Holly Johnson is a freelance contributor to Newsweek’s personal finance team, which focuses on credit cards and rewards, money products, and Credit Cards.
Robert is an editor at Newsweek and specializes in a variety of non-public finance topics, including credit cards, lending, and banking. Prior to Newsweek, he worked at Bankrate as a small business loan editor and as a credit card editor and editor. He has also written and edited for CreditCards. com, The Points Guy and The Motley Fool Ascent.
Editorial note: The reviews expressed here are those of the author and not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the publication.
An online business loan can provide you with an inflow of money to cover a variety of needs, from starting a business to making an investment in the inventory, equipment, and materials needed to help your business grow and thrive. Many of the most productive online business loans offer streamlined programs and fast funding. They also tend to be more readily available than classic banks or credit unions, making them better suited if you have bad credit or are just starting your business.
This consultant highlights some of the most productive online small business loans presented through the most sensible lenders, with loan amounts, interest rates, fees, and eligibility requirements. If you want an online business loan now, the lenders below might be the most productive fit.
Verified Vault
Loan Amount
From $5,000 to $250,000
Loan Term
Up to 24 months
Min. Credit Score
625
TAEG Range
Not disclosed
Earliest Funding Time
Same-day financing available
Min. Requirements
A year in a company; $100,000 Annual
OnDeck business lines of credit can be funded once approved, and term loans can fund same-day loans up to $100,000 if you apply Monday through Friday before 10:30 a. m. m.
Verified Vault
Loan Amount
Up to $10 million
Loan Term
Up to 30 years
Min. Credit Score
560
TAEG Range
Varies by lender
First moment for financing
From 24 hours
Min. Requirements
Varies by lender
Lendio is a business loan comparison site that saves you time and effort by comparing lenders and loan features in one place. Business owners can use Lendio to compare term loans, lines of credit, appliance finance loans, invoice factoring features, and more. The platform has funded more than $12 billion in loans so far.
Vault Verified
Loan Amount
$2,000 to $250,000
Loan Term
6 to 24 months
Min. Credit Score
660
Cool
Varies*
First moment for financing
1 to 3 calendar days
Min. Requirements
Must have started your business at least a year ago; At least $3,000 monthly business revenue
American Express offers a small business line of credit with low monthly revenue source requirements, a fast and undeniable application process, and flexible repayment terms that can last from six to 24 months. All companies are proprietary and subject to approval and review.
*Costs:
Verified Vault
Loan Amount
Up to $500,000
Loan Term
Up to 10 years
Min. Credit Score
660
TAEG Range
Undisclosed
Anticipated Investment Term
From 24 hours
Min. Requirements
Two years in business; $50,000 annual business revenue
Funding Circle’s source of income requirement ($50,000 annual source of income) is much lower than that of other lenders. Commercial homeowners have several types of loans to obtain, and lender term loans offer extended repayment terms of up to 84 months.
Verified Vault
Loan amount
Up to $6 million
Loan Term
Up to 36 months
Min. Credit Score
As low as 525
TAEG Range
Varies
Earliest Funding Time
48 hours
Min. Requirements
Varies
Biz2Credit offers a diversity of business financing features with maximum loan amounts and potentially fast approval. Commercial real estate loans can reach up to $6 million, and repayment terms are short.
Verified Vault
Loan Amount
Up to $15 million
Loan Term
Up to 25 years
Min. Credit Score
Not Indicated
APR Rank
Subject to SBA maximums
Earliest Funding Time
Not indicated
Min. Requirements
Not indicated
Live Oak is a cloud-based virtual bank with a long history of offering affordable SBA loans. As of 2018, it is the most sensible SBA 7(a) lender in terms of loan number and is a lender capable of offering SBA loans faster. than other lenders.
Verified Vault
Loan Amount
Up to $150,000
Loan Term
12 to 24 weeks
Min. Credit Score
600
TAEG Range
Varies
Earliest Funding Time
Next Business Day
Min. Requirements
Six months in business; Annual revenue of $100,000
Fundbox offers lines of credit in amounts up to $150,000. With only six months in business and $100,000 in annual revenue required, this lender even works for newer companies who need a short-term business line of credit.
Verified Vault
Loan amount
Up to $15,000
Loan Term Length
Up to 36 months
Min. Credit Score
None
TAEG Range
0%
First moment for financing
Up to 30 days
Min. Requirements
No timing or annual business revenue requirements; no foreclosures, bankruptcies or liens against your property
Kiva provides microloans to small businesses that want financing up to $15,000 and with a 0% annual interest rate to get started. Applicants can also market their small business among the more than 1. 6 million individual lenders that offer financing on the platform.
Verified Vault
Loan Amount
Up to $250,000
Loan Term
6 or 12 months
Min. Credit Score
625
TAEG Range
From 6. 20%
Anticipated Investment Term
A few hours with a bank wire and wire fee of $15; ACH as soon as the next business day
Min. Requirements
Two years in business; $40,000 in monthly income
Established businesses with sizable annual revenue only need a credit score of 625 to qualify for Bluevine’s business line of credit. And you can get a decision in as little as five minutes.
Online small business loans may require another bureaucracy with different loan amounts, repayment terms, interest rates, and repayment structures. What makes all those financing features similar is that online small business loans are filed through virtual lending corporations without the need for an in-person bank or lender.
Online business loans can be used for a variety of business-related purposes, adding payroll expenses, purchasing stock or supplies, pricing related to marketing or hiring new employees, or normal business expenses that want to be paid off immediately. Some online business loans come with consistent repayment terms with consistent monthly payments, while others allow business owners to borrow money and pay it off as needed.
Although borrowing money online for business purposes is rare, even large domestic lenders may offer the option to apply for secure business loans online. For example, Bank of America allows consumers with a Bank of America online banking ID to apply online. for some of your credit products. And Wells Fargo will offer an online application for your ad line of credit, but only up to $100,000.
Online lenders that operate only online with no physical branches tend to offer more competitive interest rates, lower loan fees, and a more comprehensive variety of loan options. Online lenders also tend to offer a more streamlined application procedure that lends itself to faster investment times as early as the same day or within a few days of approval.
Online business loans come in many other forms, with some offering more predictable terms than others. Some small business loan features even allow you to borrow only what you want when you want it and then base your monthly bills on how much you have to pay. and how long you want to pay back the money.
Business term loans work in the same way as other types of installment loans. You can borrow a set amount and pay it back over a set period of time. Interest rates tend to be competitive for this type of loan because they are more predictable. However, the minimum eligibility requirements may also be higher to qualify for the most productive rates and terms.
While term loans vary in length and scope, many lenders allow applicants to borrow between $5,000 and $2 million and pay off the cash over a period of six months to 10 years.
A small business line of credit works better than term loans because it allows business owners to access a pre-approved line of credit only when they want it. This allows business owners to borrow the exact amount they need and issue invoices based on those amounts. .
While business lines of credit can vary depending on the lender, they are generally smaller amounts, between $1,000 and $250,000. Online lenders’ repayment terms tend to be shorter (usually up to 24 months) and interest rates can be higher. than what is located with term loans.
This type of financing, also known as AR financing, allows business owners to borrow in lieu of their accounts receivable or unpaid expenses and get a cash refund immediately. This type of financing allows business owners to convert the cash their consumers owe them into instant capital that they can use to pay for their expenses or invest in the business.
Like other business loan options, accounts receivable financing comes with interest rates that vary, a diverse set of fees and eligibility requirements that depend on the loan company. Loan limits also depend on the amount of outstanding invoices available to borrow against.
Since accounts receivable financing uses a company’s unpaid invoices as collateral for the loan, eligibility requirements (especially credit requirements) tend to be minimal.
While accounts receivable financing lets business owners borrow against their unpaid invoices, invoice factoring sells outstanding invoices to a third party in exchange for cash. This type of financing leads to the business owner getting a lump-sum payment, although variable factor rates and discount fees must be paid along the way.
Like accounts receivable financing, invoice factoring requires very few credit terms or minimum business revenue. This makes it a solid option for corporations that are owed cash but don’t meet the eligibility criteria for other types of financing.
A merchant cash advance is a type of business financing that lets companies borrow against their future revenue. This means that traditional eligibility requirements typically do not apply, and that a merchant cash advance can work for business owners with imperfect credit as long as they can provide concrete proof of future sales.
While loan amounts and terms vary widely for this type of financing, it’s conceivable to discharge a business money advance ranging from $5,000 to $500,000. The problem is that business money advances can be expensive and are usually used as a last resort when small business owners can’t qualify for a lower-cost form of financing.
Government-backed SBA loans tend to require longer programs and overcome more hurdles to be approved, and investment can take up to a few months. But loan amounts can be much higher (up to $5 million) and repayment terms can range from 10 to 30 years.
Eligibility requirements for SBA loans tend to be stricter, and you may need at least two years of activity, a credit score of 600 or higher, and a minimum monthly turnover of $8,000 or more to be approved for SBA 7(a) and 504 loans. But eligibility can be much simpler when applying for SBA microloans.
Business acquisition loans are used to acquire an existing business or franchise and can range in amount from $5,000 to $5 million. The interest rates, fees, and other terms on those loans will likely vary depending on the lender.
Start-up loans were created for entrepreneurs who need capital to get a new business idea off the ground. These loans can come in many different forms, including term loans, business lines of credit, equipment financing or a business cash advance, and their rates and eligibility requirements vary as a result.
Commercial equipment financing loans were created specifically for business owners to invest in the new gadgets they need. These loans are popular in industries that require large investments in expensive appliances and supplies, including agriculture, manufacturing, transportation, catering, and the medical industry.
Loan amounts, rates, and other terms vary for appliance finance loans; Available loan amounts are sometimes based on the cost of the device required.
Business credit cards could also be suitable for businesses that want to make purchases and need some flexibility in how they pay for funds. Most business credit cards don’t come with limits as high as those presented through term loans and some lines of credit. But they have unique advantages. This can come with the opportunity to get money back and rewards, sign-up bonuses, and a grace period that can also help you avoid paying interest if you pay off your balance in full each month. Most business credit cards require smart and correct private credits.
An online business loan can be used at most for any business purpose, and it all depends on your company’s wishes. Some of the most common reasons to borrow cash with an online small business loan include:
With so many business loans available today and other loan amounts, repayment terms, and eligibility requirements for each, it’s wise to do some research before applying for business financing. The main points to consider are:
Online small business loans are offered in almost any amount. When applying for a small business loan, choose a lender that will give you the amount you need, but be sure to choose a loan amount you can afford. A business loan calculator can show you how much business loan you can get and also help you see how temporarily you’ll be able to pay off your debt.
Decide on the type of online business loan you want as well, whether you prefer to borrow a set amount and make fixed monthly payments or you want the flexibility of a business line of credit that lets you borrow money on an as-needed basis instead. If your credit isn’t great and you are willing to use outstanding invoices as collateral, you could even opt for accounts receiving financing or invoice factoring loans.
Decide how long you want and want to repay the amounts you borrow, and which features of the loan lend themselves to shorter repayment terms. For example, some business lines of credit only allow you to borrow cash for up to 12 or 24 months. while term loans and SBA loans can offer much longer repayment features.
Consider interest rates and loan fees for the types of loans you’re considering, and keep in mind that those points may depend on your personal credit score, business income, duration, and other important points of your application. Several lenders will help you find a small business loan with the lowest rates and fees imaginable that you could qualify for.
Some corporations that offer business loans online list their eligibility needs directly on their website, which is helpful in evaluating your chances of approval. Others are less transparent about their needs and will likely ask you to contact the lender for more details. Before applying for a business loan, make sure you meet the essential requirements, including your credit score, annual income, and business experience.
Decide why you want to borrow money and whether a business loan is literally necessary. This step can help you determine if you can make do with the budget you already have or how much you really want to borrow if you need a loan. Also keep in mind that some goals come with payday loan types, such as appliance financing loans for businesses that want to invest in new commercial appliances.
Find out whether business loans you’re considering require collateral, a personal guarantee or both. Collateral requirements can vary depending on the loan type. For example, both accounts receivable financing and invoice factoring require collateral in the form of unpaid invoices to qualify.
Most business loans also require a private guarantee, which means that the business owner is at fault for repayment even if the business goes bankrupt. Personal pledges also give commercial lenders the right to sue the non-public assets of business owners who default on their payments. your loans.
You may need a small business loan for an online business that doesn’t have a physical location. Small business loans can work for industries and businesses such as e-commerce, partner marketing, consulting, graphic design, online page development, and social media management. , and much more.
That said, not all applicants will qualify for business financing regardless of the type of company they own. Qualification depends on factors like personal credit, annual or monthly business revenue, time in business and more.
You can borrow money to start a small business, although you may be limited to lenders that offer start-up business loans. As an example, the U.S. Small Business Administration (SBA) offers microloans in amounts up to $50,000 that are geared to small businesses that need funding to start up or expand.
Most online small business loans require a credit check, some types of financing have much more flexible requirements. With invoice factoring loans that use a company’s unpaid invoices as collateral, for example, no credit check is required.
Holly Johnson is a freelance contributor to Newsweek’s personal finance team, which focuses on credit cards and rewards, money products, and Credit Cards.