Many small business owners aren’t aware that they qualify for small-business loans, according to the Small Business Administration (SBA). Instead, they often depend on a mix of small-business credit cards, personal credit cards, and personal loans. SBA data shows that nearly half of small businesses use personal credit cards for things like working capital and equipment financing. But this can lead to problems, like increased personal liability.
There’s a better way. There are plenty of small-business lenders out there offering both secured and unsecured business loans, SBA loans, business lines of credit, and specialized business credit products. These include merchant cash advance loans, equipment financing loans, business real estate loans, and invoice factoring loans. And the best part? You don’t need a personal guarantee.
If you’re a small-business owner looking for financing options, or if you’re looking for a new lender or loan type to help grow your business, keep this list of business lenders handy. They all offer competitively priced commercial financing products for smaller businesses, including solopreneurs and microbusinesses. But remember, the loan options and offers you get from these providers may vary based on factors like your business or personal credit score, assets, annual revenue, time in business, and others.
Here are some top picks:
-
Bluevine: They offer business lines of credit and invoice factoring lines for small-business owners. These loans are available even if your credit isn’t perfect, but they’re not available for new businesses. The application process is simple and funds usually arrive within hours.
-
OnDeck: This popular alternative lender offers business term loans and business lines of credit to small and midsize businesses that may not qualify for traditional loans. They have lenient underwriting standards and offer the option to pay off loans early without any penalties.
-
Accion: This nonprofit business lender offers microloans to businesses that have been neglected or underserved by traditional sources of capital. They don’t require borrowers to have any operational or credit history.
-
Lendr: They offer invoice factoring loans and merchant cash advance loans. Their key selling points are rapid approval and funding, and relatively high borrowing limits.
There are also small-business loan marketplaces where you can compare options from multiple lenders in one place. These include Funding Circle, Lendio, SmartBiz, and Fundera. These platforms offer a wide range of financing solutions, from traditional term loans and lines of credit to larger SBA loans and nontraditional solutions like invoice factoring and working capital loans.
Remember, traditional banks and credit unions are not the only sources of commercial funding. There are many small-business lenders willing to step up and fill the gap. So, if your business needs financing now, there’s a good chance you’ll find it from one of these lenders or marketplaces, even if your credit isn’t perfect.
