The Best Small Business Startup Loans - Full Overview
Fundbox focuses on providing relatively low-dollar value loans that are repaid over the short term. This makes it a good choice for startups that need funding quickly but don’t plan to hold debt over the long term.
- Simple application process
- No long-term commitments
- No origination fees
- Weekly repayments can impact cash flows
You’ll be repaying your loan over a 24- or 52-week period in weekly installments, meaning this would be well suited for businesses that only need to cover short-term expenses. Interest rates aren’t disclosed before you apply, but your credit score won’t take a hit for having a look.
Fundbox is a top choice for businesses that don’t have the time to wait around for funding and need cash to cover expenses right now. Eligibility requirements are lenient, and it’s a good way for fledgling organizations to build credit.
Fora Financial was founded in 2008. Since then, it has provided over $2 billion in funding to more than 25,000 small businesses. This lender has maximum terms of 15 months; so, you won’t be hit with additional fees. Fora Financial also offers fast funding, which can facilitate growth opportunities with limited time horizons.
- Working capital from $5K – $500K
- Terms up to 15 months
- Approval not solely credit based
- You require $5,000 in monthly credit card sales to be eligible for Fora Financial's merchant cash advance
- Requires $5,000 in monthly sales
Fora Financial is a great choice for short-term loans, as the duration is limited to 15 months. In this space, Fora Financial offers a high degree of flexibility, providing financing for any business need. However, this lender does have credit score requirements (undisclosed), which can weigh on loan issuances. Beyond these factors, borrowers must be able to show at least six months of business history.
Fora Financial provides merchant cash advances and small business loans with terms capped at 15 months. This alternative provider makes it simple and straightforward to apply for a loan. It has an online application process and only needs bank statements dating back three months.
Founded back in 2014, Fundera has since risen to become one of the most popular and well-known loan aggregator services on the market. It doesn’t offer startup loans, but you’ll find a huge range of business credit cards to help new businesses.
- Poor credit is welcome
- Large range of credit cards to choose from
- Reasonable APR
- Some credit cards have annual fees
- Those with poor credit could face high-interest rates
Business credit cards are one of the most popular routes to funding for those organizations that are struggling to get more traditional types of lending. Fundera offers cards with rates ranging between 9.99% - 26.99%, has very achievable eligibility requirements and has partnered with some big names like American Express and Capital One.
If you only have small expenses to cover in the early days of your business, we highly recommend exploring which credit cards you can get through Fundera. They’re an ideal solution to help you off the ground.
Lendio is a popular loan marketplace that has a lot of options that cater to startups. In addition to a loan specialized for new ventures, you’ll find a range of different credit card options.
- Low starting rates of 6.00%
- Lenient credit requirements of 680
- Generous borrowing limit up to $750,000
- Funding can up to four weeks
- There are prepayment penalties
Lendio is near the top of our list, given its low rates, which start at just 6.00%. Plus, it’s a fairly flexible platform, with a generous borrowing limit and terms that can extend to 25 years.
Lendio is an excellent avenue for any brand new entrepreneurs looking for funding. With lenient eligibility criteria and a wide range of options, you’re almost certain to find a good match.
GoKapital has been helping startups succeed since 2013. It has an excellent reputation for customer service, which is underpinned by the guarantee of a personal advisor on hand throughout the lifetime of your startup loan.
- Low starting rates from 6.00%
- Personal loan advisers are available to answer any questions
- High approval rates for those that meet the criteria
- You’ll need a credit score of at least 700
- Funding can take up to five days to be disbursed
GoKapital offers excellent startup packages with rates as low as 6.00%. However, you’ll need to meet some very strict criteria – a credit score of 700 and evidence of paying off other personal installment loans – before you can apply.
GoKapital loans might be a little difficult to get, but are definitely worth it for those with good credit. If you meet the criteria, we highly recommend making it your first or second stop.
Key Features of The Best Business Startup Loans
Many new business owners have no idea where to find startup loans. To get you started, check out our list of the best options below.
Up to $150,000
Minimum credit score of 600
Funds could be in your account within 24 hours
Fora Financial review
Offers loans of up to $500,000
Minimum credit score not disclosed
At least six months of business history
Fora Financial offers merchant cash advances and short-term loans
Borrowing amount determined on application
9.99% - 26.99%
Minimum credit of 450
Fundera offers a range of credit cards and approval times vary
$500,000 - $750,000
6.00% - 17.00%
Minimum credit score of 680
It usually takes between two to four weeks to arrange funding
$25,000 - $500,000
6.00% - 18.00%
A minimum credit score of 700
Evidence of previous installment loans
Funding is usually approved and disbursed within five business days