5 Loan Providers for Small Businesses

It is exciting to run your own small business! But let’s be real- it takes Money to make Money! And not all of us have a secret money plant to fund our idealistic plans. Whether you are thinking of starting a new venture, expanding your current operations, or just need help maintaining your day-to-day expenses, having access to helpful funding will always prove to be beneficial.

But here’s the catch- not all business loans are created equally- some offer low interest rates while others offer great perks that tempt you to give in. Where some take months to complete the process, and others just accept them in 24 hrs. What is the right choice in these cases? What should you go for? Let’s figure it out by getting to know some of the Loan Providers for Small Businesses.

 1. SBA Loans

If scoring low interest rates is your agenda, then SBA Loans is your match. Although, this U.S. Small Business Administration (SBA) doesn’t directly lend you money but partners with banks and lenders to offer gov-packed loans with lower interest rates.

• Loan Amount: Up to $5 million
• Interest Rate: Typically between 5% – 10%
• Repayment Terms: Up to 25 years

Pros: It offers a low interest rate as compared to other alternatives, along with longer repayment terms. Also, it is available for a variety of business expenses. 

Cons: It has a lengthy approval process which can take from weeks to months. Another mandatory thing is that it requires a strong credit and financial history. 

Loan centers 

1. Commercial Loan Service Center: Fresno, CA, and Little Rock, AR
2. National Guaranty Purchase Center: Herndon, VA
3. Sacramento Loan Processing Center: Sacramento, CA
4. Loan Guaranty Processing Center: Citrus Heights, CA, and Hazard, KY

2. OnDeck

Don’t have time? Go directly to OnDeck. OnDeck is known to specialize in providing quick business loans capital being credited within 24 Hrs. stands out as a leading provider of tech solutions, offering a diverse and extensive product range.

• Loan Amount: Up to $250,000
• Interest Rate:  Starts at 9%
• Funding Time: Same-day or next-day funding.

Pros: It offers a very fast approval process, often within a day or a few hours. Additionally, like others, you don’t need to have a perfect credit score. Also, it is an instant and efficient solution for short-term business needs like landlord insurance.  

Cons: Unfortunately, it offers a higher interest rate than traditional banks. Moreover, the repayment terms are usually up to 24 months. 

Location:

1. Primary Office: Chicago, Illinois
2. New York Office: New York, NY
3. Denver Office: Denver, CO 

3. Lendio

If you are a skeptic like me, you need to get help from lendio. Lendio is like the Expedia of business loans, and it lets you compare multiple loan options from different lenders. With this, you can meet the right lender and fulfill your particular business needs. 

• Loan Amount: $5,000 to $5 million
• Loan Types Available: SBA loans, term loans, lines of credit, equipment financing, and more
• Approval Time: Typically 1-2 days

Pros: A healthy competition means a variety of feasible and diverse deals. Also, the lenders offer competitive interest rates. And the best part is that it is available for businesses with various credit levels.

Cons: Since it is not a direct lender, the approval always depends on the chosen lender. Also, some loans come with higher fees.

Location

1. Lendio, Utah
2. Lendio, New York State

4. Fundbox

Fundbox- a platform that offers credit and payment as a service to small businesses. It is most useful when you don’t need a lump sum loan capital but rather prefer flexible access to cash. It breaks the traditional process to make something more feasible for the customer’s needs. 

• Credit Line Available: Up to $150,000
• Interest Rate: Starts at 4.66% per draw
• Funding Time: As fast as 24 hours

Pros:  This platform offers quick funding and an easy approval process. Moreover, you only need to pay interest on the amount used and not the whole package deal seen in others. This makes it a great option for covering cash flow gaps. 

Cons: If compared to others, it offers lower loan amounts. Another drawback is their short repayment terms, usually settling it around 12 to 24 weeks. 

Location

1. Fundbox: Dallas, Texas, USA
2. Fundbox: New York, New York, USA
3. Fundbox: San Francisco, California, USA

5. Bluevine

Usually, when we think of a loan, the first checkmark that comes to our mind is- Credit score. A bad credit score means no Loan! Does it? Because now, you can apply for a loan without worrying about your score on Bluevine. It is a good option for startups, small businesses, or newer businesses.

• Loan Amount: Up to $250,000
• Credit Score Required: 600+
• Funding Time: Same-day approvals possible

Pros: It is a boon for businesses that don’t qualify for traditional loans. On top of that, it offers fast funding, often completed within a day. And you don’t have to worry about long-term commitments. Making everything possible! Right?

Cons:  Since it doesn’t follow traditional banking rules, it also doesn’t have to go with the traditional interest rates- making their cost a little higher than the rest. Also, this will not be an ideal choice for customers looking for long repayment terms.

Location

Bluevine has offices in the United States, Israel, and India.

1. Bluevine: Jersey City, NJ
2. Bluevine: Redwood City, CA
3. Bluevine: Holladay, UT
4. BluevineTel Aviv-Yafo: Israel
5. Bluevine Bar-Lev High Tech Park: Israel

Conclusion

When it comes to loans, each consumer has its own demands and needs. While some need instant loans, others look for low interest rates. On the one hand, a business might demand a long repayment option, while on the other, they prefer flexibility. 

So, choose the plans and the lender as per your needs. But here’s the deal- before choosing your loan, compare interest rates and repayment options as well as all the terms and conditions because even a small clause can break or make the choice.