The Best Small Business Loan Services
Financial reinforcement is a necessity for any business—irrespective of whether your company has just started or has been operational for a while.
When budget challenges come knocking, entrepreneurs turn to small business loans. Financing assistance helps organizations cover expenses related to new equipment. You can also use loans to settle payroll or acquire additional resources. Whatever the purpose, getting a small business loan is the quickest and most feasible solution.
A small business loan is similar to a personal loan in the sense that once you apply for it and submit the necessary documents, your creditworthiness will be determined by lenders. You might be required to submit a business plan, financial paperwork, or provide collateral when applying for small business loans.
And while that does sound simple, it can be overwhelming trying to sort through the different kinds of small business loans, interest rates, terms, etc. And that’s why we’re here—to help you understand the top five small business loan services.
BlueVine
When you need instant working capital for your organization’s short-term needs, then BlueVine’s credit line should be top of your list of lenders.
A reputable financial technology organization, BlueVine offers lines of credit. And though they can provide you with small business loans, they are not banks.
One of their highly favored services is invoice factoring. This becomes a saving grace for small businesses that are struggling with cash flow challenges. Small companies can get a bigger credit limit by providing a money upfront offer of up to 85 to 90%.
BlueVine is willing to offer up to 5-million for their invoice factoring service as long as you are ready to pay 0.25% interest every week. All you need to apply for a BlueVine small business loan is a 530 FICO score, a business established for at least three months or more, a business-to-business (B2B), and monthly revenue of $10,000.
One of the main reasons why BlueVine is a business go-to is because of its fast approval system. Say goodbye to long waits and repeat follow-ups. The best part? Imagine having funds released within 12 to 24 hours from the time of application!
With its flexible terms, you can find a payment term that will suit your needs and have less pressure when it comes to payment. As long as you are not in North and South Dakota and Vermont, your state qualifies for this kind of small business loan.
OnDeck
One of the best options when it comes to small business loans is OnDeck. They, too, offer a quick-term loan for small businesses that need instant cash.
If you cannot keep a stellar credit score (between 600 and 720) but want a chance to expand or make changes, OnDeck is your next go-to loan service option.
The two main kinds of loans that OnDeck provides are business lines of credit and short-term business loans.
And what makes this lending service a top favorite is its prepayment advantages, loyalty, and quick funding. Talk about fast and reasonable!
One of OnDeck’s edges is its prepayment advantages allow you to pay off your loan entirely and have the remaining interests be waived without any additional charges.
And if you have previously borrowed from this lender and were an excellent payor, OnDeck will waive any particular interest rate if you apply for a new loan. You can even obtain a 0% origination fee upon review.
But one thing that you have to understand with OnDeck’s policy is that it takes a blanket lien on all of your business’s possessions. They will require you to sign and secure a personal guarantee that indicates that OnDeck can claim your assets when you fail to make your payments.
This can be a little risqué, but it also promotes responsibility and accountability on your part as a borrower. If you can’t risk losing your assets, do your part and ensure that your financial obligations are always met.
OnDeck can release your borrowed cash within the same day and with minimal paperwork and effort, making it convenient for you to focus more on how to strategize better financially.
And OnDeck understands that everything can be done online now, so you can also submit your small business loan application online. Note that the credit limit of OnDeck starts from $100,000 to a maximum of $250,000.
FundBox
Another small business loan service that you can consider when you need some quick financial fix is Fundbox.
Fundbox is an innovative small business loan service platform that relies heavily on AI and technology. This lending service can provide a decision regarding your loan application in as little as three minutes—one of the fastest turnaround times on the market today.
It also utilizes the Insights Advantage Program, where borrowers can link their organization’s accounts, get a cash flow analysis and forecast, view real-time balances, and experience possible business circumstances with a loan involved.
This simulation can help you have a real-like overview of how it would be like when you have an existing loan of this specific amount. Not only will you know the impact on your office’s finances, but you will also learn how to develop feasible strategies to mitigate the effects of an additional loan.
For your organization to qualify for a small business loan from Fundbox, you need to have a suitable business bank account for a minimum duration of three months. You also need a credit score of at least 600 and a business running for at least six months with the lowest annual revenue of $100,000.
Once approved, the lender will release your cash within the next business day.
Funding Circle
Funding Circle is quite generous when it comes to their loan limit—you can borrow up to $684,000. And with the application process done online, it makes everything convenient and hassle-free for you.
Loans are almost synonymous with interest rates, which is a significant factor in deciding which loan services you apply for.
Sure, lenders might release the money you need in a matter of hours, but in exchange, you get skyrocketing interest rates that you have to pay every month for many, many years.
Why do we bring this up? Because compared to other small business loan services, Funding Circle is proud of its lower interest rates. It offers lines of credit, SBA loans, working capital loans, invoice factoring, and merchant cash advance.
This lending service is a practical option if you are looking for a refinancing solution for your business expansion. You can also consider Funding Circle if you need to refinance an existing debt.
Funding Circle is quite generous when it comes to their loan limit—you can borrow up to $684,000. And with the application process done online, it makes everything convenient and hassle-free for you.
They have a reasonable estimated completion time of review and approval of three business days. By the third day, you will know your loan status and have a better forecast of how your company will fare once your loan is disbursed.
As a plus, Funding Circle also doesn’t need your business’s annual revenue, so new business owners are also welcome to avail their loan services.
That said, when you process your application with Funding Circle, you have to be willing to provide a personal guarantee and a business lien.
Lendio
Lendio is your one-stop business funding solution. And like a loan broker, Lendio doesn’t originate the loans, but it matches you with business funders you qualify for. Not sure how that works? Let us explain!
Lendio boasts a network of more than 75 business lenders, and if you are a match, then one or more of those lenders can take up your application for approval. Lendio has ten kinds of funding options, and you can check which small business loan is right for you with their convenient application. Not looking forward to long application processes?
Worry not!
As a small business loan service marketplace, Lendio boasts a fast and efficient system where the application requires just 15 minutes of your time.
There are zero fees involved and no obligations when filling out an application form. This action does not in any way influence your current credit. Once the application form is filled, you can compare all the lenders’ terms and interest rates under the Lendio network.
Concerned that you’ll struggle to identify what works best for you? Lendio is with you in every step, and with their expertise and recommendations, you can choose the best lender for your requirements. Once you get approved by your chosen lender, your funding will be disbursed in 24 hours, giving now that additional capital for your business needs.
Conclusion
Small business loan services can be the ultimate solution to urgent financial needs. And although quick disbursements can be highly appealing, consider other factors like the interest and the payment terms and lien conditions before sealing the deal.
Remember that loans—significant or not—are a commitment and an obligation, and you must do your fullest to ensure repayments are on time.
