Best Of
Online lenders provide term loans, lines of credit and invoice factoring. Compare small-business lending companies to find the best fit for your business.
If you need financing for your small business, your local bank is no longer your only option.
Online lenders offer quick access to small-business loans to address various needs, from dealing with an emergency to growing your small business. Here are nontraditional small-business lending companies you can compare based on your needs and qualifications.
Our picks for
Term loans
If you’re looking for a lump sum of cash to repay over a fixed period of time, term loans are right for you. Because you can pay them off over a longer period, term loans are usually the better choice for larger investments and long-term growth. Generally, term loans have lower rates than lines of credit, but some may require collateral.
6.99 - 24.99%
650
Pros
Cons
Qualifications:
12.18 - 36.00%
660
Pros
Cons
Qualifications:
9.00 - 99.00%
600
Pros
Cons
Qualifications:
Our picks for
Lines of credit
If you’re looking for financing flexibility, a line of credit is a better option. You draw on the line — up to a specified amount — as needed and pay interest only on the money you borrow. Lines of credit are a better choice for short-term expenses. Although the APR may be slightly higher than for term loans, lines of credit provide the flexibility to take out money only when, and as often as, you need it.
15.00 - 78.00%
600
Pros
Cons
Qualifications:
11.00 - 61.90%
600
Pros
Cons
Qualifications:
Our pick for
Invoice Factoring
Invoice factoring is a way to get immediate cash by borrowing against your unpaid customer invoices, which can help you fill cash-flow gaps while you wait for customers to pay. This type of financing is only for companies that sell goods and services to other businesses and, therefore, have invoices. Typically, invoice factoring costs are higher than with term loans and lines of credit.
15.00 - 68.00%
530
Pros
Cons
Qualifications:
| Lender | Best For | Est. APR | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Credibility Capital - Online term loan | Best for Term loans | 6.99 - 24.99% | 650 | See Your Loan Options
with Fundera by Nerdwallet |
Funding Circle - Online term loan | Best for Term loans | 12.18 - 36.00% | 660 | See Your Loan Options
with Fundera by Nerdwallet |
OnDeck - Online term loan | Best for Term loans | 9.00 - 99.00% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
BlueVine - Line of credit | Best for Lines of credit | 15.00 - 78.00% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
OnDeck - Line of credit | Best for Lines of credit | 11.00 - 61.90% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
BlueVine - Invoice factoring | Best for Invoice factoring | 15.00 - 68.00% | 530 | See Your Loan Options
with Fundera by Nerdwallet |
When comparing and choosing a small-business lender, consider several factors, such as loan types, eligibility and costs.
BlueVine: Good for B2B businesses that deal with unpaid invoices and cash flow needs. You must have dependable customers. Also offers term loans and lines of credit.
Credibility Capital: Good short-term financing option for businesses with two years or more of history. Good credit is required.
Currency Capital: Faster way of applying for an equipment loan. Competitive rates for equipment financing of up to $2 million.
Fundbox: Great no-credit-check option if you have unpaid customer invoices or if you need a line of credit for short-term working capital.
Funding Circle: Term loan for growth. Rates are lower compared with other online lenders. Your finances must be in good shape.
OnDeck: Quick, easy funding, but rates may be high. Good if you need money fast and your personal finances aren’t stellar.
» MORE: If your business is less than a year old, consider these startup financing options.
To recap our selections...
Online lenders offer term loans up to $500,000, while loans backed by the U.S. Small Business Administration provide up to $5 million. Your borrowing limit depends mainly on the size and age of your business.
It can be hard to get a small-business loan if you have a bad personal credit score (300 to 629 FICO), low annual revenue and no business history. Build your credit scores, develop a strong business plan and secure the loan with collateral to qualify for a business loan.
Small-business loans are best used to finance business growth, whether it’s to open a new location, purchase equipment and inventory or hire additional staff. It’s generally a good idea to take out a business loan if your expected profits exceed the loan’s cost.