Small company loans are an important part of the business world. They rely on business owners to invest in new equipment or supplies, fund payroll, and manage cash flow. A small business loan provides business owners and entrepreneurs with a lump sum of cash or a line of credit that they can use to stay operational and expand their business for years to come.
The finest small company loans include simple application and funding processes, as well as competitive costs and conditions.
Lendio
Lendio is a loan marketplace, so it won’t be lending you funds directly, and we believe they shine in this category since they let you compare loan offers with more than 75 lenders in the small business space. Having the chance to have lenders compete for your business is the best way to make sure you get a small business loan with the best rate and terms you can possibly qualify for.
Lendio was founded in 2011, yet it has grown dramatically since then. So far, they claim to have funded over 300,000 small business loans worth more than $12 billion, and they don’t plan to stop anytime soon.
In terms of their small business loan offering, Lendio lets you borrow between $25,000 and $500,000, depending on your needs. You can repay your loan over one to five years, and your interest rate could be as low as 4.5%. Lendio has just a 15-minute application process, and you can get a decision on the same business day, making it an efficient place to shop for a loan.
Kabbage
Founded in 2008, Kabbage is a technology company that aims to provide cash flow to businesses of all sizes. While many online companies focus on small business lending, we believe Kabbage stands out due to its plethora of small business loan options and its added features and benefits.
Kabbage offers a variety of small business loans and options for a line of credit, including both unsecured and secured options. You can also apply for industry-specific loans for trucking, pawnshops, retail, and more. Kabbage prides itself on its easy online application process and fast funding for those who are approved.
Read Also: How to Apply For a Small Business Loan in NC?
Loan amounts from Kabbage vary depending on the type of loan you apply for. Kabbage also offers business lines of credit up to $150,000 and online loans in amounts from $500 to $150,000. Other loan types might offer larger limits.
Kabbage Funding also offers repayment terms of six and 12 months, depending on your needs. With Kabbage, there are no hidden loan fees or prepayment penalties, either. You will pay a monthly fee, but they are upfront about it.
Fundbox
Fundbox is on this list as the lender offering the best revolving line of credit, which allows you to qualify for a specific amount and borrow only what you need. Fundbox was founded in 2013, and the company uses technology to facilitate its B2B lines of credit with the goal of helping small businesses achieve significant success.
Lines of credit from Fundbox are only available in amounts up to $150,000, but you can get prequalified online without completing a full loan application. Once you apply, you can get a credit decision within minutes, and you’re under no obligation to accept the loan funds.
Because Fundbox focuses on lines of credit, you get the chance to borrow only as much money as you need. Funds can transfer from your line of credit to your business checking account as soon as the next business day. This provider gives you the option to save money by paying off your balances early and ahead of schedule without any prepayment fees.
Fundbox lets you see the fees for your line of credit upfront, and they’ll automatically debit your bank account to pay your amount due, so you won’t have to think about it. You get the option to repay your line of credit over 12 or 24 weeks.
Kiva
We chose this lender as the best option for microloans based on the fact that you can borrow money at 0% APR and repay it over three full years. Founded in 2005, Kiva aims to help underserved communities and their members qualify for the small business funding they need to get their dreams off the ground. So far, 2.1 million Kiva lenders have funded more than $1.74 billion in loans to more than 4.3 million borrowers in 77 countries around the globe.
Interestingly, Kiva is not a bank but is instead a peer-to-peer lending platform. Kiva loans are geared to disadvantaged entrepreneurs, so investors who lend money through the platform get the chance to help people around the world.
In terms of their loan product, Kiva only lets you borrow up to $15,000. You can apply online in 20 to 30 minutes and earn the ability to advertise your funding project on their marketplace within 30 days; you get the chance to repay your loan over 36 months.
Kiva also lists easy requirements to qualify, including living in the U.S. and being at least 18 years old. To qualify for a Kiva loan, you also have to agree to use your loan for business purposes only.
Fundera
Fundera is an excellent option for consumers hoping to qualify for an SBA loan, mostly because it lets you fill out a single application and compare multiple SBA loan options in one place. Founded in 2013, Fundera is a loan marketplace instead of a direct lender. This means the company connects small business owners with the best small business loans and lines of credit on the market today, but it does not lend money itself.
Because Fundera is a marketplace, it can offer nearly any type of business loan or line of credit available today. This includes loans through the Small Business Administration, which tend to come with flexible repayment terms and affordable interest rates.
Loan amounts and repayment terms vary, but it’s possible to qualify for an SBA loan in amounts up to $5.5 million. You may also be able to repay your loan over a period of up to 25 years, although it can take two weeks to get your loan funded. Note that SBA loans may require collateral, and that’s especially true for larger loan amounts.
