Small business financing is not one product but a category containing several fundamentally different instruments, each suited to specific business needs. Term loans deliver a lump sum at a fixed rate for a defined purpose. Lines of credit deliver flexible, revolving access to funds for working capital. SBA loans are slower and more paperwork-intensive but offer the lowest rates and longest terms for borrowers willing to wait. Equipment financing is collateralized by the equipment and prices competitively. Picking the wrong instrument is the most expensive mistake — using a high-rate revenue-based loan for what should be a lower-rate term loan can cost a business 10–20% of revenue.
The lenders below are organized by use case rather than ranked head-to-head. SBA-approved banks win on rate and term length but lose on speed. Bluevine wins on speed for lines of credit. Lendio wins on breadth as a marketplace. Funding Circle is the best fit for established businesses needing $25K–$500K term loans.
Compare lenders
The lenders below are ranked by editorial fit for this specific category, not by paid placement. APRs and product details reflect publicly available information at the time of research. Pre-qualifying with multiple lenders typically uses soft credit pulls and gives you the most accurate rate comparison.
| Lender · Best for | APR range | Loan amount | Min. credit | Fees | Funding | Terms | Soft pull? | |
|---|---|---|---|---|---|---|---|---|
| SBA-approved lenders Lowest rates · longest terms |
8.50% – 11.99% | $30,000 – $5,000,000 | 650 | SBA + lender fees | 30–90 days | 7 – 25 yr | No | Check rates → |
| Bluevine Fast lines of credit |
7.80% – 28.49% | $5,000 – $250,000 | 625 | Draw fees apply | Same day | 6 or 12 months | Yes | Check rates → |
| Funding Circle Term loans · established businesses |
7.49% – 27.99% | $25,000 – $500,000 | 660 | 3.49% – 6.99% origination | 3–7 days | 6 mo – 7 yr | Yes | Check rates → |
| Lendio Marketplace · multiple lenders |
8.00% – 35.99% | $1,000 – $5,000,000 | 600 | Varies by lender | 1–14 days | 3 mo – 25 yr | Yes | Check rates → |
APRs and product details reflect publicly available lender information; actual offers depend on credit profile, income, state, and lender underwriting. iLoans.ai may earn a commission if you apply through these links. Advertising disclosure.
SBA-approved lenders
- APR range
- 8.50% – 11.99%
- Loan amount
- $30,000 – $5,000,000
- Min. credit
- 650
- Fees
- SBA + lender fees
- Funding
- 30–90 days
- Terms
- 7 – 25 yr
Bluevine
- APR range
- 7.80% – 28.49%
- Loan amount
- $5,000 – $250,000
- Min. credit
- 625
- Fees
- Draw fees apply
- Funding
- Same day
- Terms
- 6 or 12 months
Funding Circle
- APR range
- 7.49% – 27.99%
- Loan amount
- $25,000 – $500,000
- Min. credit
- 660
- Fees
- 3.49% – 6.99% origination
- Funding
- 3–7 days
- Terms
- 6 mo – 7 yr
Lendio
- APR range
- 8.00% – 35.99%
- Loan amount
- $1,000 – $5,000,000
- Min. credit
- 600
- Fees
- Varies by lender
- Funding
- 1–14 days
- Terms
- 3 mo – 25 yr
Detailed lender reviews
Click a lender's "Check rates" button to be directed to that lender's site. Pre-qualifying typically uses a soft credit pull that does not affect your credit score; the lender's site will indicate the type of credit check used.
SBA-approved lenders
What we like
- Among the lowest small-business rates available
- Longest terms (up to 25 years for real estate)
- Government partial guarantee reduces lender risk
- Loan amounts up to $5M
What to watch for
- Application process is lengthy and paperwork-intensive
- Funding takes 30–90 days
- Personal guarantee typically required
- Specific use-of-funds restrictions
The cheapest small-business money available, in exchange for the longest application process. Worth pursuing for any borrower with time to spare and a use case that fits SBA program rules.
Bluevine
What we like
- Same-day funding for approved applications
- Soft-pull pre-qualification
- Lines of credit up to $250,000
- No fees to maintain unused credit line
What to watch for
- Higher rates than bank lines
- Short repayment terms (6 or 12 months)
- Draw fees on each advance
The leading non-bank line of credit for established small businesses needing working capital quickly. Faster than any bank but at a meaningful rate premium.
Funding Circle
What we like
- Bank-like rates for established businesses
- Term loans up to $500,000
- Predictable monthly payments
- No prepayment penalty
What to watch for
- Origination fees up to 6.99%
- Requires 2+ years in business
- Slower than some online competitors
A strong fit for businesses two-plus years old looking for a substantial term loan at near-bank rates. The origination fee structure means the all-in cost is meaningfully higher than the headline APR.
Lendio
What we like
- Connects to 75+ business lenders in one application
- Wide range of products: term, line, SBA, equipment
- Single application, multiple offers
- Free to use
What to watch for
- Final terms set by each lender
- Quality of offers varies
- Customer support handled by lender after match
Useful for business owners who want to compare multiple lenders in one place without filling out 10 separate applications. Works best for established businesses with at least one year of history.
How to choose the right loan
Small-business financing is not one product but a category containing five fundamentally different instruments. Picking the wrong instrument is usually the costliest mistake — borrowing through a high-rate revenue-based loan when you should have used an SBA loan can cost 10–20% of revenue.
- Match the instrument to the use case. Term loans suit one-time, defined-purpose borrowing (equipment, acquisition, expansion). Lines of credit suit recurring working-capital needs. SBA loans suit real estate, large equipment, and long-term capital. Equipment financing suits collateralizable equipment purchases. Merchant cash advances suit nothing — they're the most expensive product on this page.
- Always compare APR, not factor rate. Many business loans quote a "factor rate" or "interest rate" that is not the same as APR. A 1.3 factor rate over 12 months is roughly 50% APR. Always ask for APR; standardize the comparison.
- Apply through SBA when time isn't binding. SBA loans take 30–90 days to fund, which sounds slow until you compare it to the rate gap. An SBA loan at 9% versus a non-bank term loan at 18% on $200,000 over 5 years is $50,000+ in lifetime interest. The wait is the price of the cheapest money.
- Be skeptical of "guaranteed" approval. Legitimate business lenders qualify based on revenue, time in business, personal credit, and DTI. "Guaranteed" approval means you've found a high-rate lender that approves almost anyone — and prices accordingly.
- Check personal credit and personal guarantee terms. Most small-business lenders require both. Your personal credit score affects your business loan rate, and a personal guarantee means you're personally liable if the business defaults. Read the terms carefully.
- Consider the line vs. term decision carefully. Lines of credit cost more (when used) but cost nothing when idle. Term loans charge interest on the full balance from day one. For unpredictable working-capital needs, a line is usually right; for known one-time expenses, a term loan is.
Methodology
Frequently asked questions
What credit score do I need for a business loan?
For SBA loans and prime online lenders, typically 660+ FICO personal credit. For non-bank lines of credit and merchant cash advances, 600+ may suffice. Personal credit usually matters more than business credit for small businesses, especially newer ones.
How long does it take to get an SBA loan?
30 to 90 days from application to funding is typical. The longer end of that range applies to SBA 7(a) loans for larger amounts; SBA Express loans can fund faster. The trade-off for the lowest rates and longest terms is the lengthiest process.
Should I get a term loan or a line of credit?
Term loans suit one-time, defined-purpose borrowing (equipment purchase, acquisition, expansion). Lines of credit suit recurring, variable working-capital needs. Many established businesses use both: a term loan for major investments, a line of credit for cash-flow gaps.
Can I get a business loan as a startup?
New businesses (under 2 years) face limited options. SBA microloans, Lendio (which routes to startup-friendly lenders), and credit cards are the realistic paths. Most term and SBA loans require 2+ years in business.
What is a merchant cash advance and should I avoid it?
A merchant cash advance is a lump-sum payment in exchange for a percentage of future receivables, typically priced at effective APRs of 40–150%. It is among the most expensive forms of business financing. Use only when no other option exists and only for short-term cash-flow gaps.
How is APR calculated on a business loan?
Business loans often quote a "factor rate" or "interest rate" that is not the same as APR. Always ask for the APR, which includes fees and standardizes comparison. A 1.3 factor rate over 12 months equals roughly 50% APR, not 30%.
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