It’s no surprise that nearly half of small businesses requested a loan last year. Last year, 43% of small businesses filed an application to a small business lender, according to the Federal Reserve’s Small Business Credit Survey.
A small business loan is obtained by submitting an application to a business lender, usually your bank or another lending institution, together with the necessary papers and a business plan.
A business loan can assist in resolving cash flow issues, leveraging expansion prospects, and even increasing a company’s value. It’s critical to plan ahead of time for a loan, as well as to be aware of the papers that your lender will require when you apply. Payroll, new equipment, and nearly anything else that helps a business development is covered by small business loans.
We chose the finest small business loans of 2021 for this list because they offer affordable rates, fair repayment terms, and fees for qualified borrowers:
1. BlueVine
BlueVine is a financial technology company, not a bank, that provides small businesses with business checking, business loans, and invoice factoring. Their cost-effective invoice factoring solution enables cash-strapped firms to increase their credit limits by giving 85-90% of the money upfront.
BlueVine invoice factoring offers up to $5 million with a weekly interest rate of 0.25 percent. Minimum requirements include a 530 FICO score, three months in the company or more, $10,000 in monthly income, and a B2B enterprise (business to business).
Advantages:
- Quick approvals
- To qualify, you must have a minimum FICO score of 530
- For loans originated in 2020, a PPP loan forgiveness application is now accessible
2. OnDeck
OnDeck term loans are distinguished by their quick funding, loyalty, and prepayment advantages. If you already do business with this lender, they will waive any lingering interest rates and even waive the origination cost if you take out a new business loan.
Prepayment perks from OnDeck allow borrowers to pay off their loan in full while having the remaining interest eliminated without incurring any additional expenses. OnDeck, on the other hand, takes a blanket lien on all of a company’s assets and requires borrowers to sign a personal guarantee, which states that the lender can go after the borrower’s personal assets if the loan is not paid.
Advantages:
- $100,000 credit lines and $250,000 small company loans are available
- In minutes, you may apply for a loan online and have it approved
- A minimum credit score is required
3. Fundbox
Fundbox is a small business lending platform driven by AI that offers lines of credit and short-term loans. According to the company, you may get a credit decision in as little as three minutes, making it one of the quickest ways to get accepted for a small business loan with an online lender today.
Borrowers can connect their business accounts to the Insights Advantage software to get cash flow estimates, examine balances, and simulate business situations by inputting possible transactions. To be eligible for a line of credit, the company must have used a relevant business bank account for at least three months prior to applying.
Advantages:
- Lines of credit of up to $150,000 are available
- There are no minimum credit score or income criteria
- There are no consequences for paying in advance
4. Funding Circle
For qualified applicants, Funding Circle offers small business loans with fixed interest rates beginning at 4.3% per year, which is still lower than other short-term small company lenders. Within an hour of submitting your online application, you’ll be contacted by a loan consultant who will assist you in determining the best option for your company.
Funding Circle loans have set monthly payments, and if you pay off your loan early, you won’t be charged an early payment penalty. A lien on your business assets is also required, as well as a personal guarantee from the key business owners.
Advantages:
- Loans of up to $684,000 are available
- Online application with disbursement in three business days or less
- There is no requirement for a minimum revenue
5. National Funding
National Funding offers a variety of loan choices, including low-credit small business funding. Borrowers must have a personal credit score of 500 for a direct loan (one of the lowest minimum scores among this type of lender) and 475 for renewals to qualify for a loan with National Funding.
National Funding evaluates the annual business revenue, bank account, and years in operation when granting approval. You can apply online and have your loan approved the same day, with funds available in as little as 24 hours.
Advantages:
- With no upfront expenses, you can borrow up to $500,000
- Discounts for early payment
- Loans are available for 6 to 15 months
Final Thought
When choosing which business loan tool to use, you need to do sufficient research. Make sure of your state requirements as well as the type of loan your business needs.
