Best Small Business Loans of 2023

If you’re in the market for a small-business loan, you’re in the right place.
Best Overall
Lendio
Lendio
Borrower Requirements:
  • pro
    550 credit score
  • pro
    $96,000/yr. revenue
  • pro
    6 mos. in business
Best for 0% interest
Kiva
Kiva
Borrower Requirements:
  • pro
    No min. credit score
  • pro
    No min. annual revenue
  • pro
    No min. time in business
See Loan OffersLoans available via Lendio marketplace
Best for Fast Funding
BlueVine
Bluevine
Borrower Requirements:
  • pro
    625 credit score
  • pro
    $120,000/yr. revenue
  • pro
    6 mos. in business
See Loan OffersLoans available via Lendio marketplace
Best for Low Credit
Fundbox
Fundbox
Borrower Requirements:
  • pro
    600 credit score
  • pro
    $100,000/yr. revenue
  • pro
    1 yr. in business
Best for Square users
Square
Square Loans
Borrower Requirements:
  • pro
    No min. credit score
  • pro
    $10,000/yr. revenue
  • pro
    1 yr. in business
See Loan OffersLoans available via Lendio marketplace

We use Lendio's marketplace to help business owners find which alternative lender has the best loan option for their unique needs.
Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
*Does not represent the typical rate for every borrower, and other fees may apply.

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.

Bottom line: Lendio offers the best loans for most small-business owners.

As a lending marketplace, Lendio partners with more than 75 lenders. Just fill out its 15-minute application, and within 72 hours, Lendio will get back to you with a list of loan offers. Pick your favorite option, finalize your application, and enjoy your new loan.

With all the financing options out there, trying to compare business loans can feel overwhelming. You can borrow from traditional lenders (banks or credit unions) to get the best deals, or you can borrow from online lenders for lower loan qualifications. You can choose from term loans, lines of credit, invoice financing, microloans, and more. It’s a lot. 

Which is why we’ve taken all those financing options and narrowed them down to the best small-business loans out there. In this roundup, we’ll tell you what makes these lenders great and help you decide which is the best fit for your business.

Ready to find your funding?

Have you been in business less than six months?

Your best chance of securing funds is with a personal loan because of their looser borrower requirements, but there are business loan options available.

We've included 2 options for businesses open for less than six months and/or make less than $100k in yearly revenue: Avant and Upstart.

Compare the best small business loan providers

Lender
Best for
Lowest listed rate*
Min. revenue
Min. time in business
Get a loan
Small-business loans4.25% interest$96,000/yr.6 mos.
Kiva
0% interest0% interestNo min. revenueNo min. time in business
Fast funding6.2% interest$120,000/mo.6 mos.
Square usersRates unlisted$10,000/yr.1 year
Low credit4.66% draw rate$100,000/yr.1 year
Personal loan9.95% APRNo min. revenueNo min. time in business
Personal loan6.5% interestNo min. revenueNo min. time in business

We use Lendio's marketplace to help business owners find which alternative lender has the best loan option for their unique needs.
Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
*Does not represent the typical rate for every borrower, and other fees may apply.


Our top-rated lender: Lendio

Lendio partners with over 75 lenders, which improves your odds and efficiency to get the funding you need.

Qualifications:

Money Approach

$50k in revenue

Calendar Approach

6 mos. in business

Analysis Approach

560 credit score


5 Best Small-Business Loans

Lendio: Best overall for small business

Lendio
Lendio

Starting at 4.25% interest

  • Lines of credit, term loans, & more
  • Loan amounts from $1,000 to $5 million
  • Min. credit score: 560
  • Funding in as little as 2 days

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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 loan details

Loan type
Min./max. loan size
Repayment term
Get a loan
Term loan

$5,000/$2 million

1–5 yrs.

Line of credit

$1,000/$500,000

1–2 yrs.

Commercial mortgage

$250,000/$5 million

20–25 yrs.

Invoice financing Up to 90% of receivables

Up to 1 yr.

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Strengths
pro Fast application
pro Wide variety of funding and lenders
pro Personalized guidance and expertise
Weaknesses
con High interest rates on some loans
con Reports of hard credit inquiries

Kiva: Best for 0% interest

Kiva
Kiva

Starting at 0% interest

  • Microloans only
  • Loans amount from $1,000 to $15,000
  • Min. credit score: N/A
  • Funding as fast as 1 month

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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).

Bluevine: Best for fast funding

BlueVine
Bluevine

Starting at 6.2% interest

  • Invoice factoring & lines of credit
  • Loan amounts up to $5 million
  • Min. credit score: 530
  • Funding as fast as same day

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Strengths
pro Same-day funding option
pro Low personal credit score requirements
pro Large loans available
Weaknesses
con Limited availability in some states
con High revenue requirements

Fundbox: Best for low credit

Fundbox
Fundbox

Starting at 4.66% draw rate

  • Lines of credit
  • Loans up to $150,000
  • Minimum FICO credit score 600
  • Funds available as soon as the next business day

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Strengths
pro Automated application
pro Low approval requirements
pro Fast funding
Weaknesses
con Low maximum loan amounts
con High APR

Square Loans: Best for Square users

Square Loans
Square
Square Loans
Rates unlisted
  • pro
    No min. credit score
  • pro
    $10,000 min. annual revenue
  • pro
    1 yr. min. time in business

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Pros
pro Flexible borrower requirements
pro No credit check
pro No collateral for <$75,000
Cons
con Offer is just for Square users
con No way to manually apply for a loan

Avant: Best personal loan for business

Avant
Avant

Starting at 9.95% APR

  • Personal loans only
  • Min. credit score: 600
  • Min. revenue: N/A
  • Min. time in business: N/A

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Strengths
pro Excellent customer reviews
pro Next-day funding
pro Low borrower requirements
Weaknesses
con Small maximum loan size
con Short repayment terms

Upstart: Best personal loan lending experience

Upstart
Upstart
Upstart
Starting at
6.5% APR
  • pro
    As fast as next-day funding
  • pro
    3 or 5 yr. loan terms
  • pro
    Monthly payment schedule
  • pro
    0–8% origination fee

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Pros
pro Excellent customer reviews
pro Next-day funding
pro Low starting APR
Cons
con High maximum APR
con High max. origination fees

Honorable mentions

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.

Compare the best small business loan providers

Lender
Lowest listed rate*
Min. revenue
Min. time in business
Get a loan
7% interest$50,0002 yrs.
2% monthly feeUnlisted1 yr.
Lendr

Lendr

12% factor rate$120,0001 yr.

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
*Does not represent the typical rate for every borrower, and other fees may apply.

SmartBiz: Best for SBA loans

SmartBiz
SmartBiz

Starting at 7% interest

  • SBA 7(a) loans only
  • Loan amount from $30,000 to $5 million
  • Min. credit score: 640
  • Funding as fast as 1 week

Data effective 12/19/22. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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: Most convenient

Kabbage
Kabbage

Starting at 2% monthly fee

  • Lines of credit only
  • Loan amounts from $1,000 to $150,000
  • Min. credit score: Unlisted
  • Funding within 3 days

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Info
Kabbage’s limited borrowing

Right now, Kabbage offers new credit lines only to American Express customers and prior borrowers. We expect applications to open up to everyone else soon.

Lendr: Best for merchant cash advances

Lendr
Lendr

Starting at 12% factor rate

  • Invoice factoring & merchant cash advances
  • Loan amounts from $5,000 to $500,000
  • Min. credit score: N/A
  • Funding as fast as next-day

Data effective 1/11/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

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.

Choosing the right small-business financing

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.

FAQS about small-business loans

How do I choose the right business loan for my business?

To figure out which loan is best for you and your business, you need to compare things like types of loan, loan amounts, interest rates, fees, and repayment terms. You’ll want to figure out both what kind of loan you need as well as what kind of deals you can qualify for.

For example, if you’re making a big commercial real estate purchase, you’ll want a big real estate loan rather than a small line of credit—but the qualifications on the real estate loan might be stricter.

We’ve done a lot of the legwork for you with our rankings, but remember that lenders may not offer you the lowest rates or the biggest loan amounts. So before you accept a loan offer, make sure you understand the details of your offer. (This is one of the reasons we like Lendio: it lets you compare loan offers for your specific business.)

Want more help narrowing things down? We’ve got a guide to choosing a business loan.

What’s the difference between peer-to-peer and direct lending?

Direct lending means that you get your business loan directly from a financial institution, like banks or alternative lenders. With peer-to-peer lenders, on the other hand, your “lender” is really a platform that connects you with investors—and those are the people actually giving you money.

For more nitty-gritty details, you can take a look at our explanation of peer-to-peer lending.

Are there specific loans for women-owned businesses?

Not exactly; the same anti-discrimination laws that keep lenders from denying someone because she’s a woman also keep companies from approving someone because she’s a woman. That being said, there are small-business lending companies that have programs to help women access loans or that have loans that might work well for women business owners.

You can find out more in our guide to business loans for women.

Are there loans for veteran-owned businesses?

There used to be several loans specifically for veterans, but most of those programs have expired. But it’s not all bad news; there’s still several grants, franchising opportunities, and business programs for veterans—all of which we round up in our article on financing for veteran-owned businesses.

Can I apply for a personal loan to fund my business?

Sure, you can. In fact, some personal loan companies (like Prosper) advertise their personal loans for business use. But is it a good idea? Maybe. A personal loan won’t build business credit, which could make it harder to get business financing in the future. But if you can’t qualify for a business loan yet, you might find that a personal loan is better than nothing.

We can’t tell you what’s right for your business; we trust you to figure it out, though. And if you need a little more guidance, we’ve got a guide to using personal loans for business.

Methodology

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.