Best Small Business Loans of 2023

Lendio is the best business loan company for most businesses. That’s because Lendio is more like a loan matchmaker than a lender—which is great news for you.

All you have to do is fill out a 15-minute online application, then Lendio will use your loan application to match you with the right loans and lenders for your business. Within 72 hours, it gives you a list of loans you qualify for; you can choose the best loan and finalize things.

Lendio partners with over 75 lenders (including some on this list), which improves your odds—not to mention your efficiency. Those lenders offer everything from short-term business loans to merchant cash advances to equipment financing to real estate loans. (The table above shows just a small sampling of Lendio’s financing options.)

Given its many options and personalized loan matchmaking, Lendio should be a no-brainer for just about any business.

Kiva exclusively offers microloans—in this case, loans under $15,000. A lot of small businesses will want a larger loan, which is why Kiva isn’t in our top five. But if you’re in the market for a little loan, then it’s hard to go wrong with Kiva—it offers an unbeatable 0% interest rate. The catch? There’s a lengthy funding process that requires you to get your family and friends to contribute to your loan before you crowdfund the rest.

Still, that 0% interest rate makes Kiva a worthy crowdfunding platform for anyone who needs a smaller loan (and can wait a while to get it).

If you need funding right away―like you can’t wait two days―Bluevine is the lender you want. It offers same-day funding with its line of credit and next-day funding through invoice factoring. Put simply, it’s fast.

It all starts with an automated application process. You submit information about your business, and Bluevine can make a decision on your loan application near instantly or within a few hours. Then, if you opted for the line of credit, you can pay a small wire transfer fee to get your funds in just a few more hours. Otherwise, your funds should show up the next day via ACH transfer.

And to be clear, Bluevine has more going for it than just fast funding times. It offers two flexible kinds of working capital, lines of credit and invoice financing. And while it has stricter revenue requirements than other lenders on this list, Bluevine has relatively lax application requirements otherwise―three months in business and a 530 personal credit score can get you invoice factoring.

That means that whether you need fast funding or just good working capital, Bluevine can help.

Fundbox offers lines of credit. But unlike other lenders that offer lines of credit, Fundbox is willing to work with young startups. So if your business is too new to get financing from other lenders, take a look at Fundbox.

While Fundbox prefers to work with businesses that have been around for at least six months (which is already a pretty competitive requirement), it will work with even younger businesses in some cases. In fact, Fundbox will consider businesses that have just two months of accounting software history or just three months of business checking history.

Of course, Fundbox is more likely to work with your very young business if you exceed its other borrower requirements. Fortunately, those are pretty moderate too. Fundbox accepts 600 credit scores and $100,000 in annual revenue.

While Fundbox’s lines of credit aren’t the cheapest out there, its accessibility makes it a great option for businesses that can’t qualify for low-interest term loans.

If your business uses Square payment processing, then you should check out Square Loans.

Basically, if you process enough credit card sales through Square, its algorithm can decide if you qualify for a short-term loan. In that case, a loan offer will appear on your dashboard, and you can borrow money with no credit check and no collateral (for amounts less than $75,000). And after finalizing your application, you can get funded by the next day.

As we said, though, it’s the algorithm that decides. You can’t manually apply to get a loan from Square, so it’s not a sure bet. You’ll have better odds of getting a loan offer if you’ve used Square for at least one year and process at least $10,000 a year (so don’t sign up for Square just to try for a loan). And watch out, as Square's fees can get pricey.

Still, for businesses that already do lots of Square payment processing, a Square Loan gives you an easy way to get a loan with no credit check.

Don’t think you’ll qualify for a small-business loan quite yet? Try a personal loan from Avant instead.

Unlike many personal lenders, Avant lets you use its personal loans for your business. And since it’s a personal lender, not a business lender, Avant doesn’t care about things like your business revenue and business age (as long as you meet other requirements, of course). That makes Avant easier to qualify for than many lenders on this list.
But Avant’s personal loans max out at well under $50,000, making them too small for many business uses. And while the starting APR isn’t that high, you can definitely find cheaper business loans. So overall, we do recommend using a business loan if you can.

But if you want to use a personal for your business, Avant is the best lender to do it with.

There’s a lot to like about Upstart, and we’re not the only ones to think so: Upstart has the best customer reviews of the lenders on this list.

Upstart has a 4.9 out of 5 on Trustpilot, giving it an excellent score.¹ That’s not from a handful of customers, either― 32,000 people have reviewed Upstart, with 97% of them giving it an excellent score.

What do these rave reviews say? Well, they praise a lot of the things you’d expect: fast approval and funding, helpful customer service, and fair pricing. (We saw many reviews praising Upstart’s competitive rates and fees.) In other words, people like pretty much everything about Upstart―even though it doesn’t have the lowest rates or the biggest loans.

If you’re looking for a tried-and-true lender for your personal loan that also happens to have a super low credit score requirement, then give Upstart a try. See our full review here.

We think the five lenders above have the best loans for most businesses. But the following lenders have plenty going for them as well. So if you haven’t found the right lender yet, consider these honorable mention picks.

If you’re interested only in SBA loans, then give SmartBiz a try. It claims to simplify the SBA application process with its loan marketplace. Much like Lendio, SmartBiz delivers your one application to multiple lenders, matching you with your best options. But unlike other lending marketplaces, SmartBiz deals exclusively in SBA loans. That makes its application requirements stiffer, but it also means you can get super low rates.

If your business meets the qualifications for SBA loans, use SmartBiz to streamline your application process.

Kabbage offers only lines of credit. Much like Fundbox, Kabbage has an automated application that just requires a connection with your bank account. That means you can get a response to your application in mere minutes, making Kabbage a fast, convenient way to apply for funding. But the application is just the beginning. Once you’re approved, Kabbage lets you access your line of credit through PayPal, your bank account, or a physical card. With PayPal, you can access funding in minutes.

So while Kabbage has high rates, its convenience makes it good for business owners that need fast, accessible working capital.

Lendr only offers non-loan types of working capital―invoice factoring and merchant cash advances, to get specific. Those types of funding come with higher costs and shorter repayment terms than traditional loans. But they also come with low credit requirements, making them an important source for some businesses. And Lendr is a better working capital provider than most. It’s got excellent reviews and fair borrower requirements.

Put simply, Lendr’s types of funding aren’t our favorite. But if you need working capital financing, Lendr is one of the better providers we’ve found.

As you’ll see throughout this article, you’ve got tons of business financing options. So how do you choose the right lender and loan type for your business?

We suggest you consider a few key factors as you look at lenders:

• Borrower requirements
• Types of financing offered
• Loan amounts
• Rates and fees
• Funding times

Borrower requirements may be the most obvious way to tell if a lender will work for you or not. After all, if a certain online lender only funds businesses that have been around for three years, and you’ve got a one-year-old business, you’ll know to move on to a different lender. The same applies to things like minimum credit scores and revenue requirements.

Then you can look at what kinds of financing a lender offers. If you have your heart set on a business term loan, for example, you won’t want to go with a lender that has just merchant cash advances. Likewise, if you just want a short-term loan to free up some cash flow, a lender with super long loan terms may not be the best fit. 

And of course, the same thing applies to loan amounts. You’ll want to find a lender that offers a large enough loan size for your small-business financing needs.

Once you’ve narrowed your choices down a bit, you’ll want to start looking at loan costs. In most cases, you’ll want to look for the lowest interest rates and fewest fees.

Finally, funding times can help you further narrow things down. If you’re not in a big rush, most lenders can work just fine. But if you need to grab a time-sensitive deal on inventory, for instance, then you’ll probably want a lender that can get you money ASAP.

We researched more than 60 online and traditional lenders to come up with our list of the best small-business loans. We scored lenders based on factors such as loan amounts, interest rates, borrower requirements, customer reviews, funding times, and more. These scores formed the basis of our rankings as well as our recommendations.