When it comes to financing their businesses, small business owners have multiple options. This article will cover the top ten small business loans for startups. Before deciding which option is best for you, you should thoroughly investigate each option’s benefits and drawbacks. Let’s get started!
Small business startup loans are a form of business financing for new companies to assist with initial costs such as equipment, inventory, and operations.
Compared to conventional loans, these loans have typically lower interest rates and longer repayment terms.
By obtaining one of these loans, a new business owner can focus on growing their company without the added financial burden.
1. SBA Loans
SBA loans are government-backed loans offered by banks and other lending institutions. The low interest rates and lengthy repayment terms of SBA loans make them attractive. However, they can be challenging to qualify for, and the application process can be time-consuming.
2. OnDeck
OnDeck provides loans ranging from $5,000 to $250,000 to businesses with a credit score of at least 625 and at least one year in operation. The interest rate on loans is 35%, and funding is available the following day.
3. Kabbage
Kabbage is a loan option for businesses with a credit score of 640 or higher and at least one year in business. The maximum amount of a loan is $250,000
4. BlueVine
The BlueVine loan option provides business owners with prompt access to loan amounts between $6,000 and $250,000. To qualify for funding, your business must have been in operation for at least six months and must have a credit score of at least 600. A 4.8% interest rate is anticipated for borrowers.
5. Lendio
Lendio is a lending platform that provides loans between $500 and $5 million to businesses with at least six months of operation and a minimum credit score of 560. Two to four weeks may be required to fund a loan.
6. Biz2Credit
Biz2Credit is a lender that offers $25,000 to $2 million in loans to businesses that have been operating for at least six months and have a minimum credit score of 575. Within 72 hours, the company can fund loans.
7. Kiva
Kiva is a nonprofit organization that facilitates loans to entrepreneurs in developing nations. Loans through Kiva are typically interest-free and can be funded within a month. This makes it an excellent option for small businesses that require rapid access to capital.
8. Fundbox
Fundbox is a loan option for companies that have been in operation for at least six months and have a credit score of at least 600. The loans range between $1,000 and $150,000 and can be funded as soon as the following day. The payout rate is 4.6%.
9. Ascendus
The Ascendus loan option provides up to $10,000 to borrowers with a minimum credit score of 575 and an annual percentage rate of 4%. This loan is an excellent choice for borrowers seeking a quick and simple way to obtain the funds they require.
10. Finance Factory
The Finance Factory offers loan amounts ranging from $5,000 to $350,000, with no required minimum time in business and a minimum credit score of 600. The maximum interest rate is 15 percent, which is higher than some of the alternatives listed here.