Procuring funding is one of the major responsibilities for any small business owner. Whether you need an immediate cash infusion or are planning for an expansion, the process of finding funding can be exhausting. Compiling financial statements, checking your credit score, and personally guaranteeing your loans may all be necessary before you can procure funding. To get your search started the right way, you may want to focus on some of the following best-in-class small business loans and lines of credit.
- On Deck
OnDeck is a fast, accessible loan that has to be paid back within two years. Your business can aquire up to $500,000 up to $500,000 in funding as long as it meets certain requirements: it must have been in business for at least nine months and should have at least $75,000 in annual revenue. OnDeck is a very flexible option which has two types of loan, including one for less established businesses. In terms of small business lending, the interest rates on these loans can be high but the requirements are fairly low.
Startups and single-owner enterprises may be able to request a small cash infusion of up to $35,000 through Prosper. There is one catch, however — the loan will operate as a personal loan, not a business loan. For those who do not have a significant business history, this may be an ideal choice. Prosper’s funding is fairly fast, with approximately a two week wait for funding.
Kabbage is one of the fastest providers of small business funding, with up to $100,000 available nearly instantaneously. Kabbage is intended for businesses that absolutely need cash now, such as cash-heavy businesses like restaurants. The loans from Kabbage have to be paid back on a short six month term and the APR can approach a staggering 90%. That being said, it’s one of the very few options that can offer a loan within a day.
- Funding Circle
A peer-to-peer lending option based in the U.K., funding circle offers loans up to $500,000 and rates as low as 5.49%. Though it is based in the U.K., Funding Circle offers loans to most of the states in the US — the only exception being Nevada. Funding Circle is designed for businesses with an already established history. Companies that have been in business for fewer than two years may not be able to apply.
Fundation’s loans take approximately three days to acquire and can offer up to $150,000 for capital loans and $500,000 for expansion. A direct lender, Fundation is able to provide fairly competitive rates ranging from below 8% to up to 25%. The terms for working capital loans are one or two years, while the terms for expansion loans are two to four years. Fundation is ideal for established businesses looking for a fairly affordable affordable business loan.
- Lending Club
Lending Club started out delivering personal peer-to-peer loans, but quickly branched out into providing retirement accounts and small business funding. As a peer-to-peer lending institution, Lending Club is perfect for investors who are looking for alternative methods of funding. Credit-challenged investors and start-up owners will find Lending Club a convenient place to acquire loans from $15,000 to $300,000. The only negative is that interest rates can be significant, ranging from sub-6% to over 35%.
- Rapid Advance
RapidAdvance is a merchant cash advance service, which is a type of small business credit. Merchant advance services essentially purchase a portion of the company’s future income for a set amount. Effectively, RapidAdvance can offer an advance of up to 250% of the company’s credit card sales. This cash advance will be paid off with future credit card sales. RapidAdvance is ideal for businesses that are having a minor shortfall that they can easily makeup later.
A non-profit organization, Accion provides micro-loans for small business borrowers small business borrows. Accion requires a credit score of at least 575, proof of income, and appropriate cash flow. Loans from Accion can range from $10,000 to $100,000 depending on the borrower and their needs. Accion’s interest rates are fairly high, starting at 11%, but their requirements are also fairly minimal.
- Crest Capital
Crest Capital offers a very specific type of funding: equipment, vehicle, and software financing. If a business requires tangible or digital assets in order to expand and develop, Crest Capital can help. Loans of $5,000 to $500,000 are available, with no financial statements required on businesses requesting less than $250,000. Businesses will have had to have been established for at least two years and will need a credit score of at least 650.
- Wells Fargo
When it comes to traditional banks, Wells Fargo ranks as the top small business lender in the United States. Wells Fargo is an SBA-preferred lender, offering loans ranging from $25,000 to $5 million. Approval times on Wells Fargo loans range from three to five business days, with commercial rates starting as low as 6.35%. For borrowers looking for conventional small business funding, Wells Fargo is one of the top options — followed closely by Chase Bank. Wells Fargo and Chase Bank additionally offer credit cards for small business owners.
Small business owners may need to be determined when acquiring funding. Loans, lines of credit, and credit cards can all be leveraged for additional liquidity. It may simply take some work. When looking for business funding, it’s often worth it to apply for multiple loans in order to compare quotes.