Business loans provide capital for startup costs, inventory, equipment, payroll, and expansion. The best business loans match your specific situation including time in business, revenue, and credit profile. Understanding the landscape of SBA loans, online lenders, and traditional bank loans is essential to finding the right financing for your company.
Best SBA Loan: SBA 7(a)
The SBA 7(a) loan program offers up to $5 million with APRs ranging from 7.50% to 10% and terms of 10 to 25 years. These government-backed loans offer the lowest rates available, but the application process takes 30 to 90 days. For established businesses that can plan ahead, SBA 7(a) loans are the best business loans for large, long-term financing needs.
Best for Startups: Bluevine
Bluevine offers lines of credit with APRs from 6.2% to 78% and terms of 6 to 12 months. Funding is fast, and businesses with just 6 months of operating history may qualify. For younger companies, Bluevine provides some of the best business loans in terms of accessibility and speed.
Best for Quick Funding: OnDeck
OnDeck provides term loans from $5,000 to $250,000 and lines of credit from $5,000 to $100,000 with same-day funding. They require a minimum credit score of 600 and at least one year in business. OnDeck is among the best business loans when you need capital within 24 hours.
Best for Fair Credit: Lendio
Lendio operates as a marketplace connecting you with over 75 lenders, offering loan amounts from $500 to $5 million. Credit scores as low as 560 are accepted, making Lendio one of the best business loans for business owners with less-than-perfect credit. The marketplace model ensures you see multiple offers to compare.
Best for Established Business: Chase Business
Chase Business offers loans from $5,000 to $500,000 with competitive rates and in-person service at thousands of branches. Businesses with 2 or more years of operating history qualify for some of the best business loans from a trusted national bank. Having an existing banking relationship with Chase can also improve your terms.
Comparison Table
| Lender | Loan Type | Amount | APR Range | Speed | Credit Needed |
|---|---|---|---|---|---|
| SBA 7(a) | Term loan | Up to $5M | 7.50-10% | 30-90 days | 680+ |
| Bluevine | Line of credit | Up to $250K | 6.2-78% | 1-3 days | 625+ |
| OnDeck | Term loan / LOC | $5K-$250K | 9-80% | Same day | 600+ |
| Lendio | Marketplace | $500-$5M | Varies | 1-7 days | 560+ |
| Chase Business | Term loan | $5K-$500K | Competitive | 1-2 weeks | 680+ |
SBA vs Traditional Bank vs Online
SBA loans offer the best business loans by rate but require the most patience. Traditional bank loans provide relationship-based service and branch access. Online lenders offer the fastest funding with higher rates. The right choice depends on how quickly you need capital and how strong your credit profile is.
Types of Business Loans
Term loans provide a lump sum repaid over a fixed period. Lines of credit offer flexible draw-and-repay access. SBA loans are government-guaranteed with low rates. Equipment financing uses the equipment as collateral. Invoice factoring advances cash against unpaid invoices. Merchant cash advances provide fast capital but carry the highest costs. Understanding these types helps identify the best business loans for your specific need.
Disclaimer: Rates and terms are subject to change. This content is for informational purposes only and does not constitute financial advice. Always verify current rates directly with the financial institution. Aurwallet is not affiliated with any of the products mentioned.