The best working capital loans
1. LoanBuilder
LoanBuilder is a PayPal service which merged with other alternative lenders such as Swift Capital to provide a unique lending experience. To apply for a loan, you are asked to fill in your basic information and your tax ID number. If your details show that you pre-qualify, you can check the terms and the rates before applying for a loan.Small businesses can qualify for a loan between $10,000 and $500,000. The loan comes in one lump sum and the repayment period is usually between three months and one year. LoanBuilder works with factor rates instead of APRs. This means that you will repay a certain amount of interest even if you repay quickly.
The most amazing thing about LoanBuilder is that you donât need a PayPal account to access a loan. Furthermore, this is one of the most reputable business loans for working capital and it is transparent about loan processing and loan qualification criteria.
2. Kabbage
This working capital loan uses a variety of information to determine if you are eligible for a loan. It uses information about your activities on other companies to evaluate your credit score. You can allow them to use your e-commerce data, monthly revenue, your accounting data, your banking data and other information from reputable companies to enable them to check your eligibility.
This loan option allows you to borrow from $2,000 to $100,000 and the repayment period goes up to six months. Its fees also vary from 1% to 12% in the first two months then drops to 1% in the remaining months. This option is suitable for startups who have no previous financial records or business assets. If you need a Kabbage Card, you can get it free of charge. However, you should limit the number of transactions that you make since each purchase that you make using the card has its own fees.
3. OnDeck
Unlike other business loans for working capital, OnDeck has a number of packages. The platform offers small businesses with several packages such as lines of credit, working capital loans, and term loans. Its line of credit has a lower APRs but it compensates this by having a higher requirement for revenue and credit score.The company has operated since 2007 and it has lent to more than 40,000 businesses. This platform is one of the most reliable business loans for working capital since it offers Quick loan approval. You can apply for a loan and get it even in 24 hours. OnDeck is good for business expansion due to its accessibility.
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