DollarGeek Presents:

Best Small Business Loans - December 2022

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As a business owner, small business loans can be an important option to think about. Aside from traditional banks, online lenders give you flexible options that are also very competitive. The many options online lenders now provide you can range from invoice based financing, business lines of credit and SBA loans. Make sure to learn more about the different options before choosing the right business financing product. 

Showing 1-4 of 4 accounts
OVERALL RATING:
(4)
on OnDeck's secure site

Estimated APR

29.9% - 65.9%

varies on credit

Min. Credit Score

625

APR Range

29.9% - 65.9%

+ Show More Details
OVERALL RATING:
(3.5)
on Kabbage's website

Estimated APR

24% - 99%

varies on credit

Min. Credit Score

620

APR Range

24% - 99%

+ Show More Details
OVERALL RATING:
(3.5)
on Fundation's website

Estimated APR

8% - 30%

varies on credit

Min. Credit Score

620

APR Range

8% - 30%

+ Show More Details
OVERALL RATING:
(3.5)
on Street Shares' website

Estimated APR

9% - 40%

varies on credit

Min. Credit Score

600

APR Range

9% - 40%

+ Show More Details
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What Is A Small Business Loan? 

As a business owner, small business loans can be an important option to think about. Aside from traditional banks, online lenders give you flexible options that are also very competitive. The many options online lenders now provide you can range from invoice based financing, business lines of credit and SBA loans. Make sure to learn more about the different options before choosing the right business financing product. 

Steps To Applying For A Small Business Loan

To apply for a business loan, you’ll need to complete the following steps:

1. Type of loan: Before applying for a loan, determine what type of loan you need. Some lenders will only lend to certain industries or specific uses for the loan funds. You should also take into account how much you need to borrow, since this can affect how you apply for a loan and which lenders to approach.

2. Credit: When evaluating a loan application, lenders generally look at a business owner’s personal credit score. To qualify for an SBA loan or a traditional bank loan, you must have a credit score of 680, while for equipment financing or business lines of credit, you should have a score of 630. Generally, merchant cash advances and short-term financing require less stringent requirements—averaging about 600 and 550, respectively.

3. Research: Identify your current bank’s small business loans that meet your needs when shopping for a small business loan. You will be able to streamline the application process since your financial data will already be on file. Next, compare loan amounts, repayment terms and rates with other banks, credit unions and online lenders.

4. Documents: Documentation requirements vary by lender. However, most lending institutions require a business plan, personal and business bank statements for at least 12 months, tax returns for at least two years, and details about current and past business loans. In addition, lenders require copies of business licenses and legal documents, details about collateral and details of the use of loan proceeds.

5. Application: A formal loan application must be submitted once you’ve researched the best small business loans and prepared your business for due diligence. It is important to familiarize yourself with the application process and contact customer service if you have any questions.

Best Small Business Loans Overview:

on Kabbage’s secure site

5/5

Kabbage offers small business’ an opportunity to get the money they need fast. With only a $50,000 annual revenue requirement you can open a line of credit. If your business doesn’t have the best credit history you should give Kabbage a look.

Min. Credit Score

Annual Revenue

Age Of Business

Collateral

Loan Term Length

Repayment Terms

DollarGeek Favorite

None

$50,000+

1+ years

None

6 or 12 months

Monthly

Up to $250,000 line of credit

on LendingClub’s secure site

5/5

LendingClub is a great peer to peer lending network that will help small business’ get the funding they need quickly. LendingClub offers loans and lines of credit for up to $300,000 and terms up to 5 years. You can receive your funds anywhere from 2-14 days on average. 

Min. Credit Score

Annual Revenue

Age Of Business

Collateral

Loan Term Length

Repayment Terms

DollarGeek Favorite

600+

$50,000+

1+ years

Only when borrowing $100,000+

1-5 years

Monthly

No prepayment penalty

on OnDeck’s secure site

5/5

OnDeck can provide business’ with the money they need fast. With a high approval rate and a minimum credit score of 500 they’re worth a look.

Min. Credit Score

Annual Revenue

Age Of Business

Collateral

Loan Term Length

Repayment Terms

DollarGeek Favorite

500+

$100,000+

1+ years

Business lien required

3-36 months

Daily or weekly

High approval rates

on Fundation’s secure site

5/5

Fundation offers flexible loan terms for small business’. If you need fast funding and flexibility on your loan terms Fundation can be a great place to look. You will be placed with a relationship manager that will help you with your loan. 

Min. Credit Score

Annual Revenue

Age Of Business

Collateral

Loan Term Length

Repayment Terms

DollarGeek Favorite

None

$50,000+

1+ years

None

1-4 years

Monthly

Up to $250,000 line of credit

on StreetShares’ secure site

5/5

Street Shares is a good option for small business’ that need to borrow under $100,000.  Street Shares offers borrowers a variety of loans like credit lines, invoice factoring and term loans. If you’re a new business (1+ years) and have at least $25,000 in revenues make sure to give Street Shares a look.

Min. Credit Score

Annual Revenue

Age Of Business

Collateral

Loan Term Length

Repayment Terms

DollarGeek Favorite

600+

$25,000+

1+ years (or 6 months if your business has $100k in revenue)

None

3-36 months

Monthly

Up to $250,000 line of credit

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