Best Small Business Loans to Consider in 2023

American Express Business Blueprint^TM hosts the American Express® Business Line of Credit, among other products. With a business line of credit, you draw against your line, pay it back, and then use it again. It acts similarly to a credit card; and differs from a small business loan in that you only pay interest on the amount you actually use.

Main Features

American Express Business Blueprint offers a line of credit ranging between $2,000 and $250,000. 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: 3-9%, 12 months: 6-18%, 18 months: 9-27%

To qualify, you must be in business for at least one year, have average monthly revenues of at least $3,000, and have a minimum credit score of 640, however, all businesses are unique and are subject to approval and review.

 

National Funding offers working capital loans to help your small business cover everyday expenses like rent, utilities, payroll, and taxes. A working capital loan may also come in handy during slow seasons when you need to manage gaps in cash flow. While you can borrow up to $500,000, you must repay your loan daily or weekly.

Main Features

National Funding’s short-term working capital business loans range from $5,000 to $500,000 with repayment terms between four months and two years. The pay rate starts at 1.10. For a chance at approval, you’ll need a minimum credit score of 600, a business track record of at least six months, and $250,000 or more in annual revenue.

National Funding also offers equipment financing and leasing of up to $150,000. You can use equipment loans to cover the cost of new or used equipment. To be approved, you'll need an annual revenue of $250,000, be in business for at least 2 years, and have a credit score of 600 and higher.

Backd offers personalized small business loans tailored to your specific financial needs. Founded in 2018, Backd was created to give more businesses access to funding, without having to wait months for a decision. In fact, it takes just a few minutes to apply for funding from Backd and a lending decision is made almost instantly.

Main Features

Backd offers two loan products - working capital loans and small business lines of credit. Working capital loans range from $10,000 to $2 million with no collateral required. Terms are up to 16 months and payments are made daily, weekly, or semi-monthly. Backd lines of credit range from $10,000 to $750,000 with unlimited terms and competitive rates. You can draw from the line at any time, use the funds, pay them back, and draw from the line again.

To qualify for funding from Backd, you need to be in business at least one year and have an annual revenue of $100,000 or more. Your business must be based in the U.S. and you must have a business bank account.

Lendzi offer seven different types of small business products and cater specifically to small businesses that have either been turned down for financing elsewhere or businesses with high revenue. Lendzi is a direct lender but the company also partners with more than 75 other lenders to increase your chances of getting a loan. If they can’t fund your loan themselves, odds are high they can find a lender who can. The application takes just a few minutes to fill out and approved borrowers can get the funding they need in as little as 24 hours.

Main Features

Whether you’re looking for a short-term loan, a merchant cash advance, or a small business loan backed by the SBA, Lendzi can meet your needs. Most products range from $5,000 to $500,000, with the exception of SBA loans that may be as large as $5 million. Rates and fees will vary depending on the product you choose, the lender you choose, and your overall credit and income profile. Minimum qualifications include six months of business history and $180,000 in annual revenue. Credit score doesn’t matter as much, but it should be noted that those with higher scores will receive better interest rates. Below is what you can expect to see with a working capital loan.

Some lenders only offer small business loans up to $100,000, but if you need more, turn to Biz2Credit. With higher value loans available, as well as fast approval times, Biz2Credit offers businesses looking for a little more financing an ideal solution.

In addition to small business term loans, Biz2Credit offers working capital loans and commercial real estate loans. No matter what your financing needs are, this lender can help.

Main Features

Biz2Credit offers term loans of $25,000 to $500,000, with repayment terms up to 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.

Sometimes you need money fast and know you can pay it back within a few weeks or months rather than taking years to pay off a loan. If that’s the case, Fundbox offers short-term loans and lines of credit to businesses with a quick funding process and short repayment period.

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.

Main Features

Fundbox offers term loans and lines of credit of up to $150,000. The term loan is repaid over 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 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.

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, pay it back, then if you need more, you can borrow from the line again and again.

Main Features

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.

Uncapped offers business funding through a revenue-shared agreement. It’s ideal for businesses with an online model, such as ecommerce, subscription, SaaS, or those with a mobile app. Uncapped offers both fixed-term and revenue-based loans that don’t require collateral or personal guarantees. There’s no minimum credit score requirement, and you’ll even have the option to repay Uncapped as a percentage of your revenue.

Main Features

You can get an unsecured business loan from Uncapped in an amount ranging from $10,000 to $10 million. Other than a flat finance fee that varies from 2% to 12% of the loan amount, there are no fees or prepayment penalties. There are also no minimum credit requirements to qualify, but you will need at least six months of business history and at least $10,000 in monthly revenue.

Your business must also process more than 40% of its payments online. You have two repayment options with Uncapped: Fixed installments over three to 24 months, or revenue-based repayment, which requires you to pay 5% to 25% of your sales until your obligation is fulfilled.

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.

Main Features

Torro’s syndicated network of investors 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 for start-up loans, but does accept lower scores if your business is not brand new.

SmartBiz offers short-term business loans, business line of credit and SBA loans. SBA loans are backed by the Small Business Administration and come with lower interest rates and more favorable terms. The qualification requirements are higher for SBA loans than term loans, but if you meet them, the savings in interest and longer repayment periods may make the loan worth it.

Main Features

SmartBiz offers term loans and 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 SBA commercial real estate loans of $500,000 to $5 million. Both have repayment periods of 10 to 25 years. Here are the interest rates: SBA 7(a) loan: 10.75%-11.75%, SBA Commercial real estate loan: 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.