Compare Small Business Loans

From loan options and application process to rates & fees and reputation, we research everything you need to compare small business loans and make a decision. Learn how our editors compare the different factors of small business loans below.
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How we Compare Small Business Loans

Loan Options - 20%
Application Process - 25%
Rates & Fees - 30%
Reputation - 25%

Loan Options

SBA loans - Contrary to popular belief, the SBA itself does not issue loans. Banks, credit unions, community development organizations and other partners do. What the SBA does is provide a guarantee of up to 85% for loans under $150,000 and 75% for loans over $150,000. This reduces the risk for lenders and raises borrowers’ chances of getting approved, as well as receive lower interest rates and longer repayment terms than they might otherwise qualify for.

  • SBA 7(a) Loans - The most common type of these SBA loans is called the Advantage. The up to $5 million dollars can be used for capital, to refinance debt, buy a business, real estate, equipment, etc. There’s also a second type of 7(a) loan called the SBA Express, which guarantees a response to any application within 36 hours. It follows the same guidelines as the Advantage, but has a $350,000 limit, and the SBA only guarantees 50%, which can make the interest rates a little higher.

  • CDC / SBA 504 Loans - These combine loans from a nonprofit CDC and a bank, to create a long term, low interest rate loan for up to $20 million. This should be used for the purchase of owner-occupied commercial real estate and heavy equipment.

  • SBA CAPLines Lines of Credit - CAPLines are SBA lines of credit for small businesses that need to meet short-term and seasonal working capital needs. The SBA offers five types of these lines, which must meet the SBA 7(a) rules. They can be fixed or revolving and have a maximum term of five years.

  • SBA Export Loans - These are designed to help small businesses fund new exporting operations and offer cashflow solutions, so they can be more flexible with the terms they can offer to their international customers.

  • SBA Microloan Program - These loans are issued through nonprofit, community-based organizations, and can be for up to $50k, and up to six years. However, the interest rates tend to be higher, between 8-13%. They cannot be used for the purpose of refinancing debt, or for purchasing real estate.

  • SBA Disaster Loans - If your small business or organization is located in a declared disaster zone, and suffered property damage, economic losses, or lost a key employee who is a military member called to active duty, this is the loan for you.


Private Lenders - Traditionally, the most common way for businesses to obtain a loan was through a commercial bank, but due to the perceived risk of investing in small companies, many banks have been getting out of the market for small business loans. Online lending platforms, such as broker agencies or peer-to-peer lenders, have stepped in to remedy the situation. If you don’t qualify for an SBA loan or you think they might take too much time, maybe a private loan is the solution for your needs. Here are the five most common types:

  • Loans Against Accounts Receivable - Many lenders will give you a loan against the balance of your outstanding invoices, which basically means they’re advancing you the funds against your accounts receivable.

  • MicroLoans - When your company is too small to get financing through traditional channels, there’s still an option for you. Both online lenders, banks, credit unions and nonprofit organizations offer loans of less than $50,000. Generally speaking, there are no limitations on the money’s use, whether it be for a start-up, buying equipment, or inventory capital, for example.

  • Commercial Real Estate Financing - These loans base their size and rates on the value of the real estate being offered as collateral. They can be used to pull out cash, refinance your mortgage, remodel your existing property, or purchase a new one.

  • Merchant Cash Advance - Typically marketed towards businesses whose revenue comes mainly from credit and debit card sales, providers say this is technically not a loan. They give you an amount of cash upfront in exchange for some of your future sales, which can be structured in two ways: either through fixed daily or weekly debits, plus fees, from your bank account --Automated Clearing House withdrawals-- or the repayment structure can be tied to a percentage of your credit/debit transactions.

  • Short-Term Loans - Though all businesses go through ups and downs, these fluctuations can hit small companies harder than larger, more established concerns. Short-term loans generally have a one-year term, but are often repaid much more quickly than that, within 90-120 days. To qualify, most lending institutions will ask for payment and cash flow histories for the past 3-5 years, income statements for the same period and possibly collateral. In a normal economy, interest rates for short-term loans will be higher than long-term ones, but in a recessionary economy, this can be flipped on its head. For this reason, it’s very important to be aware of the primer interest rate and make sure to do comparison shopping.

  • Long-Term Loans - These generally have a fixed maturity of 3-10 years, though some can be extended up to 20, depending on their use. They start around $25,000 and can go up to $200,000. The approval process is more rigorous in direct proportion to the amount of the loan. The principle behind every loan should be to tie up its term according to the life of the asset being purchased, and always measured against the cost of said asset’s lease. So, if you’re buying a piece of equipment that will last ten years, then a long-term loan is the logical solution, (this would also apply to any other long-term project, such as construction projects or purchasing buildings or other businesses). The interest rates on these types of loans should be a little lower than for short-term ones, but as previously mentioned, this can vary greatly, and you should be aware of the prime interest rate in order to negotiate with your loan officer.

  • Line of Credit - This can give owners a sense of calm, as it guarantees cash on hand whenever necessary, to be used for anything from repairs to the purchase of new equipment. If you have time gaps between capital needs and revenue realization, a line of credit can help you ride out the cycle until accounts payable have been received. Obtaining one depends on factors such as the owner’s personal assets, consistent earnings, excellent capital position, cash flow statements, and multiple sources of repayment. Generally, lenders will put a cap on the amount of funds you can draw on, and you’ll only have to pay interest on the outstanding principal.

  • Start-up Loans - Finding financing for an untested business can be very difficult, as it has the highest risk of any type of loan. Therefore, the qualifying factors will be stricter than with a well-established company. Some lenders offer different types of start-up loans for different purposes, such as equipment financing, business credit cards, and credit line building. Interest rates tend to be higher, and you’ll almost always have to put up a personal guarantee and/or collateral.

Small Business Loans with the Best Loan Options:

OnDeckKabbageLendingTreeTorroRapid AdvanceGo Fast PayLendzaFunderaFundia
SBA LoanYesYesYesYesYesYesYesYesYes
Loans Against Accounts ReceivableNoNoNoNoNoYesNoNoNo
Commercial Real Estate FinancingYesYesYesYesYesNoYesYesNo
Merchant Cash AdvanceYesYesYesYesYesYesYesYesNo
Short Term LoanYesYesYesYesYesYesYesYesYes
Long Term LoanYesYesYesYesYesYesYesYesYes
Line of CreditYesYesYesYesYesYesYesYesYes
Start-Up LoanYesYesYesYesYesYesYesYesYes

Application Process

SBA Loans - It’s important to understand that as a federal institution, the SBA promotes specific policy agendas. Therefore, they are very specific about what the loans can be used for, and have strict qualification requirements:

  • Be in business for at least two years

  • Personal credit above 680 and good credit history

  • Must personally guarantee the loan, and in some cases, provide collateral

  • Must have a business plan and detailed financial data on the business

  • Must be a profitable business

  • May require a down payment, especially if its purpose is a real estate purchase

Standard Bank Loans / Lines of Credit - Perhaps your bank doesn’t participate in the SBA loan program, or you are more immediately in need of the money. If this is the case, a standard loan may be more convenient for you. These requirements are generally very similar to the SBA ones, although slightly less stringent:

  • Be in business for at least two years

  • Personal credit above 600, and good credit history

  • Most lenders will require a 30% down payment and some form of pledged collateral

  • Must personally guarantee the loan

  • Must provide a solid business plan and sound financials

Peer2Peer Business Loans - This type of loan connects investors with lenders in an online marketplace. Their requirements are quite strict because they usually don’t require collateral:

  • At least two years in business

  • Must have a credit score of at least 650, and excellent credit history

  • Annual business revenues should be above $75k

Short-Term Loans / Lines of Credit - Short-term loans are generally given by non-bank lenders and paid back within 3-24 months. These loans are available for borrowers with lower credit scores and need cash quickly.

  • Personal credit score above 500

  • At least 1 year in business

  • Monthly business revenues above $2,500

For a list of some of the terms on this page, check out our Small Business Loans Terminology article.

Small Business Loans with the Best Application Process:

OnDeckKabbageLendingTreeTorroRapid AdvanceGo Fast PayLendzaFunderaFundia
Time in BusinessAt least 1 yearAt least 1 yearAt least 1 yearVaries on the lenderAt least 1 yearNot Stated3 monthsVaries on the lenderAt least 1 year
Minimum Credit Score500Not StatedVaries on the lenderVaries on the lender600Not StatedVaries on the lenderVaries on the lenderNot Stated
Personal GuaranteeYesNoYesVaries on the lenderNoNoYesYesNot Stated
CollateralNoNoVaries on the lenderNoNoNot StatedYesNoNo
Annual Revenue Minimum$100,000$50,000$100,000Varies on the lender$120,000Not Stated$100,000$100,000Not Stated
Business PlanYesNoVaries on the lenderVaries on the lenderNoNoNoNoNo

Rates & Fees

As you’ve seen in the previous sections, the specifics of each loan vary wildly, dependent on a number of factors, from loan type and amount to the borrower’s qualifications, and even the lending institution itself. Loan amounts can start at $1,000 and rise all the way up to $20 million.

Likewise, loan terms can be anywhere from 3 months to 20 years, but be aware of any prepayment penalties. We always remind you to read the fine print, and ask questions! By far the most common thread in every negative review of any financial company has to do with not truly understanding the terms of your contract.. Small things have a way of adding up, and catching you unawares. We divided loan terms into the following categories, but bear in mind that these aren’t set in stone, and that we only evaluated the most common types of loans.

Minimum-Maximum Loan Amount

Loan Term

Interest Rate


Time to Funds

Prepayment Penalty

Origination Fee

Small Business Loans with the Best Rates & Fees:

OnDeckKabbageLendingTreeTorroRapid AdvanceGo Fast PayLendzaFunderaFundia
Minimum to Maximum Loan Amount$5,000-$500,000$2,000-$100,000Up to $250,000 depending on the lender$10,000-$500,000$15,000-$500,000$5,000-$100,000$5,000-$350,000$2,500-$5,000,000`$25,000-$250,000
Loan Term3 to 36 months6 to 12 months1 to 10 years12 to 48 months9 to 18 months30 to 120 daysUp to 25 yearsUp to 120 monthsNot Stated
Interest Rates1.20%1%-12%Varies on the lenderVaries on the lenderNot StatedNot Stated6%-13%Starts at 5%Not Stated
APR9% to 99%24% to 99%Varies on the lenderVaries on the lender15% to 80%3% to 52%Not StatedVaries on the lenderNot Stated
Average Time to Funds24 hoursFew minutes to several days48 hours48 hours3 days2 business daysUp to 30 days3 weeksNot Stated
Prepayment PenaltyNoneNoneVaries on the lenderVaries on the lenderNoneNoneNoneNoneNone
Origination Fees1st loan: 2.5%-4% of loan amount, 2nd loan: 1.25%-3% of loan amount, 3rd+ loan: 0-3% of loan amount NoneVaries on the lenderVaries on the lenderNoneNoneNoneNot StatedNone


When evaluating each company’s reputation, we looked at a series of different things. First of all, how do they stack up in relation to other similar lenders? The Better Business Bureau, as a non-profit organization focusing on market trust, is generally a good place to start looking at reviews. Their accreditation carries a lot of weight in consumer trust and legitimacy. Likewise TrustPilot, though much newer, has a large number of independent customer reviews.

It was important to us to evaluate the trajectory of each particular company as well. Though being in business twenty years doesn’t necessarily mean a lender is honest, it does establish a track record with which to evaluate said honesty.

Lastly, we wanted to make sure that each company was easy to get in contact with, as that is one of the complaints that always crops up, regardless of the type of service.

BBB Grade

BBB Reviews

TrustPilot TrustScore

Years in Operation

Free Consultation

Toll-Free Phone


Online Chat

Small Business Loans with the Best Reputation:

OnDeckKabbageLendingTreeTorroRapid AdvanceGo Fast PayLendzaFunderaFundia
BBB Reviews72%0%42%0%97%0%N/A0%100%
TrustPilot TrustScore9.
Years in Operation108204116N/A32
Free ConsultationYesYesNoNoNoNoNoYesNo
Toll-Free PhoneYesYesYesYesYesYesNoYesYes
Online ChatYesNoNoNoNoNoNoYesNo

Full Small Business Loans Comparison

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Latest Reviews

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Los Angeles, California
I really appreciate if I can get loan I would be glad that I can have a little help .

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Riverton, Utah
Nav is the only business loan site that helps make decisions based on actual credit scores. It's great to get recommendations BEFORE credit is pulled and apps are filled out.

Tiffany C
Riverton, Utah
Nav gave me the guidance that I needed to get funded. Now my business is doing well and thanks to them I have the education I need to be a successful small business owner.

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