,000 to qualify.
Turnaround time: QuickBridge provides as quick as 24 hours.
American Express® Business Line of Credit
The American Express® Business Line of Credit (formerly Kabbage from American Express and Kabbage FundingTM) is the best thing about American Express Business BlueprintTM. It lets business owners get loans from $2,000 to $250,000. Payment terms range from six to twenty-four months.
How to get credit Customers have to pay a loan fee every month that they have a debt. For six-month loans, the total monthly fees range from 3% to 9%. For 12-month loans, they range from 6% to 18%, for 18-month loans from 9% to 27%, and for 24-month loans from 12% to 18%.
American Express company Blueprint offers more than just a line of credit. It also has other tools that can help small company owners, such as a mobile app that gives detailed information about cash flow.
Eligibility: To be eligible for financing through American Express Business Blueprint, applicants must have a minimum personal credit score of 660 FICO at the time of application, have started your business at least a year ago and have a valid business checking account. Applicants should have an average monthly revenue of at least $3,000. All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
Funding time: Once you complete your loan application and sign the loan agreement, funds are sent to your verified bank account. Funds can take up to three business days to appear in your account, depending on your bank.
BlueVine
BlueVine is a financial technology company that helps small businesses across the country get the money they need. Business lines of credit and bank accounts are what it does best. BlueVine no longer uses invoice factoring as a way to get money as of December 2021.
Small business owners who want to use a line of credit as needed can get anywhere from $6,000 to $250,000 in funds. BlueVine lets you choose between two ways to pay: Flex 6 or Flex 12. People who choose Flex 6 pay once a week for 26 weeks, while people who choose Flex 12 pay once a month for 12 months. Also, if you pay your Flex 6 bill on time for 45 days and your Flex 12 bill on time for 90 days, you may be able to get your credit line raised.
BlueVine’s line of credit also has fees that are due every week or month. For line of credit draws, the standard rate is 1.7% per week or 7% per month. You can get BlueVine’s line of credit in most U.S. states, but not in North and South Dakota, Puerto Rico, or any U.S. regions.
Eligibility: Eligibility varies on the specific program a business owner chooses.
Flex 6:
- Minimum personal credit score of 625
- Must have been in business for at least 24 months
- $40,000 per month in revenue or $480,000 annually
- Your business must be a corporation or LLC
- No bankruptcies within the last three years
Flex 12:
- Minimum personal credit score of 650
- Must have been in business for at least three years
- $80,000 per month in revenue or $960,000 annually
- Your business must be a corporation or LLC
Turnaround time: After you submit your application, you can receive a decision in as quickly as five minutes. If approved, you’ll receive your funds in your bank account within a few hours if you choose its $15 bank wire option. Choose its free ACH transfer option, and you’ll receive your funds within one to three business days.
National Funding
National Funding gives working capital loans to small businesses for $10,000 to $500,000. The loans have terms of four months to two years and can be paid back daily or weekly. People who borrow money can use it for anything that needs working capital, like paying employees, promotion, taxes, and more. National Funding also offers equipment financing up to $150,000, but people who want to use this way of financing must have a credit score of at least 575.
Unlike most business lenders, National Funding gives savings for paying off loans early. People who get a small business loan and pay off the whole balance within the first 100 days of the contract will instantly get a 7% discount off the whole balance. Customers who borrow money to buy equipment and pay off the entire balance early, at any point during the term, will instantly get a 6% discount off the entire balance.
Eligibility: National Funding recommends a minimum credit score of 600 to qualify for its equipment financing. Your business must also have been in operation for at least six months. National Funding requires minimum gross annual sales of $250,000.
Turnaround time: Most of National Funding’s loans are disbursed within 24 hours of approval. However, this is subject to receipt of required documentation, underwriting guidelines and processing time by your bank.
Fundbox
Fundbox is a business lending tool powered by AI that makes the process of applying, getting approved, and getting the money faster. It gives you answers in three minutes and money as soon as the next business day.
Fundbox gives people who want to borrow money for their businesses two choices. People who own businesses can get rolling business lines of credit for up to $150,000, with 12 or 24 weeks to pay them back. As you pay off your line of credit, the amount of credit you can use goes back up.
Eligibility: Applicants must have a minimum personal credit score of 600 to qualify for financing through Fundbox. The applicant’s business must be in operation for at least six months, making it a possible option for startups. However, businesses must have at least $100,000 in annual revenue.
Funding time: If you’re getting a line of credit, your funds transfer to your bank account as soon as the next business day.
Funding Circle
Funding Circle is a private lender that has been giving small business loans since 2010. It has given loans worth $20.2 billion to 135,000 businesses in 700 different fields. We picked Funding Circle because it offers quick, low-cost loans with an easy application process. In as little as 48 hours, we could get the money. People who want to borrow money have three choices: an SBA loan, a business term loan, or a line of credit.
You can get a term loan from Funding Circle for anywhere from $25,000 to $500,000. You have between six months and five years to pay it back. You can get credit lines of $6,000 to $100,000 if you ask for a business line of credit. Funding Circle doesn’t say how to pay back its line of credit, though. You can also get an SBA loan from Funding Circle. The loans range from $25,000 to $500,000 and have terms of up to 10 years.
One big problem with Funding Circle is that each loan comes with a one-time application fee that can be anywhere from 3.49% to 6.99% of the loan amount.
Eligibility: The minimum qualifications for a loan through Funding Circle are:
- Two years in business
- Minimum personal credit score of 660
- No personal bankruptcies amongst the business owners within the last seven years
- Not available in Nevada, due to state lending regulations
SBA loans, however, require two years in business, a minimum credit score of 650, a minimum annual revenue of at least $400,000, no current federal tax liens and that your business operates in one of the SBA’s eligible industries.
Turnaround time: Depending on the financing method you apply for, you can receive your funds within two to three days. However, SBA loans may take several weeks due to long underwriting turnaround times, which typically take up to three weeks.
Biz2Credit
Biz2Credit is a site for getting loans for businesses. It offers three types of loans, from $25,000 to $500,000. These are term loans, working capital loans, and commercial real estate (CRE) loans. It doesn’t take long to apply, and you should hear back within 24 hours, based on the type of funding.
Working capital loans from $25,000 to $2 million and term loans from $25,000 to $500,000. can be found through Biz2Credit. When you get working capital financing, you pay it back with daily, weekly, or bimonthly payments. When you get a term loan, you pay it back with weekly, bimonthly, or monthly payments over the course of 12 to 36 months. Biz2Credit also offers CRE loans with interest-only terms that range from $25,000 to $2 million and have terms of 12 to 36 months. Monthly payments are needed.
If Biz2Credit can’t offer a financial product, it may show qualified potential borrowers other choices from a third party. But Biz2Credit says, “in the vast majority of cases, [it] will make a financing decision without consulting with anyone else.”
Eligibility: To qualify for working capital financing, applicants must have a minimum personal credit score of 575, have been operating their business for at least six months and have annual revenue greater than $100,000. Term loans, on the other hand, require a minimum score of 660, 18 months in business and annual revenue greater than $250,000. CRE loans share the same minimum requirements as term loans but also require that prospective borrowers already own commercial property.
Funding time: Business owners can typically apply within four minutes, get a decision as fast as 24 hours and receive funds in 72 hours from approval. However, CRE loan approvals may take up to 30 days.
Survey Methodology
Forbes hired the market research company OnePoll to do this online poll of 500 Americans who have asked for a business loan. The poll was done in line with the code of conduct of the Market Research Society. It was gathered between July 12 and July 20, 2023. With 95% confidence, the error range is +/- 4.4 points. An organization called OnePoll, which is part of the MRS and an official member of the American Association for Public Opinion Research (AAPOR), was in charge of this poll.