As a small business owner just getting their feet wet or a startup, small business loans can be a critical milestone in achieving your success. Now traditional banks are not the only financing option to help fund your business. There are SBA loans, business lines of credit, and even invoice-based financing options available through many reputable online lenders. Finding the right one can be a hassle. Making sure your selected financing option can meet your small business needs. There’s no need to spend countless hours looking through endless websites, we have taken the legwork out of it and have compiled a list of the best small business loans for 2019.
Small business find it hard to access capital for their operation and general growth. Fundbox comes in to bridge this gap and ensure that small business have easy time accessing credit. It understands the cost implication that small business have to meet in taking their businesses to the next level.
The sole reason why OnDeck was created was to cater for the needs of small businesses in regards to the acquisition of small business loans. It was started in 2007 to integrate different needs of small business owners apart from just offering them capital but also evaluating their performance.
LoanBuilder is a small business loan provider that is operated by PayPal, a well-recognized player within the payments industry. The entity behind the loan is known as Web Bank. LoanBuilder was initially a product of Swift Financial, which Paypal acquired in 2017. LoanBuilder is available in all 50 US states and Washington DC.
Kabbage is a focused on giving small businesses the platform to access capital in a flexible and straightforward manner. It has offered more than $3 billion in loans to small businesses as well as powered automated funding to different organizations from various parts of the world.
Lending Club was started to create a platform where investors and borrowers can meet for borrowers to get credit from investors. Lending Club has been in this business since 2007, and assisted numerous people have great control over their debts, helped people start and run small business, as well as make investments for their future.
Prosper prides itself in being the first lending marketplace for Americas, and has funded loans worth more than $10 billion. Its model is to give individuals a platform through which they can invest in one another in socially and financially rewarding manner.
Most businesses find it hard to get the finance that they need in their operations. Additionally, investors have had a challenge in achieving their desired growth. These are some of the reasons that inspired the formation of Funding Circle.
Fundation is a trusted provider of diverse credit solutions. It has created a platform for lenders and other financial institutions can offer growth capital and working capital to owners of small business.
Swift Capital is a lender of credit to small and medium business and it is unique in its operations. Unlike other lenders who use your credit score to determine your credit worthiness, Swift Capital bases their assessment on the business’s future sales.
BlueVine understands how rewarding it is to won a small business, and how it can be challenging to acquire cash. Accessing cash can be quite hard for most small businesses. BlueVine comes in to offer a platform through which small businesses can acquire capital seamlessly.
National Funding is an effective loan company that specializes in the provision of business loans to individuals for the purpose of helping them grow. In addition, it leases equipment to businesses. The primary goal of National Funding is to ensure that small businesses grow and prosper through the acquisition of loans easily.
Rapid Advance stands out for its commitment in the success of its employees and clients. The company’s culture is to contribute immensely to its customers and to bring much difference in how small businesses operate.
What are Small Business Loans?
Small business loans are loans, lines of credit, or a financial agreement to repay a certain amount of money back within a certain time, for the proceeds up front. Some of these loans have fewer restrictions and requirements, making it easier for a small business to procure financing. Small business loans can also come with perks for the borrower that can minimize expenses for the business and the owner. There are several types of small business loans and becoming familiar with each of them is in your best interest. Which of these small business loans is right for your business needs?
An SBA loan is a government guaranteed small business administration loan program that communicates with banks to offer borrowers low-interest rates coupled with long-term repayment options. However, the process is time-consuming, and there are strict requirements. For instance, only those with a “Great” personal credit score (650+) should apply, although there are several SBA lenders that accept lower scores. Additionally, SBA loan applicants should already have strong business finances and flexibility in fund necessity to wait for funds. These types of loans are excellent for major one-time purchases and longer-term investments, like real estate or buying business equipment.
Avg. Loan Amount: $30,000 up to $5 million
Annual Percentage Rate Range: 6.5% up to 9%
Business Term Loan (Short/Long)
For business term loans, online lenders often have term loans that go up to $500,000. A short-term loan, experiences a shorter repayment period of usually six to 12 months, while the much longer-term loans have repayment options of up to 10 years and in some cases even longer. Business owners can use these finances for specific items like equipment, inventory, or employee payroll compensation.
Annual Percentage Rate Range: 6% up to 99%
Great for large one-time investments
Business Line of Credit
Another form of small business loans for startups and small companies are Business lines of credit. It offers access to on-hand capital. In most cases, lenders provide you access to a certain amount of credit and no payments are made or interested accrued unless the funds are used.
Sliding Credit Line: $2,000 up to $500,000
Annual Percentage Rate Range: 8% up to 99%
This lets your small business use unpaid invoices as a means of immediate cash. Invoices are sold to factoring companies that collect the balance of the loaned amount from unpaid invoices from customers. If selling your invoices and forfeiting control is something you may not consider, invoice financing is also used as an alternative to invoice factoring.
Range of Financing: $500 up to $500,000
Annual Percentage Rate Range: 16% up to 77%
Small Business Loans are Available in Different Forms
For startups and small businesses, there are several financing options available and not every one of the small business loans out there is a perfect match for every business. If you are looking outside of traditional loans or credit lines to provide financing for your business, then considering a personal loan for business to serve as means of implementing additional financing for your small business could be a strong alternative. Personal loans are based on an individual’s credit performance and not the financial history of the business. This is a great alternative to small business loans if you need smaller amounts of funding.
How do I qualify for small business loans?
This is a little more difficult and requires more than just one answer. The issue that comes into play is that not every lender uses the same guidelines, requirements, or determining process to figure out whom they are willing to give small business loans to. How one lender weighs your credit score may be different from another, and this goes for several other factors and lending metrics. For obvious reasons, most lenders will pay attention to your cash flow and the ability to repay a potential loan or debt back.
Some lenders may ask for more specific documentation when determining eligibility. This is normal and can usually include requests for past tax returns, bank statements, and other financial records in order to properly assess a prospect or borrower’s eligibility.
Why choose from these lenders for small business loans?
It’s said that only 20% or 1 out of 5 businesses that go to a large bank for a loan are approved. So what do the other four businesses or 80% do? To answer this growing concern, we partnered with reputable online lenders that are all about simple, easy, and efficient, making the small business loans process smooth and effective for startups and small businesses to secure funding. We have collected the data and have put the top small business loans of 2019 all in one place. Get the fund your business needs today. Find your perfect financing option and lender for all of your small business needs.
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