Best Small Business Loans

As the saying goes: it takes money to make money. If you are a small business owner, you know that you need money to pay your staff, invest in marketing, and grow your business. But what happens if you don’t have enough money in your bank account to cover these expenses? That’s when a business loan...

Best Small Business Loans For 2022
Susan Guillory
Written by:Susan Guillory
Intuitive Business Coach and Content Magic Maker

A business loan can be used for a variety of purposes, from covering your day-to-day expenses while waiting for clients to pay their invoices to investing in your business’ growth by buying real estate for a new office or hiring staff that will help you serve more customers.

There are a variety of options when it comes to small business financing, and there’s one for every type of business with every credit profile.

Our Top Picks for Best Small Business Loans

Fundbox review
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K - $150K
Loan Repayment 6-12 months
biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
  • Connections to multiple lenders
  • Competitive rates
  • Soft credit check
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$5M
Loan Repayment
Loan Repayment Up to 30 years

How to Choose the Best Small Business Loan?

With so many options available, however, it can be daunting to choose the right one. Which lender has the best reputation? Which offers the lowest rate? It could take you weeks to research and find the right lender for your business needs…or you can let us take care of the legwork. We’ve invested a lot of time researching the best small business loan providers. Here’s the criteria we looked at to rank lenders.

  • Loan Features: Every lender offers different loan amounts and terms. We looked at a variety of types of loans and financial products.
  • Application process: We also considered whether applying for a loan would result in a hard pull or soft pull on applicants’ credit, as well as how complicated the application was.
  • Interest rates and fees: In addition to interest rates, some lenders charge other fees, like for origination or late fees.
  • Qualification process: We explored what it takes to qualify for a loan, including minimum credit score, annual revenue, and business history requirements.
  • Customer support: We look for lenders that are easy to contact through a variety of channels, including phone, email, and chat.
  • Online user reviews: We also look at reviews of lenders from customers on independent review sites like Trustpilot.
  • Perks and Bonuses: We also look at what makes a lender stand out, with perks like payment flexibility, advertising transparency, and advanced technology.

Best Small Business Loans of 2022 - Full Overview

1. Fundbox - Best for Short-Term Financing

Sometimes you need a little money fast and know you can pay it back within a few weeks or months rather than taking years to pay off a loan. Fundbox offers short-term loans to businesses, as well as lines of credit. The application process is simple, and funds can be deposited in as little as one business day. Fundbox offers flexible terms and has no prepayment penalty.

Short and sweet application
Money deposited as soon as next business day
Option of business loan or line of credit
Max terms only 52 weeks
May charge high interest rates for some
fundbox review

Watch our Fundbox review video

Fundbox offers term loans and lines of credit of up to $150,000. The term loan is repaid over either 24 or 52 weeks, and the line of credit has repayment terms of 12 or 24 weeks.

Interest rates are 4.66% to 18%. To qualify for a small business loan with Fundbox, you will need to have a credit score of 600 or more, $100,000 or more in annual revenue, and be in business for six months or longer.

Fundbox Features


Repayment Terms



Up to $150k

Term loan: 24 or 52 weeks

Line of credit: 12 or 24 weeks


Credit score: 600+

Revenue: $100k+

Time in business: 6 mo+

The Bottom Line

If you need money for your business now that you know you can pay back in a few weeks or months, Fundbox offers a suitable solution. With the option of either a term loan or line of credit, you can get the capital you need for your business quickly.

Try FundBox

2. Biz2Credit - Best for High-Value Loans

Some lenders only offer business loans of $100k or so, but if you need more, turn to Biz2Credit. With higher value loans available, as well as fast turnaround on application approval and funding, Biz2Credit offers businesses looking for a little more financing to grow an ideal solution. In addition to small business term loans, Biz2Credit also offers working capital loans and commercial real estate loans, so no matter what your financing needs are, this lender can help.

Higher value loans available
Little to no restrictions on loan use
Fast turnaround on application
Must borrow at least $25k
Requires high annual revenues
May include fees


Biz2Credit offers term loans of $25k to $500k, with repayment terms of 36 months. Interest rates start at 7.99%. Applicants are paired with a funding specialist who can help you determine the best financing solution for your needs.

To qualify for a term loan, you will need to have a credit score of at least 660, as well as have annual revenues of $250,000 or more. Your business must also have been in operation for at least 18 months.

Biz2Credit Features


Repayment Terms




36 months


Credit score: 660+

Annual revenue: $250k+

Time in business: 18 mo+

The Bottom Line

If you’re looking for up to $500k and aren’t finding it with other lenders, explore what Biz2Credit has to offer. With multiple financing options, you’re sure to find a solution that fits your business.

Try Biz2Credit

3. Fundera -Best for Many Loan Options

Not sure what type of financing is best for your business? Fundera offers a wide range of options, including: term loans, lines of credit, SBA loans, equipment loans, invoice financing, credit cards. You can get access to offers from multiple lenders with one application. Once you submit your application, a Funding Advisor will contact you and help you determine which is the best for your business.

Many types of financing available
Multiple offers with one application
Funding Advisor provides personalized service
Requirements vary by lender
Some require business active at least one year
Some lenders may charge fees

Watch our Fundera review video

Term loans with Fundera lenders provide up to $600,000, with repayment periods of one to five years. Interest rates are 7-30%.

Requirements to qualify for a term loan vary from lender to lender. The lowest credit score accepted by some lenders is 500, with $50,000 in annual revenue. Some lenders require a business to be in operation at least six months, while most require a minimum of one year.

Fundera Features


Repayment Terms



Up to $600k

1-5 years


Credit score: 500+

Annual revenue: $50k+

Time in business: 6 mo+

The Bottom Line

If you like having options in terms of what sort of business financing you can choose, Fundera’s got many offerings to select from. And with a personal Funding Advisor at your disposal, you can ask all the questions you have to ensure you get the right solution for your needs.

Try Fundera

4. Fora Financial - Best For No Credit Score Requirements

If you or your business don’t have stellar credit scores, you might feel limited in your financing options. But with Fora Financial, that’s not an issue. Fora looks at other criteria, like how long your business has been in operation and how much you make in revenue, to determine eligibility. Fora doesn’t have many (if any) restrictions on what you must use your business loan for, as long as it’s for your company.

No credit requirements
Criteria is easy to qualify for
Loans up to $750k
Not available if you have a bankruptcy
Origination fee
Interest rates may be high
fora financial banner

Fora Financial offers term loans up to $750,000, with a 72-hour turnaround time on applications. Repayment terms are up to 15 months, with interest ranging from 10% to 30%.

To qualify, your business must be in operation for at least six months. You must make at least $12,000 a month in revenues and have no bankruptcies on your credit report. There are no requirements for credit scores.

Fora Financial Features


Repayment Terms




Up to 15 months


Credit score: n/a

Monthly revenue: $12k

Time in business: 6 mo+

The Bottom Line

Just because you have poor credit doesn’t mean you shouldn’t have access to quality small business loans. Fora Financial sees you as more than a credit score and can work with you to get the capital you need to grow your business.

Try Fora Financial

5. Credibly - Best for Long-Term Business Loans

If you’re seriously investing in the growth of your business, you may need a sizeable loan that you can repay over several years, not months. Meet Credibly, a great lender for long-term business loans. While Credibly also offers SBA loans, lines of credit, merchant cash advances, invoice financing, and working capital loans, its long-term loans are the ideal solution for a business geared for growth like yours.

Longer repayment periods
Fast approval and funding
High value loans available
Interest may be high for some
May have origination fee
May be more difficult to qualify for than short-term loans

Credibly offers long-term loans up to $250,000, with repayment periods of 18 to 24 months. Interest rates range from 8% to 25%.

To qualify for a long-term loan with Credibly, you will need a credit score of 500 (that’s one of the lowest requirements a lender offers for small business loans) and a minimum annual revenue of $180,000. Your business must be in operation for at least six months, so startups can qualify.

Credibly Features


Repayment Terms



Up to $250k

18-24 months


Credit score: 500+

Annual revenue: $180k+

Time in business: 6 mo+

The Bottom Line

While some loans on this list have to be repaid within just a few months, Credibly lets you repay your loan of up to $250,000 over a couple of years, which gives you a little breathing room with your budget. And with lower credit requirements, you may qualify, even if you have poor credit.

Try Credibly

6. BlueVine - Best for Business Line of Credit

Sometimes you want to borrow a lump sum all at once, and other times, you need a little money now and a little later. In that case, a line of credit from BlueVine is worth exploring. Borrow what you need, then pay it back, then if you need more, you can borrow from the line again and again.

Cash when you need it
Funding within hours
Low interest rates
Repayment is weekly
Interest may be high for those with poor credit
Not available in some states
Watch our BlueVine review video

BlueVine offers lines of credit up to $250,000, with repayment in either six or 12 months. You can choose either weekly or monthly payments. Interest rates start at 4.8% and go up from there, depending on your qualifications.

To qualify for a line of credit with BlueVine, you must have a credit score of at least 625 and monthly revenues of $10,000 or more. Your business must be in an eligible U.S. state: businesses in Nevada, North Dakota, and South Dakota are not eligible. It must also be in operation for at least six months.

BlueVine Features


Repayment Terms



Up to $250k

6 or 12 months

Starts at 4.8%

Credit score: 625+

Monthly revenue: $10k+

Time in business: 6 mo+

The Bottom Line

If you aren’t sure how much money you need to borrow over time, a line of credit from BlueVine can be the flexible solution you seek. Take some money now and then more down the road when you need it.

Try BlueVine

7. Kabbage - Best for Lines of Credit and More

You might just want a lender that provides only small business loans…or you might like a lender that offers more. Kabbage, now owned by American Express, offers not only lines of credit but also interest checking and payment processing services. If the idea of bundling your financial services with one provider is appealing, check out Kabbage.

Services beyond financing available
No credit score requirements
Straightforward fees
Interest may be high for some
Line of credit limited to $150k
Must be Kabbage or American Express customer
kabbage Watch our Kabbage review video

Kabbage offers a line of credit of $1,000 up to $150,000. Each time you draw from your line, you must repay the money borrowed in six, 12, or 18 months, depending on your agreement. Interest rates vary, depending on the repayment period:

  • 6 months: 2-9%
  • 12 months: 4.5-18%
  • 18 months: 6.75-27%

To qualify, you must have a business that’s been in operation for at least 12 months. You must also have a valid business checking account and be 18 or older.

Kabbage Features


Repayment Terms




6, 12, or 18 months

  • 6 months: 2-9%

  • 12 months: 4.5-18%

  • 18 months: 6.75-27%

Credit score: n/a

Monthly revenue: n/a

Time in business: 12 mo 

The Bottom Line

If you like the idea of an interest-bearing checking account (that earns 1.1%) and/or payment processing services, these are the icing on the cake with a Kabbage line of credit.

Try Kabbage

8. Torro – Best for Startup Financing

Startups are often limited in their options for financing, but at Torro, brand new businesses are welcome. Whether you need funds to develop an innovative business idea, get your office outfitted and ready for business, hire staff, or acquire another business, you can get the capital your startup needs with Torro. Torro is an alternative financial service provider that connects borrowers with lenders, which means you are spoiled for choice when it comes to financing options for your startup.

Many financing options
Available to startups
Borrow up to $575k
Credit score requirement may be high
May have fees
Limited chat support
torro Watch our Fundera review video

Torro’s network of providers that offer startup loans provide between $5,000 and $575,000. Loan terms are 12 to 48 months, and interest rates can climb up to 36%.

To qualify, a business must be in operation for at least six months, with revenues of $5,000 or more a month. Torro looks for a credit score of at least 700.

Torro Features


Repayment Terms




12-48 months

Up to 36%

Credit score: 700

Monthly revenue: $5k

Time in business: 6 mo

The Bottom Line

If you’re getting turned down elsewhere for financing because your business is too new, Torro may be the solution for you. By connecting you to multiple lenders willing to work with startups, you will be able to choose the one that best fits your needs.

Try Torro

9. OnDeck - Best for Building Your Credit

Who doesn’t want to build their credit? Unfortunately, not every business lender reports borrowers’ activity to credit bureaus, which means your payments aren’t…pun intended…giving you credit. OnDeck, however, does report to credit bureaus, which means if your credit score could use a little oomph, all you have to do is pay your term loan on time each month, and over time, you should see that score rise. And that being said, if you’ve got bad credit, you can still qualify for financing with OnDeck.

Bad credit welcome
Business credit building
Fast funding
Payments are daily or weekly
Interest may be high

OnDeck provides both term loans and lines of credit. Its term loans range from $5,000 up to $250,000, with repayment terms up to 24 months. Lines of credit are available from $6,000 to $100,000, with a 12-month repayment period.

To qualify for either option, you will need:

  • 600 FICO score
  • $100,000 in annual revenues
  • 1 year or more in business
  • A business checking account.

OnDeck Features


Repayment Terms



Loan: $5k-250k

Line of credit: $6k-100k

Loan: up to 24 mo

Line of credit: up to 12 mo

Loan: 11.98-46.06%

Line of credit: 10.99-35.2%

Credit score: 600

Annual revenue: $100k

Time in business: 1 year

The Bottom Line

A loan should help you build credit, not lower it. Because OnDeck reports to credit bureaus, making your loan payment on time each month could boost your scores.

Try OnDeck

10. SmartBiz- Best for SBA Loans

Most of the loans on this list are from alternative lenders and may come with higher interest, especially if you don’t have good credit. But if you do have good credit, why pay too much in interest? SmartBiz offers loans backed by the Small Business Administration, and these loans come with lower interest rates and favorable terms.

Low interest rates
Long repayment terms
High approval rates
Application fee
Fast turnaround for SBA loan
Long application process

In addition to offering term loans, SmartBiz also offers two types of loans through the SBA: 7(a) loans of $30,000 to $350,000, which can be used for a variety of business expenses, and commercial real estate loans, of $500,000 to $5 million. Both have repayment periods of 10 to 25 years. Here are the interest rates:

  • 7(a): 6.75-7.75%
  • Commercial real estate: 5.50-6.75%

To qualify for an SBA loan through SmartBiz, you must be in business for at least two years and have a credit score of 650 for the 7(a) loan or 675 for the real estate loan. You cannot have a bankruptcy or foreclosure on your credit report over the last three years, nor any outstanding tax liens.

SmartBiz Features


Repayment Terms



7(a): $30,000-350,000

Commercial real estate: $500,000-5 million

Both: 10-25 years

7(a): 6.75-7.75%

Commercial real estate: 5.50-6.75%

Credit score: 650-675

Monthly revenue: n/a

Time in business: 2 years+

The Bottom Line

Loans backed by the SBA offer low rates and long repayment terms. If you qualify, SmartBiz can help you get low-cost financing to grow your business.

Try SmartBiz

Best Small Business Loans - Main Features Table

Company Max/Min Loan
Loan Rates Special Requirements
Fundbox Up to $150K 4.66 - 8.99% $100K+ in annual revenue, 6+ months in business
Biz2Credit $25K - $6M
Starting from 10% $250K+ in annual revenue
Fundera $5K-$5M Varies Varies based on the lender
Fora Financial $5K-$750K 1.1 to 1.3 factor rate $12K in gross sales, 6+ months in business, no open bankruptcies
$5K-$400K 8% - 25% $15K+ average monthly bank deposits,
6+ months in business, and $50K+ in annual revenue
BlueVine Up to $250K 0.25 - 25% $10,000+ in monthly revenue, and 6+ months in business
Kabbage $1K-$150K 9.00-36.00% 12+ months in business, and, a valid
business checking account
Torro $3,000 / $575,000 Varies 680+ FICO credit score
OnDeck $5k-250k 11.98-46.06% Credit score: 600
Annual revenue: $100k
Time in business: 1 year

What Is a Small Business Loan?

A small business loan provides the capital your business needs to pay expenses or invest in growth. You are given a lump sum of money, which you repay over an agreed-upon period of time, with interest.  A small business loan may be used to hire employees, buy inventory, pay bills, or rent or buy a property. Each small business lender may have certain requirements to qualify for financing, including credit scores, time in business, and annual or monthly revenue.

Types of Small Business Loans

There are actually several types of small business loans available. Which you choose depends on your business needs.

  • SBA Loans: These are loans backed by the Small Business Administration, and come with some of the lowest interest rates and most favorable terms. Generally speaking, you need to have good to excellent credit to qualify.
  • Term Loans: These are offered by banks and online lenders and may range in their criteria to qualify, as well as their rates and terms. There are term loans available even for businesses with poor credit, though these may charge more interest.
  • Lines of Credit: Rather than getting all your money upfront, with a line of credit, you have access to a certain amount of money, which you can borrow from and repay again and again.
  • Merchant Cash Advances: This isn’t a loan but rather an advance on future credit and debit card sales. You repay this through automatic payments made daily or weekly from card transactions.
  • Invoice Factoring: With invoice factoring, you sell your unpaid invoices to a factoring company, minus a fee. The factoring company then collects the payment on the invoice.
  • Equipment Financing: This is specifically for purchasing equipment like heavy machinery or company vehicles. The equipment you purchase acts as collateral on the loan, which may help you get a lower interest rate.

How to Get a Small Business Loan

Though the application process may vary a bit from lender to lender, there are a few basic steps you can expect once you choose the right lender for your business.

  • Step 1: Gather Documents: Start by seeing what your lender requires with the application. While each application may require different things, many lenders will ask for:

- Photo ID

- Social Security number

- Bank or accounting records

- Business licenses

  • Step 2: Apply: Each application may vary in its complexity. Some may take just five minutes to fill out, while others may take a lot longer. If you’ve gathered your documents, this step should be fairly straightforward. Expect to be asked about:

- Business address

- Industry

- Annual revenues

- Time in business

- Personal details, including address, Social Security number, income

- Amount you want to borrow

  • Step 3: Wait: Some lenders approve loans instantly or within a few hours. Others take a few days, and in the case of an SBA loan, even longer.
  • Step 4: Review Loan Agreement: Once you’ve been approved, you will be sent a loan agreement that includes how much you are borrowing, the interest rate, and repayment terms. If you agree with the terms, sign and return to the lender.
  • Step 5: Get Paid: Once the lender receives your signed loan agreement, the loan funds will be deposited into your business bank account in as little as one business day.

Where Can You Get a Small Business Loan?

We’ve discussed online lenders in this article, but they’re not your only option for small business financing. Both banks and credit unions also offer small business loans and lines of credit, though their requirements may be more stringent than with online lenders.

Banks and credit unions may offer both term loans as well as SBA loans, though typically you must be in business for at least two years with high credit scores to qualify.

For those who don’t meet these requirements, there are many online lenders like the ones we’ve discussed here who look at other criteria besides credit scores or time in business. The caveat is that you may pay more in interest to get the financing you need.

Which Industries Are Most Likely to Apply for Loans?

Small business loans are available for almost any industry. The type of funding that's available may depend on your specific business type.

According to the 2021 Small Business Credit Survey, (Source: Small Business Credit Survey, Federal Reserve Banks), manufacturing companies led the way with receiving the full amount of financing sought. Retail businesses reported receiving funding the second most, followed by healthcare and education organizations and leisure and hospitality industry.

Manufacturing - 47%
Retail - 36%
Healthcare and education - 32%
Leisure and hospitality - 32%

(Source: Small Business Credit Survey, Federal Reserve Banks)

What industry-specific loan are you looking for?

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Your small business needs capital to thrive. Whether you need money to get through a slow period or to expand your business by opening a second location, there are financing options available. The good news is that your credit score, if it’s not great, won’t keep you from getting the money you need.


That being said, take the time to shop around because rates and terms can vary wildly from one lender to the next. You want the loan with the terms that best suit your business. Start with the list we’ve provided here.

Frequently Asked Questions (FAQ)

What is a business loan?
A business loan is a loan provided to business owners by private lenders to help provide capital for various business needs.
What credit score is needed for a small business loan?
Credit score requirements vary depending on the specific lender. Some lenders allow borrowers to qualify with low credit scores, but your odds improve with a FICO credit score of at least 600 or higher.
Do business loans look at personal credit?
  • Your personal credit score may be factored into decisions by lenders for a business loan. This is especially true for sole proprietors and newer business owners without an established business credit history.
What can I use a small business loan for?
A small business loan can be used in a variety of ways including working capital, inventory needs, renovations, technology upgrades, staffing, real estate, business acquisitions, and more.
How do I qualify for a small business loan?
The qualifications to be eligible for a small business loan vary depending on the lender. All lenders will perform a credit check as part of the application process. Some lenders allow you to prequalify without it negatively affecting your credit score. Eligibility for a small business loan may depend on your current annual or monthly business revenue or how long you've been in business.

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About the Author

Susan Guillory

Susan Guillory

Intuitive Business Coach and Content Magic Maker

Kevin is an expert in banking, credit cards, car insurance, savings, checking accounts, and insurance.

More about me