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Best Low-Interest Business Loans to Consider in 2023

While business loans provide essential financing to maintain and grow your business, they can be costly. Luckily, some online lenders provide low-interest business loans to creditworthy business owners. With a low-interest business loan, you can keep more revenue to put towards your business needs.

Best Low-Interest Business Loans
Lindsay Frankel
Written by:Lindsay Frankel
Personal Finance Expert

Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Online lenders are in the unique position to provide a more streamlined process and competitive rates because they leverage technology, have fewer costs, and often use alternative underwriting data for more accuracy. But not all online lenders offer the best rates and most competitive terms. To help you find the right small business loan, our team of financial experts reviewed and ranked the top online lenders based on a variety of data to choose the best business loans with low interest rates.

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In this review we highlight the terms, rates and fees of each lender, and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.


Best Low-Interest Business Loans for 2023 — Full Overview

Best Overall

American Express Business Blueprint™ - Best for Short-Term Financing

Average Monthly Revenue
At least $3,000
Min. Time in Business
12 months
Min. Credit Score
Key Features
  • Monthly fee: 3-9% for 6 month loans, 6-18% for 12-month loans, 9-27% for 18-month loans
  • Loan amounts ranging from $2,000 to $250,000
  • No prepayment penalties and no origination fees
  • Convenient application process
Pros & Cons
  • Available to businesses with at least $3,000 in average monthly revenue
  • Convenient online application
  • No prepayment penalties
  • No origination fees
  • Requires a 640 FICO score
  • Not all term lengths are available to all borrowers

American Express Business Blueprint™ program hosts the American Express® Business Line of Credit product. The lender offers a business line of credit ranging from $2,000 to $250,000 for which each draw is treated like a separate installment loan. You pay a monthly fee each month you have an outstanding balance, and that fee is especially low for 6-month draws

Main Features 
American Express Business Line of Credit ranges from $2,000 to $250,000, which you can easily draw from at any time from your phone once your application is approved. Each draw is treated like a six, 12, or 18-month installment loan. There are no prepayment or origination fees. For six-month terms, the monthly fee is 3-9%, depending on your credit and other criteria. Fees range from 6-18% for 12-month terms and 9-27% for 18-month terms. You must have a 640 FICO score, one year of business history, and at least $3,000 in average monthly revenue to qualify. However, all businesses are unique and are subject to approval and review.

If your business needs a quick injection of cash that you can repay within six months, American Express Business Line of Credit is a great choice for low interest rates. There is also no monthly fee whenever you don’t have an outstanding balance, so paying off a longer term early can help you save.
Fundbox review

Fundbox - Best for Customer Service

Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Borrow up to $150,000
  • Loan repayment 6-12 months terms
  • Interest rate 4.66% minimum
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Pros & Cons
  • Excellent customer reviews on Trustpilot and the BBB
  • Rates as low as 4.66% for 12-week terms
  • Draw funds from Stripe dashboard
  • Highly-rated mobile app
  • Check your rate without hurting your credit
  • No origination fees
  • No prepayment penalties
  • Requires at least $100,000 in annual revenue

Fundbox offers a business line of credit up to $150,000 with competitive interest rates. The lender offers you flexibility in paying your vendors. The application is easy, especially if your business uses Stripe, and the company is highly-rated for customer service.

Main Features
You can get a line of credit up to $150,000 from Fundbox and choose to repay over a 12 or 24-week term. Interest rates start at 4.66% for 12-week terms and 8.99% for 24-week terms. There are no origination or prepayment fees, but there are late payment and non sufficient fund fees. Fundbox offers a calculator to help estimate your weekly payments. Businesses must have $100,000 in annual revenue and six months in business to qualify, but Fundbox is more lenient than some other lenders when it comes to credit score — borrowers with a FICO score of at least 600 can qualify. You can get your funds within one business day after approval. 

Fundbox has competitive interest rates, offers several digital tools to make the process easier, and is highly-rated for customer service, making it a great option for business owners who want a good experience and low-cost funding.

Bluevine - Best for Quick Funding

Min. Monthly Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Funding up to $250,000
  • Interest rates as low as 4.8%
  • Loan Repayment 6-12 months terms
  • Quick and simple application
Pros & Cons
  • Funds delivered within hours
  • Rates start at 6.2%
  • No origination or maintenance fees
  • No prepayment penalty
  • Check your rate without hurting your credit
  • Offers a business checking account
  • Excellent customer reviews on Trustpilot
  • Must have at least $10,000 in monthly revenue
  • Not available in NV, ND, or SD

Bluevine offers lines of credit up to $250,000 with rates starting at just 6.2%. Plus, you can get a decision in as little as 5 minutes and have your funds within hours if you choose wire transfer. ACH transfers happen as soon as the next business day. 

Main Features
With Bluevine, you can get a revolving line of credit up to $250,000 and only pay a fee starting at 6.2% on the money you draw. You can repay over a six or 12-month term. There are no origination fees, maintenance fees, or prepayment penalties, but you will be charged a fee for late payments. Bluevine offers an easy online application with a credit decision in as little as five minutes and funding within a few hours. To qualify, you’ll need at least six months of business history, $10,000 in monthly revenue, and a 625 FICO score.

Bluevine offers competitive rates and the fastest funding of the lenders we reviewed, making the lender ideal for businesses that need a fast loan at a low rate.
Uncapped - Fast, flexible funding for your online business

Uncapped - Best for Revenue-Based Financing

Min. Monthly Revenue
Min. Time in Business
6 months
Min. Credit Score
Not specified
Key Features
  • Borrow up to $10 million
  • Fees as low as 2%
  • No minimum credit score
  • No personal guarantees required
  • Best for online businesses
Pros & Cons
  • Fees start as low as 2% of the loan amount
  • Flexible repayment terms
  • Borrow up to $10 million
  • No personal credit check required
  • No prepayment penalty
  • No origination fee
  • Offers virtual cards
  • High annual revenue requirements
  • Limited to business with an online model
  • Online customer reviews are few and far between
  • Not available in CA, ND, SD, or VT

Businesses with an online model, such as e-commerce sites and mobile apps, can access high borrowing limits with Uncapped and choose between fixed monthly payments and repayment as a percentage of sales. What’s more, fees start at just 2% of the loan amount. 

Main Features
You can borrow between $100,000 and $10 million from Uncapped and opt to repay as a share of your revenue with no fixed due date or in fixed payments over a term ranging from three to 24 months. Either way, you’ll pay a fee ranging from 2% to 12% of the loan amount. There are no hidden fees or prepayment penalties. There’s no minimum credit score, since Uncapped evaluates your business information instead, but you’ll need at least six months in business, $100,000 in monthly revenue, and an online business model to qualify. 

Revenue-based financing makes it easier to avoid late fees and works well for businesses with seasonal fluctuations in sales. Whether you choose this model or a term with fixed monthly payments, the fees are very inexpensive, especially for the most creditworthy borrowers.
biz2credit review

Biz2Credit - Best for Commercial Real Estate Owners

Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Borrow up to $2 million
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Multiple loan types available
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Rates starting at 7.99% (or 10% for CRE)
  • Excellent customer reviews on Trustpilot
  • High borrowing limits
  • Offers a wide range of loan types
  • Working capital loans available to bad credit borrowers
  • Dedicated funding specialist
  • No prepayment penalties
  • Charges an underwriting fee and origination fee
  • Funding takes at least 72 hours

Biz2Credit offers working capital loans repaid from receipts and term loans with rates starting at 7.99% as well as commercial real estate loans up to $6 million with rates starting as low as 10%. The company is not a direct lender, but instead connects you with its network of lenders offering a range of financing products. Biz2Credit has relatively strict requirements for commercial real estate and term loans. 

Main Features
Biz2Credit offers working capital loans repaid from receipts with rates starting at 7.99%. You can borrow between $25,000 and $2 million with the flexibility to pay daily or bi-weekly. You’ll just need six months of business history, $250,000 in annual revenue, and a 575 FICO score. For Biz2Credit’s term loans and commercial real estate loans, however, you’ll need a 660 FICO score and at least 18 months in business. You’ll also need at least $250,000 in annual revenue. Term loan rates start at 7.99%, while CRE loan rates start at 10%. Terms range from 12 to 36 months. Biz2Credit also offers a variety of other products through its network of lenders, including SBA loans. 

Biz2Credit can fulfill almost any financing need through its network of lenders. The company offers low starting rates and a dedicated funding specialist to help you choose the right loan for you.

Fundera - Best for Rate Comparison

Min. Annual Revenue
Min. Time in Business
Min. Credit Score
Key Features
  • Connections to multiple lenders
  • Competitive rates
  • Soft credit check
Pros & Cons
  • Compare rates from top lenders to get a low-interest business loan
  • Choose from a variety of loan types and credit cards
  • Access to a Funding Advisor
  • One streamlined online application
  • Excellent customer reviews on Trustpilot
  • Not a direct lender
  • Rates as high as 40% for some borrowers

Fundera is a loan comparison platform that allows you to compare rates and terms across lenders for a variety of products, including startup business loans and government small business loans. Fundera’s partner lenders can offer rates as low as 4% to qualified borrowers for equipment financing and 7% for most other loan types. 

Main Features
Fundera offers SBA loans, business term loans, business lines of credit, invoice financing, equipment financing, merchant cash advances, and more. With one application, you can see which lenders you qualify for and check the rate for your business. Rates start as low as 4% for equipment financing, 7% for lines of credit and term loans, and 8.5% for SBA loans. Fundera’s lenders offer a variety of term lengths, and you can get funded in as little as a few hours. Business requirements vary by lender, but Fundera has options for startups and more established businesses and accepts a range of credit scores. 

If you’re not sure where to start looking for business financing, Fundera is a great platform for comparing your options from different lenders. The company makes it easy to get a low-interest business loan that meets your needs, without getting quotes from individual lenders.

How We Chose the Best Low-Interest Business Loans

  • Loan Features: We considered loan limits, payment options, and term flexibility, prioritizing lenders that allow you to choose your term. 
  • Application process: We compared the ease of the application process and whether rate checks are available without a hard credit pull. We also prioritized lenders that offer fast funding. 
  • Interest rates and fees: We compared the range of interest rates and fees required by each lender, eliminating lenders that charge prepayment penalties.
  • Qualification process: We evaluated the strictness of the application criteria, including minimum credit score, annual revenue, and business history requirements.
  • Customer support: We checked for extended customer service hours, digital support options, and website resources to make sure borrowers would have sufficient access to support
  • Online user reviews: We compared customer ratings on third-party review sites like Trustpilot and ConsumerAffairs to assess customer satisfaction for each lender
  • Perks and Bonuses: Lenders were given bonus points for offering payment flexibility, providing transparent information, and giving borrowers access to advanced technology.


Main Features of the Best Low-Interest Business Loans

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
American Express Business Line of Credit640One yearAverage monthly revenue: at least $3,000$2,000 to $250,0003-9% for 6-month loans, 6-18% for 12-month loans, 9-27% for 18-month loans
Fundbox600Six months$100,000 in annual revenueUp to $150,000Starting at 4.66% for 12-week terms 
Bluevine625Six months$10,000 in monthly revenueUp to $250,000Starting at 6.2%
UncappedN/ASix months$100,000 in monthly revenue$100,000 to $10 million2% to 12% fee
Biz2Credit575 to 660Six months to 18 months$250,000 in annual revenueUp to $6 million Starting at 7.99%
FunderaVariesVariesVariesVariesStarting at 4%


What Is a Low-Interest Business Loan?

A low-interest business loan may refer to any loan or line of credit that comes with interest rates or fees below what is typical for the industry in current conditions. With a low-interest business loan, you’ll receive a sum of money and pay back what you borrowed, plus any finance charges, over time. 


When to Get a Low-Interest Business Loan

Anytime you need funding for your business, it’s a good idea to shop around for the lowest-cost financing product. You may need a low-interest business loan for:

  • Launching a startup or franchise
  • Expanding to a new location
  • Working capital
  • Hiring new staff
  • Buying inventory
  • Buying equipment
  • Investing in technology
  • Enhancing or updating your space, equipment, or technology
  • Marketing
  • Debt refinancing
  • Acquiring another business


How to Get a Low-Interest Business Loan

The process of getting a low-interest business loan varies from one company to the next, but in general, you can expect the following:

  • See if you qualify and check your rate with a handful of lenders
  • Choose the lender with the lowest rate that meets your needs
  • Submit business documents and agree to a hard credit check
  • Once approved, sign your loan documents
  • Wait for the funds to be deposited into your account
  • Begin repayment


Types of Low-Interest Business Loans

There are several types of low-interest business loans that meet different business needs. Most can be used in a variety of ways, but some are designed to be used for a specific purpose. Some of the most common types of low-interest business loans include:

  • Business Term Loans: Business term loans provide a lump sum that is repaid in fixed monthly installments. 
  • Business Lines of Credit: A business line of credit is a revolving credit line you can draw from as needed. You’ll repay what you borrow over time with interest. 
  • Equipment Financing: Equipment loans are designed for the purchase of equipment and are secured by the equipment. They sometimes require a down payment. 
  • Revenue-Based Financing: With revenue-based financing, you repay a lump sum as a percentage of your revenue over time. 
  • SBA Loans: SBA loans are government-backed loans with competitive rates and terms. They sometimes also include support with running your business. 


When to Consider Alternatives

Small business loans are a great way to fund the operations or expansion of your business, but they have some limitations, and they’re not always the best option for every business need. You should consider an alternative if:

  • You’re launching a startup with no business history
  • You only need a small amount
  • Repayment will be unaffordable


Alternatives to Low-Interest Business Loans

There are other financing options that may be better for your business if you’re in a unique situation. For example, if you don’t qualify for a low-interest business loan or you can’t afford to repay the money with interest, consider one of the following alternatives:

  • Business Credit Card: If you need to smooth out cash flow issues or you only need a few thousand dollars that you can repay quickly, a business credit card will be your best bet. You can even take advantage of a 0% introductory APR on some cards, which is helpful for making a large purchase, like a new appliance. 
  • Personal Loan: If you’re launching a business with no revenue or history, you can still qualify for a personal loan based on your personal credit score. Depending on the lender, you may be able to borrow up to $100,000 to start your business. 
  • Crowdfunding: If your business is in trouble and you’re worried about finance charges, or if you’re hoping to launch a new product or service with support from the community, crowdfunding can be a legitimate way to raise capital. 
  • Friends and Family: Getting a loan from friends and family can help you through a business emergency, and you can usually avoid paying any interest. Just make sure you have a plan to repay the money so you don’t damage the relationship. 



Getting a loan for your small business can be costly, especially during times when the Prime rate is high. Fortunately, there are relatively low-interest financing options available to small business owners. Some online lenders we reviewed offer fees as low as 2% of the loan amount. When choosing the best business loan for you, it’s important to compare rates from a few different companies. Keep in mind that your credit score and business information will impact your interest rate with each lender. 

Frequently Asked Questions(FAQ)

What Is the Average Interest Rate for Small Business Loans?

Interest rates for small business loans vary with the Prime rate. In the second quarter of 2022, the median fixed rate was 4.76%, according to the Federal Reserve Bank of Kansas City, but the Prime rate has about doubled since then. SBA 7(a) loans, a popular type of government-backed loan, currently have interest rates between 9.75% and 12.25%, depending on the amount and term. 

Is Getting a Business Loan a Good Idea?

Getting a business loan is a good idea if it will meaningfully increase your revenue-earning capacity. For example, buying new equipment, hiring new workers, investing in marketing or technology, or purchasing a new location all require funding, but will eventually produce more revenue for your business. A business loan can also be a good way to keep your business afloat during an interruption to your operations or a seasonal slump. 

Which Bank Takes the Lowest Interest on a Business Loan?

Every bank, credit union, and online lender evaluates borrowers differently. The bank offering the lowest interest rate to one business owner may not be the optimal choice for another. That’s why it’s important to compare rates across a few lenders before formally applying for a business loan. 

What Type of Loan Is Best for Starting a Business?

Most lenders require some business history and a certain amount of annual revenue to issue a loan. That’s why entrepreneurs often use personal loans to fund starting a business. The current average finance rate on a 24-month personal loan is 10.16%. 

About the Author

Lindsay Frankel

Written by: Lindsay Frankel

Personal Finance Expert

Personal finance expert with 3 years experience specializing in researching, writing, and editing insurance, loans, and credit cards content

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