Do you have an amazing business idea but do not have the money to start that business? Do you want a small business loan but do not know where to get it from? If yes, you are at the right place. Here we will tell you about the best small business loans.
This is the era of entrepreneurs, everyone wants to start their business and be their own boss. Businesses are a big investment. You cannot start a business with your savings only, even when it is a small business, you will need some financial assistance. That is when small business loans come into the picture.
We suggest you take a small business loan from a bank but if the bank denies your loan request then you can also get loans from online loan providers. In this article, we will specifically discuss some online small business loan lenders.
Best Small Business Loans
Are you looking for small business loans? Let’s find out where you can get it from.
If you are looking for a business loan then Prosper could be a perfect choice for you. It is a peer-to-peer lending marketplace. It provides business loans. They protect your personal information like your bank details, contact number, etc. very well, they do not share it with a third party. If you have a stable and significant income then Prosper could be the best for you.
- You can get a loan of $2,000 to $35,000.
- If your loan is approved, the amount will be deposited within 1-3 business days.
- You can choose a repayment period of 3 to 5 years.
- You need to have a good credit history.
- You will have to pay an origination fee of 1% to 5% depending on your loan amount.
- High maximum interest rates.
Lending Club is also a peer-to-peer marketplace that provides small business loans to its borrowers. It acts as a link between the borrower and the lender. You can also invest in your peers and earn returns as they pay the loan back. They do a soft credit check so even if you have bad credit, you can still get a loan.
- You can get a loan of $5,000 to $300,000.
- You will have to pay fixed monthly payments until your loan is completely repaid.
- They provide loans even to bad credit holders.
- It has a 1%-6% service fee.
- They provide unsecured loans.
Kabbage also provides small business loans. It automatically obtains the data and verifies your bank account so the loan amount is deposited into your account in minutes. Though if you need a loan of more than $150,000 then it will require a manual review and might take a longer time.
- Provides you with a loan even if you have bad credit.
- You can get a loan of $2,000 to $250,000.
- They make instant deposits for loans of up to $150,000.
- They require a personal guarantee.
- They have a complex monthly fee structure.
- It does not build your business credit.
Fundera Lending Marketplace
Fundera will provide you with fewer options of lenders but good ones. They are very selective with their lenders. They verify the details of lenders and allow only those lenders which are good for the borrowers. Not only business loans but you can also get loans for various purposes like a car loan or personal loan.
- It has borrower-friendly lenders.
- It provides loans of $2,500 to $5 million depending upon the type of loan you are applying for.
- Early deposit into your account, depending upon the type and amount of loan.
- They do a deep credit check and provide loans to only good credit holders.
- The interest rates are comparatively high.
- High origination fee.
OnDeck is specially made to provide business loans to new businessmen and startups. They provide loans to bad credit holders as well. If you have an unstable cash flow then OnDeck could be the best option for you. They have an easy application process and make instant deposits.
- Provides you with a loan, even if you have bad credit.
- Low-interest rates.
- They make early deposits, depending upon the amount of the loan you have applied for.
- They do not provide loans for some specific types of businesses like funeral loans and pawn shops.
- Early repayment of a loan would not help you save any money.
Some Other Options for Small Business Loans
If you do not want to get a loan from online small business loan providers then you can get small business loans from banks, credit unions, or online direct lenders.
Banks are the best for small business loans. They provide loans with low-interest rates and their reliability cannot be questioned. But your loan application will only be approved if you have a good credit score. If you want the loan amount to be credited into your account immediately then banks are not a good option for you. The bank has a lengthy procedure and their paperwork can be tiring.
You will only be able to get a small business loan from a credit union if you are a member. Credit unions provide small loans to their members. You also need to have a good credit history to get loans from credit unions.
Online Direct Lenders
You can find various online direct lenders on the internet who provide small business loans. One can choose any of them whose terms suit you the best. But you have to be a little cautious. Read the terms and conditions properly, and see if there are any hidden charges. Check their ratings and reviews from previous customers before making a final decision.
FAQs: Frequently Asked Questions
Q1- How hard is it to get a small business loan?
It depends on your credit. If you have a good credit score then it is very easy for you to get a small business loan. There are various options for you to apply for a loan. You can get a loan from a bank, credit union, or online loan provider. But, if you have a bad credit score then your options are fewer, and you are only left with online loan providers and online direct lenders.
Q2- How to get a small business loan?
If you want to get a loan from the small business loan providers then you can go to their website and make your profile. Once you have your profile ready, you can apply for a loan. You will have to submit certain documents like your valid ID, income proof, etc. Once your loan application is verified, the loan amount will be deposited into your account.
Q3- Can I get business loans for small businesses with bad credit?
If you have bad credit then it might be difficult for you to get a loan, but it is not impossible. Banks and credit unions might deny your loan request but you can still get a loan from online loan providers or online direct lenders.
If you want to start your business but are worried about the funding then you can take a small business loan now. You can choose any of the above options to take a loan. Just do your complete research and compare the available options before taking the final call.
- Meet our Author of Our Editorial Team, Susan Anderson. She is an experienced writer and financial expert who has been writing about credit cards, card offers, services, and other related topics for more than twenty years. With her in-depth knowledge on the matter and her ability to distill complex topics into useful information for readers, Susan has become a go-to source for reliable credit card advice. In addition to her work at the editorial team, she also contributes to major publications such as The Wall Street Journal and CreditCards.com. With her expertise and industry experience, she is able to provide sound advice on all aspects of credit responsibly while helping people save money in the process.
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