Best Small Business Loans for 2022

Compare OnDeck, The Loan Exchange, Accion Opportunity Fund, and many other lenders. See rates, maximum loan amounts, required credit scores, and much more.

Updated on October 31st, 2022

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Updates:

Updated 13th of July 2021

Adjusted the table to include OnDeck, The Loan Exchange, and Accion Opportunity Fund in the top three positions, and included the latest credit score requirements.

Updated 3rd of February 2020

Added a table with the minimum credit score required by lenders and additional information on the different types of loans.

Small business loans are used to purchase equipment, inventory, real estate, or start a business. Small business lending includes bank loans, credit cards, venture capital, SBA-backed loans, microloans, and crowdfunding.

Our Pick

Ondeck

4.5 out of 5 overall

  • Apply in minutes.
  • Loans up to $250,000.
Also Great

The Loan Exchange

4.5 out of 5 overall

  • Loans up to $250,000.
  • Accepts lower credit scores.
Also Great

Accion

4.0 out of 5 overall

  • Loans from $5,000 - $100,000.
  • Considers lower credit scores.

Why We Chose OnDeck:

OnDeck is a reputable provider of small business loans that offers tailored loans, loyalty and repayment benefits, and transparent pricing. They provide quick and easy access to funds with same day funding.

The type of loans they offer includes Line of Credit, with a maximum loan amount of $100,000, and Term Loans, with a maximum loan amount of $500,000. Their interest rates range between 10.99% and 11.89%, and payment terms vary between 3 and 36 months.

OnDeck borrowers laud the company's efficient application process and excellent customer service. The daily and weekly payment options removes the burden of large monthly payments, while the fixed payments option helps borrowers manage their cash flow without any additional surprises.

Things to Consider When Evaluating Small Business Loans:

  1. Determine your risk level. Your debt-to-equity ratio will tell you whether you use debt to finance your business more than equity. A high debt value indicates that you're using too much borrowed money to sustain your business and will also limit your ability to obtain more debt.
  2. Compare loan providers to get the best deal. Look at their annual percentage interest rate, total borrowing cost, and repayment terms when making your decision.
  3. Some lenders will charge you extra costs like application fees, while others will not. Be wary of any hidden fees.

Best Small Business Lenders:

Rank

Name

Offer

Review

Learn More

1.

OnDeck

Loans up to $500,000

A reliable lender with a simple and efficient application process.

Learn More

2.

The Loan Exchange

Loans up to $250,000

A reliable lender that accepts low credit scores and offers a variety of loan types.

Learn More

3.

Accion Opportunity Fund

Loans up to $100,000

An excellent lender with low borrowing rates and good customer service.

Learn More

4.

Funding Circle

Loans up to $500,000

A good lending option with fixed monthly payments and no pre-payment penalties.

Learn More

5.

Kabbage

Loans up to $250,000

A highly recommended lender with reasonable interest rates and payment terms.

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6.

Bank of America

Loans up to $250,000

A great lending option with reasonable rates. Requires an upfront fee.

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7.

BlueVine

Loans up to $250,000

Offers fast loans and cash advances for small amounts. Some loan products are not available in all states

Learn More

8.

Capital One

Loans up to $500,000

An excellent lender that offers a variety of line of credit loan options.

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9.

Fundation

Loans up to $500,000

Provides fast access to funds and competitive rates.

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10.

Lendio

Loans up to $2,000,000

Offers fast access to small business loans but has high fees and interest rates.

Learn More

11.

Fundbox

Loans up to $100,000

An excellent lender that accepts low credit scores and provides cash flow assistance too.

Learn More

12.

LendingClub

Loans up to $500,000

A peer-to-peer option that has no pre-payment penalties and offers fast access to funds.

Learn More

13.

Wells Fargo

Loans up to $500,000

A trusted lender that offers reasonable interest rates. Requires a healthy credit score.

Learn More

14.

Lendr

Loans up to $500,000

A good option that has an easy application process and provides fast access to funds.

Learn More

Pricing information reviewed on July 12, 2021.
OnDeck vs. The Loan Exchange vs. Accion Opportunity Fund:

OnDeck offers both lines of credit and term loans, while The Loan Exchange and Accion Opportunity Fund only offer business term loans. OnDeck offers the highest loan term amount out of the three, with loan amounts capping at $500,000. In comparison, The Loan Exchange offers loan amounts of up to $250,000 and Accion Opportunity Fund offers loan amounts of up to $100,000.

However, OnDeck has the most stringent qualification requirements of the three, as Accion Opportunity Fund and The Loan Exchange have a notably low minimum credit score requirement.

If you have a good credit score and need a fair amount of funding quickly, you may want to go with OnDeck. They offer a fast application and funding process, and with a good credit score, you can get fairly reasonable rates.

If you need fast access to funding, The Loan Exchange is a great option. However, note that you are likely to be offered relatively high rates.

If you are not pressed for time but struggle to get funding through traditional channels due to a poor credit score, Accion Opportunity Fund may be the way to go. Although the time to funding can be lengthy, Accion considers more than just your credit score and can offer rates within reason.

OnDeck vs. The Loan Exchange vs. Accion Opportunity Fund Comparison:

Offer

OnDeck

The Loan Exchange

Accion Opportunity Fund

Loan products

Term loans & lines of credit

Term loans

Term loans

Max. loan amount

$100,000 (lines of credit) / $500,000 (term loans)

$250,000

$100,000

APR

From 35%

From 14.90%

5.99%—25.99%

Min. Credit Score

600

500

525 - 575

Minimum Credit Score Requirements:

Lender

Minimum Credit Score

OnDeck

600

The Loan Exchange

500

Accion Opportunity Fund

570

Funding Circle

660

Kabbage

No minimum.

Bank of America

600

BlueVine

600

Capital One

Unknown.

Fundation

600

Lendio

500

Fundbox

600

LendingClub

No minimum.

Wells Fargo

Unknown.

Lendr

Unknown.

Types of Small Business Loans:

Loan Type

Description

Interest Range

Max Loan

Business Line of Credit

A set amount of money that can be borrowed. A borrower can access funds up to the set limit when needed and only pays interest on the amount drawn from the line of credit.

7 - 25%

$1,000,000

Term Loan

A lump sum disbursed to a borrower upfront who then repays it with interest over a period of typically 1 to 5 years.

7 - 30%

$500,000

Short-Term Loan

A lump sum of money disbursed to a borrower upfront that must be repaid with interest over a set period of time.

9 - 40%

$250,000

SBA Loan

Low-cost business loans guaranteed by the Small Business Administration. Available through SBA-approved lenders.

4 - 6.75%

$500,000

Invoice Financing

Business financing option whereby borrowers use their outstanding invoices as the collateral for a cash advance.

8 - 30%

$500,000

Equipment Financing

Asset-based loans used to purchase or lease equipment.

8 - 30%

$500,000

Merchant Cash Advance

Lump sum disbursed upfront and repaid with a percentage of the business's daily credit and debit card sales.

1.2 - 2.0 (factor)

$250,000

Personal Loan for Business

Loan based on the borrowers personal credit and finances.

5.99 - 36%

$40,000

Pros and Cons:

Pros

  • Access to large amounts of funding.
  • Retain full business ownership.
  • Small business loans generally offer better rates than alternative sources of funding, like credit cards.
  • Interest paid on business loans is typically tax-deductible.

Cons

  • Loan qualification requirements can be very strict.
  • Small business lenders often require collateral to secure the loan.
  • If you have a low credit score the interest rates can be quite high.
  • The application and review process can be lengthy and require detailed financial and business information.

What is a weighted average APR?

Unlike a simple average that treats all numbers equally, a weighted average takes into account the relative importance of each value.

FAQs:

How do you qualify for a small business loan?

To qualify for a small business loan you'll need good credit scores, both business and personal. You may also need assets to use as collateral and may need to show business cash flow and revenue.

What credit score is needed for a small business loan?

640+ is widely considered to be the minimum, but assets, revenues, cash flow, time in business, and other factors can influence this.

Where can I get a loan to start a small business?

It depends on what you're after. There are many types of small business loans, including loans to cover equipment purchase, loans to help start a business, loans for buying commercial real estate, invoice financing and more. Decide what type of loan you need, and you'll be able to narrow your list of what lenders to consider.

Who are some small business loan lenders to consider?

Are Small Business Loans Hard To Get

Are small business loans hard to get?

It can be difficult to get a small business loan if your company has been in business for less than two years, has no significant revenue, has no collateral, or has bad or no credit. However, there are lenders like Accion Opportunity Fund that specialize in loans to businesses that don't meet these standards.

What are alternative business loans?

Alternative business loans include a business line of credit (similar to a credit card), loans from private lenders, invoice factoring - which allows you to borrow money in the amount that you expect to receive from a client in advance - and peer-to-peer lending. These are also known as non-traditional small business loans.

What companies specialize in alternative business lending?

What Do You Need To Apply For A Small Business Loan

What do you need to apply for a small business loan?

  • A detailed business plan.
  • Financial statements.
  • Business credit report.
  • Income tax returns.
  • Accounts receivable and accounts payable.
  • Collateral document.
  • Business licenses and registrations.
  • Articles of incorporation.
  • Copies of third-party contracts.
  • Franchise agreements.
  • Commercial leases.

Are business loans for small business available to startups?

It depends on what stage you're in. Typically a startup is in the very early stages of a business, often before there are revenues or collateral. You may qualify for specialized small loans for small business, but otherwise, you'll be looking for investment funding or alternative business loans.

What kind of small business financing loan should I apply for to buy work vehicles?

You'll probably want to apply for equipment loans, or a business auto loan like the ones Bank of America offers.

Is there anyone who makes loans to small business if I've been rejected by banks?

Try some of the alternative financial tech small business loan companies if you need a loan for small business and are having trouble with banks. These include Funding Circle, Kabbage, Lending Club, Accion Opportunity Fund, and others. They use new tools, such as crowdfunding, to make loans available to companies that might otherwise have trouble.

How can I get funding fast?

  • Short-term loan.
  • An express bank loan.
  • An Installment loan from an alternative lender.
  • A business credit card.
  • Use invoice factoring.

How can I get a business loan with no money?

You can use an unsecured business loan. With an unsecured start-up loan, your new business can get the money it needs without having to put down any collateral or use a cosigner. This is usually given to individuals with good credit history and rating.