The best small business loans and how to get one
• JPMorgan Chase commercial lines of credit are good for small businesses with large working capital needs. These loans start at $ 500,000, with a variable interest rate. What is the Application Process For A Payday Loan? You will need to visit the website to apply.
• The Chase Business Quick Capital Loan is an innovative loan program with a fully digital application and approval process. Choose your funding amount, term length, and daily or weekly repayment options. Once approved, the funds will be available in your account the same business day.
Best For: Small businesses that don’t need an online application process, especially if they are looking for an SBA Backed Loan.
TD Bank is a great option for those who prefer to work with a service-oriented bank focused on small business lending. TD Bank offers small business lines of credit from $ 25,000 to $ 500,000. They also offer SBA-guaranteed loans with long-term funding and low equity requirements, including a USDA loan of up to $ 10 million designed to help finance businesses in rural communities. Note that TD Bank branches are primarily located on the East Coast and you will still need to apply in person.
Best Peer-to-Peer Lenders for Small Business Lending
Ideal for: The small business setting up but looking to grow further.
LendingClub’s simple application process takes just a few minutes. Small businesses can borrow between $ 5,000 and $ 300,000 to buy equipment, hire employees, consolidate debt, and more. To qualify, you must have been in business for at least one year, have annual sales of at least $ 50,000, own at least 20% of your small business, and have fair or better personal credit. Repayment terms last from one to five years, with fixed interest rates ranging from 5.99% to 29.99%. Other fees are clearly stated and late payments will cost you $ 15 or 5% of your unpaid payment (whichever is greater), but there is no charge for early payments.
Best for: Established businesses looking to expand or create new jobs. Those with good business credit are looking for low APRs.
A major player in the world of peer-to-peer loans, Funding Circle allows businesses to borrow between $ 25,000 and $ 500,000, with rates ranging from 4.99% to 27.79%. Repayment terms range from six months to five years. To be eligible, your small business must generate $ 150,000 per year and have been in business for at least two years. Other fees are clearly described. Expect to provide your business and personal tax returns, bank statements, and all information about your debts.
Best for: The solo entrepreneur who cannot yet provide the documentation and analysis required by a traditional bank to be considered for a small business loan.
Prosper loans are not traditional small business loans, although they work largely the same as the lenders mentioned above. Instead, Prosper offers personal loans of up to $ 40,000 based on an entrepreneur’s personal credit score, which must be average or above average for approval. If your small business does not yet have an established track record, you might find the right loan here. Prosper offers fixed terms of three or five years, one-time monthly payments and no prepayment penalties. The downside is that you have to put your personal credit on the line.
Best Small Business Loans From Direct Lenders
Best for: Small business owners who need cash quickly and are confident they can pay back on time. You can get a loan here if your credit is not good, but you will pay a high rate for it.
You can get money quickly, sometimes in a day, from OnDeck, which lends up to $ 500,000 in term loans and up to $ 100,000 in lines of credit, with relatively little paperwork. With short (three to 12 months at simple interest rates as low as 9%) and long term (15 to 36 months with annual rates as low as 9.99%) loans and lines of credit ( annual interest rate as low as 13.99%, but up to 48.7%), small businesses have flexible choices here. The stipulations state that your business must have been in business for at least one year and must generate sales of at least $ 100,000 per year. OnDeck is a good option if you can get a low annual interest rate, but be careful if you can’t – if you have great business credit and are somewhat established, you might find a better rate elsewhere.
Best For: Small businesses that need a quick cash shot but don’t fit a typical mold and would likely be turned down by other lenders.