The Best Business Loans of 2020

Our business loan reviews are the result of over 40 hours of research on 90+ business loan companies from across the web. These reviews and our business loan guide help small businesses and startups find the best business loans for their business.

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The Best Business Loans of 2020

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How We Chose the Best Business Loans

The business loan companies examined offer loans for small and large companies. These loans are available in varying sizes and with terms to suit the needs of individual business owners. We evaluated these companies on the most important aspects of business funding — loan amount, repayment terms, time to fund, minimum annual revenue, and fees..

Loan Amount

Each business has unique funding needs, based on factors like size and plans for growth. A business may need a smaller loan to maintain operations or a larger loan for an expansion. Loan amounts of the reviewed business loans range from 25 dollars up to five million.

Repayment Terms

It’s important to consider loan terms when choosing a business lender to make sure the terms are achievable for your business. The payment terms of a loan include the length of the loan term, the interest rate assigned to the loan and the amount of each payment.

Time to Fund

The time it takes to receive the funds from a business loan can make the difference between keeping your company in operation and having to shut down while waiting on money to get materials. Funding may be available within minutes or take as long as several days.

Minimum Annual Revenue

The minimum annual revenue required to get a loan from a given company lets business owners know up front which lenders are most likely to offer funding. Minimum annual revenues required may be as high as $350,000 from some lenders.

Fees

The fees charged by lenders are added on top of the interest rates charged and are typically taken when the loan originates. Some of these lenders don’t charge an additional fee while others charge a flat rate or a percentage of the amount borrowed.

The 9 Best Business Loans of 2020

CompanyType of LoanAmountRates | Terms
BlueVineBusiness Line of Credit$250,0004.8% APR | 6-12 months
CAN CapitalBusiness LoanShort-term: $2,500-$250,000
Term loan: $50,000-$150,000
Short-Term: 1.15%-1.48% APR | 3-24 months
Term Loan: 12.9%-29.9% APR | 2-4 years
FundboxBusiness Line of Credit$1,000-$100,000Starts at 4.66% APR | 12-24 weeks
KabbageBusiness Line of Credit$2,000-$250,0001.5%-10% Monthly Interest Rate | 6-18 months
KivaBusiness Loan$25-$15,0000% Interest | Up to 36 months
Lending ClubBusiness Loan$5,000-$500,000Starts at 4.99% APR | 6 months - 5 years
LendioBusiness Loan$5,000-$2MStarts at 6% APR | 1-5 years
OnDeckBusiness Loan$5,000-$500,0009.99%-99% APR | 3-36 months
SmartBizBusiness Loan$30,000-$350,0008%-9% APR | Up to 10 years

BlueVine

BlueVine Logo
BlueVine specializes in providing business credit lines that companies can tap into with no restrictions on how the money can be used. Companies with unpaid invoices also have the option to submit invoices to BlueVine to gain access to the funds.

Businesses receive funds as quickly as five minutes without paying any additional fees beyond the 4.8% interest rate. Repayment periods can be as short as six months or up to 12 months. BlueVine does not charge prepayment penalty fees if a business repays earlier than scheduled.

In addition to offering credit lines and invoice factoring services, BlueVine makes a fee-free checking account available to business owners. This account doesn’t require a minimum deposit to open it, and there are no service or overdraft fees. The funds are backed by FDIC insurance through Bancorp, and the accounts are set up in a way that facilitates transfers between other BlueVine accounts.

AmountType of LoanRates | TermsAdditional Details
$250,000Business Line of Credit>4.8% APR
>6-12 months
>Time to Fund: 5 minutes
>Min. Credit Score: 600
>Min. Annual Revenue: $120,000
>Min. Time in Business: 6 months
>More details at Blue Vine

Pros & Cons of BlueVine Business Loans
A business loan from BlueVine offers an opportunity to receive a large amount of cash at a relatively low interest rate. There are also no origination fees. Potential drawbacks include having a large amount to pay back in a short time and the need to be in business for a minimum of six months.

ProsCons
>Offers invoice factoring>Short repayment terms of 6 to 12 months
>No fees>Minimum revenue of 120,000
>Funding in as little as five minutes

What Customers Are Saying
Customers appreciate the fast funding from BlueVine, with one customer describing the importance of having cash on hand quickly and comparing the fast service from Blue Vine to the less responsive treatment from his local bank. He went on to say, “BlueVine has been a great partner to us and I personally cannot be more grateful.”

CAN Capital

CAN-Capital Logo
CAN Capital provides short- and long-term business loans for established businesses with good credit ratings. Loan options include short-term loans with repayment terms ranging from three months up to two years. Traditional CAN Capital term loans have repayment terms ranging from two years up to four years.

CAN Capital specializes in making it easy for businesses to get working capital. Businesses served by this company include small organizations that have a monthly revenue of at least $4,500 and up to millions of dollars in annual revenue.

As an alternative finance company, business funding from CAN Capital can be more costly than funding from a bank, but they compensate for that by approving clients who may not have the opportunity to get bank financing and by providing quick access to funds. The funds may also be used for almost any business purpose, such as payroll, advertising or paying taxes.

AmountType of LoanRates | TermsAdditional Details
Short-term: $2,500-$250,000

Term loan: $50,000-$150,000
Business Loans>Short-Term: 1.15%-1.48% APR | 3-24 months

>Term Loan: 12.9%-29.9% APR | 2-4 years
>Time to Fund: Under 24 hours
>Min. Credit Score: 600 for short term and 680 for term loan
>Min. Annual Revenue: $4,500/month for short term and $350,000/year for term loan
>Min. Time in Business: 1 year for short term and 7 years for term loan
>More details at CAN Capital

Pros and Cons of CAN Capital Business Loans
The pros of doing business with CAN Capital include the fast funding, which may be as quick as 24 hours. CAN Capital also offers small and large loans with repayment terms to accommodate a borrowers budget. Cons include origination fees when getting a loan and the high minimum annual revenue required to be considered for a CAN Capital loan.

ProsCons
>Funding with 24 hours>3% origination fee for term loans
>Repayment terms range from 3 months to 4 years>$595 administration fee for MCA

What Customers Are Saying
CAN Capital customers appreciate the efficiency of transactions and the direct communications from staff members. Customers also value the speed of funding and the team’s professionalism. One satisfied customer described the experience of working with CAN Capital by saying, “I have been using Can Capital for my fundings for years. I am happy with the quick approval and funding that help allow my business to grow and expand.”

Fundbox

Fundbox Logo
Fundbox provides business funding services such as business lines of credit, business loans and invoice financing. Interest rates charged begin at 4.66% APR. Companies that have been in business for as little as three months are able to apply to Fundbox for funding; however, a minimum annual revenue of $25,000 is required to receive funding.

A fairly low credit score of 500 is all that’s needed to be considered, which is lower than what’s found with some other lenders. Repayment terms range from 12 to 24 months. Early repayment is allowed, and Fundbox provides businesses with a dashboard that shows the terms, so there’s no confusion about loan and repayment details. Fundbox simplifies the borrowing process by depositing funds directly in a borrower’s checking account.

Fundbox also offers a merchant program that lets businesses offer zero-interest financing to customers. This provides a way for the merchant to get paid as quickly as within 24 hours.

AmountType of LoanRates | TermsAdditional Details
$1,000-$100,000Business Line of Credit>Starts at 4.66% APR
>12-24 weeks
>Time to Fund: Under 24 hours
>Min. Credit Score: 500
>Min. Annual Revenue: $25,000
>Min. Time in Business: 3 months
>More details at Fundbox

Pros and Cons of Fundbox Business Funding
Business funding from Fundbox provides business owners with the advantage of flexibility in regard to loan amounts. It also comes with a relatively low, 4.66% interest rate, and funds become available quickly, within as little as a day. Fundbox also provides funding for fairly new businesses, with the drawback of requiring a minimum annual revenue of $25,000 when a newer company may not have an accurate idea of annualized earnings.

ProsCons
>No penalties for early repayment>$25,000 minimum annual revenue required
>User dashboard
>Fast funding in 24 hours or less

What Customers Are Saying
Fundbox customers say positive things about the sense of partnership and the results achieved through those partnerships. Customers appreciate the full-service approach provided by Fundbox, and one customer described the growth potential his company achieved by saying, “Our partnership with Fundbox has allowed our Pros to confidently take on new opportunities so they can continue to grow their businesses.”

Kabbage

Kabbage Logo
Kabbage offers small business funding in amounts ranging from $2,000 up to $250,000. Monthly interest rates range from 1.5% up to 10%, and repayment terms may be as short as six months or as long as 18 months.

Kabbage doesn’t require borrowers to have a minimum credit score, though Kabbage does require business to have been in operation for at least a year. Businesses are also required to have a minimum annual revenue of at least $50,000 in order to receive a business line of credit from Kabbage.

Kabbage also provides a way for a business to accept credit card payments over the internet, using Kabbage Payments. Fees for this function are 2.25% for a card-not-present transaction and 2.5% for a gift certificate transaction. A dashboard is also provided for business owners to review cash flow information.

AmountType of LoanRates | TermsAdditional Details
$2,000-$250,000Business Line of Credit>1.5%-10% Monthly Interest Rate
>6-18 months
>Time to Fund: Under 24 hours
>Min. Credit Score: None
>Min. Annual Revenue: $50,000
>Min. Time in Business: 1 year
>More details at Kabbage

Pros and Cons of Kabbage Business Lines of Credit
Positive aspects of Kabbage business lines of credit begin with the wide range of loan amounts available to a business owner. Repayment terms ranging from six to 18 months offer borrowers the opportunity to select a budget-friendly payment plan. Funding in 24 hours or less lets borrowers get the capital needed in a timely manner.

Cons of a Kabbage loan include slightly high interest rates and the requirement for a fairly high minimum annual revenue. The requirement that a business be in operation for at least a year also blocks new companies from getting funding through Kabbage.

ProsCons
>Wide range of loan amounts available>Steep interest rates
>Flexible repayment terms>Fairly high minimum annual revenue
>User dashboard>Minimum of one year in business required

What Customers Are Saying
Kabbage customers praise the company’s staff members for being reassuring and professional. One pleased customer described an encounter with a Kabbage employee by saying, “Amazing, amazing. Huge relief. I recommend Kabbage to everyone and have been telling other business owners that this is the type of company you need on your side…”

Kiva

Kiva Logo
Kiva operates as an international nonprofit organization, and it offers loans to individuals who are starting businesses and existing small business owners. As a nonprofit organization, Kiva doesn’t charge interest on its loans. It also does not require borrowers to pay loan origination fees.

Business loans from Kiva range from $25 up to $15,000, and it takes from 20-30 minutes to apply for a loan, which then goes through a process that takes 45 days for funds to become available. After funding, borrowers have up to 36 months to repay business loans.

Details, such as length of time in business, annual revenue earned by the business and the borrower’s credit score, are not required for Kiva loans. There are age requirements to be eligible for these loans, and the loans have requirements based upon the borrower’s country. For example, U.S. Kiva loans must be used for business purposes.

AmountType of LoanRates | TermsAdditional Details
$25-$15,000Business Loan>0% Interest
>Up to 36 months
>Time to Fund: 20-30 minutes
>Min. Credit Score: None
>Min. Annual Revenue: None
>Min. Time in Business: None
>More details at Kiva

Pros & Cons of Kiva Business Loans
Kiva loans offer borrowers the advantage of a 0% interest rate and do not have origination fees, making it an inexpensive way to get working capital. No minimum credit score is required, which helps borrowers with poor credit get a loan. The main drawback for people seeking a Kiva loan is the 45 day wait between applying for the loan and receiving funds.

ProsCons
>0% interest>45 days between application and funding
>No loan origination fees
>No minimum credit score
>Up to 36 months to repay the loan

What Customers Are Saying
Customers borrowing from Kiva appreciate the chance to get a business loan with no interest charges and no origination fees. They also value the advantage of taking out microloans with easy repayment terms to make them manageable. Kiva lenders also say positive things about the experience of lending money through the organization, citing the good feelings associated with helping others.

Lending Club

Lending-Club Logo
Business loans from Lending Club provide capital in amounts ranging from $5,000 up to $500,000. Lending Club interest rates begin at 4.99%, and loan origination fees range from 3.49% of the loan amount up to 6.99%. It takes customers about five days to get the funds after applying, and repayment terms can be as short as six months or as long as five years.

Lending Club does not have a minimum credit score requirement. Businesses have to be in operation for at least a year to become eligible and must also have a minimum annual revenue of at least $50,000.

Lending Tree software lets customers fill out an online application for a loan. It then provides loan offers from lenders that match the customer’s situation, and the customer chooses the lending option with the best rate and terms for their situation.

AmountType of LoanRates | TermsAdditional Details
$5,000-$500,000Business Loan>Starts at 4.99% APR
>6 months - 5 years
>Time to Fund: 5 days
>Min. Credit Score: None
>Min. Annual Revenue: $50,000
>Min. Time in Business: 1 year
>More details at Lending Club

Pros and Cons of Lending Club Business Loans
Pros of borrowing from Lending Club include the wide range of loan amounts available as well as the flexible repayment terms that can be anywhere from six months up to five years. Some borrowers who have credit problems also benefit from the lack of a minimum credit score.

Lending Club disadvantages include the slightly longer time to receive funds and the requirement that a business be in operation for a minimum of one year.

ProsCons
>Wide range of loan amounts>Five days to receive funds
>No minimum credit score required>Origination fees of 3.49%-6.99%
>Flexible repayment terms

What Customers Are Saying
Customers enjoy the fast, easy application process. After describing how easy it is to apply, one customer mentioned coming back for a second loan by saying, “I’ve gone through Lending Club to get a loan. This second time around was just as great as the first. The entire process was quick and easy. In the course of several days all the checks that were needed were completed, the loan was approved and monies were deposited into my account. I received a lower interest rate than I did before. The whole process was fast and painless. I don’t see myself looking anywhere else in the future if I want to get another loan, Lending Club will always be my first choice.”

Lendio

Lendio Logo
Lendio is a business loan marketplace that uses software to match borrowers with lenders. Lendio does not charge origination fees, and interest rates begin at 6% APR and go up from there. Repayment terms on Lendio loans range from one to five years.

Loan amounts available through Lendio range from $5,000 to $2,000,000, and funds become available as quickly as 24 hours after being approved. Borrowers must have a credit score of 500 or higher and must have an annual revenue of $8,000 or higher. One year in business is the minimum considered for loans through Lendio.

Lendio has a network that includes over 300 lenders. That lets them provide funding for businesses that may not ordinarily be able to get a loan from a traditional bank. Borrowers use the funds to maintain operations during slow times and when they want to expand their companies.

AmountType of LoanRates | TermsAdditional Details
$5,000-$2MBusiness Loans>Starts at 6% APR
>1-5 years
>Time to Fund: Under 24 hours
>Min. Credit Score: 500
>Min. Annual Revenue: $8,000
>Min. Time in Business: 1 year
>More details at Lendio

Pros and Cons of Lendio Business Loans
Pros of getting funding for a small business through Lendio include the speed of receiving funds after applying and the low barriers to receiving a loan. The lower credit score and annual revenue required to get funding through Lendio can open doors to business owners who may not get a loan otherwise. Businesses do, however, have to be in operation at least one year, and interest rates may be higher than from some other lenders.

ProsCons
>Fast funding>Slightly higher APR
>Relatively low annual revenue
>No loan origination fees
>Minimum of one year in business

What Customers Are Saying
Customers who aren’t eligible for traditional bank loans appreciate having access to business funding. One customer described borrowing through Lendio by saying, “I don’t even know how to put it more than just an extreme relief that I knew we could continue on through the slow season and make it to the busy season again.”

OnDeck

OnDeck Logo
OnDeck offers business loans and credit lines to companies that have been in operation for three or more years. Business owners need to have a credit score of at least 600 to get a loan through OnDeck, and a minimum annual revenue of at least $250,000 is also required.

OnDeck loan amounts range from $5,000 up to $500,000 and have APRs of between 9.99% and 99% plus a loan origination fee of 2.5%. Borrowers receive the funds within 24 hours, and in some cases the same day. Repayment plans range from three months up to three years.

OnDeck provides an online application process that allows business owners to apply at any time. The company also has a customer service team that provides help throughout the application and funding process.

AmountType of LoanRates | TermsAdditional Details
$5,000-$500,000Business Loan>9.99%-99% APR
>3-36 months
>Time to Fund: 24 hours+
>Min. Credit Score: 600
>Min. Annual Revenue: $250,000
>Min. Time in Business: 3 years
>More details at OnDeck

Pros and Cons of OnDeck Business Loans
Positive aspects of OnDeck business loans include the range of loan amounts and the speed of receiving the money. Cons of the loans from OnDeck include the high minimum annual revenue and high credit score the business and borrower must have. High APR and origination fees also make the loans a bit costly.

ProsCons
>Fast funding>High APR and origination fees
>Broad range of loan amounts>High minimum annual revenue
>Flexible repayment terms

What Customers Are Saying
Customers appreciate the professionalism and helpfulness of the OnDeck staff members and the ongoing communications throughout the process of acquiring a business loan. One satisfied OnDeck customer described his experience by saying OnDeck is “always helpful when we need capital. They have always come through when we needed capital to expand our business.”

SmartBiz

SmartBiz Logo
SmartBiz helps business owners apply for and get SBA loans and traditional loans for working capital. Working capital loans and debt refinancing loans through SmartBiz have interest rates between 8% and 9%.

SmartBiz manages larger business loans, ranging from amounts starting at $30,000. Funding is delivered to borrowers as quickly as within seven days after the loans are approved.

To get a business loan through SmartBiz, companies have to be in business for at least two years for a working capital loan. The lowest credit score considered for funding through SmartBiz is 650.

AmountType of LoanRates | TermsAdditional Details
$30,000-$350,000Business Loan>8%-9% APR
>Up to 10 years
>Time to Fund: 7 days or less
>Min. Credit Score: 650
>Min. Annual Revenue: $100,000
>Min. Time in Business: 2 years
>More details at SmartBiz

Pros & Cons of SmartBiz Business Loans
Pros of SmartBiz loans include the high loan amounts available and repayment terms of 10 to 25 years. Having loan options for either working capital or real estate purchases provides extra options for businesses. Cons of these loans include the need for a high credit score and high annual revenue. The two-year minimum for time in business is also prohibitive to new business owners.

ProsCons
>Large loan amounts available>High minimum credit score
>Repayment terms from 10-25 years>Minimum of two years in business
>Loan options for working capital or real estate

What Customers Are Saying
SmartBiz customers appreciate the professionalism and the ease of applying for a business loan. One happy customer described working with SmartBiz by saying, “Loan Application Made Easy AND Enjoyable. Working with SmartBiz Loans made applying for an SBA loan quick and easy. Their team was prompt, professional, and a pleasure to work with. I want to apply for more loans just to be able to work with them again!”

What Are Business Loans?

Business loans are loans that companies use for business purposes. These loans may be used to provide a business with working capital, debt refinancing and in some cases to buy real estate.

Types of business loans include: traditional loans, business lines of credit, and invoice factoring.

  • Traditional loans provide a lump sum up front, which is often deposited directly into a company’s business account, and then borrowers repay the loans in monthly increments.
  • Credit lines allow businesses to draw funds as needed, up to the borrower’s approved credit limit.
  • Invoice factoring takes over debt that’s owed to a business and provides immediate funds to the company.

Interest rates and repayment terms vary widely, based on factors such as the borrower’s credit score, length of time in business and the lending organization’s specific terms. There are loan options for businesses with almost any amount of time in business, ranging from start-ups to long-term companies that have been operating for decades.

Benefits of Business Loans

A business loan provides a company with immediate access to working capital. That means a small business may benefit from taking out a business loan in a number ways, including gaining the opportunity to keep the business going when times are slow and growing when rapid expansion is needed.

In some cases, taking out a business loan provides a business owner with tax benefits in addition to working capital. The business profits that are used to repay a company’s loans may be exempt from taxation. That leaves the business owner with the advantage of only paying tax for the portion drawn out as self-payment.

Applying for a business loan is easy and fast, with many lenders making application forms available over the internet. Time equals money in the business world, so being able to manage business funding quickly allows business owners to stay on track.

Taking out a business loan can help a company’s owner maintain control of the company compared to the prospect of taking on a partner or angel investor to get funds for the business.

This is because lenders only expect repayment based on the terms established at the onset of the loan while a partner or angel investor may require partial control of the business in exchange for investing in the company.

What to Look for in a Business Loan

Each business is unique and has equally unique funding needs, and that means there are some specific details for each borrower to consider including: the amount needed, the price of the funding, the repayment terms and how long it takes to get the funds.

  • Amount needed: One of the first things to consider when hunting a business loan is the amount of money needed. Business loans may range from an amount as small as $25 up to 5 million dollars, so knowing how much is needed helps a borrower navigate to a lender who handles transactions of the right size.
  • Cost of the funding: The cost of the funding for a business loan includes the origination fee and the interest rate. Some lenders do not require an origination fee, and others may waive the interest fee.
  • Repayment terms: The repayment terms include how long the borrower has to repay the money, how much the payment is and if the borrower has the option to repay early without a penalty.

Knowing the minimum credit score and annual revenue required by a lender, as well as the minimum amount of time a borrower must be in business to work with the lender, can help a business owner choose a lender who is most likely to approve their business loan application.

The Cost of a Business Loan

While most business loans have interest rates between 1.5% and 9%, there are also some with interest rates as low as 0% going up as high as 99%. Origination fees also add to the cost of a business loan, and some lenders have loans with no origination fees while others may be as high as $3,000.

The cost of getting a loan for a business is typically based on details, such as credit score, annual revenue and the length of time in business. A high credit score, high annual revenue and being an established business can make it possible to get a loan with a low interest rate and low origination fees.

Things to watch for include details that could drive the cost of a loan higher, such as late fees if a monthly payment is delayed. Also, it’s important to pay attention to the repayment terms. Make sure the repayment is stretched over a period long enough that the loan payments don’t eat up all of your working capital.

When considering a completely free business loan option, check to see if a non-monetary requirement is involved.