Applying for loans for small businesses is quite common practice now. Now, we will compare and evaluate various small business loan providers for you to choose the most suitable plan.
- Lendio (Overall Rating: 9.9)
Applying for a Lendio loan is free, and it won’t impact your credit score; it also has no fee or obligation. Lendio has a streamlined application process and unique algorithms to match your loan needs. They have helped small business owners get more than $1.4 billion in loans. You are eligible for Lendio loans as long as your credit score is equal to or more than 580. The interest rate can be as low as 8% with a term as long as 1 to 3 years. The loan amount varies from $2,500 to $500,000. If you have reliable credit and you have been running for two years or more, you will have a great chance of getting a short-term loan.
- LoanBuilder (Overall Rating: 9.6)
Loanbuilder provides loans ranging from $5,000 to $500,000 for 13 to 52 weeks. The minimum credit score is 600 for an applier. LoanBuilder offers flexible loan terms that can be adjusted to suit the needs of the business with no additional fees for origination or early repayment. When applying for a LoanBuilder loan, you should have run your company for at least 9 months with $3,500 in monthly revenue. These are just basic requirements, and companies may be required to provide other financial benchmarks for larger loans. LoanBuilder is a very fast fund resource for small businesses because they can get funding on the same day.
- LendingTree (Overall Rating: 9.4)
LendingTree is the largest online lending market in the United States. It links the borrower to multiple lenders in order to find the best lender for every borrower. Its financial products include home loans, reverse mortgages, home refinancing, auto loans, business loans, student loan refinance, and personal loans. For small business owners, they should have operated their business for at least 1 year with annual revenue over $96,000. A small business loan amount from LendingTree is between $2,000 and $1,000,000. LendingTree is one of the two lenders that do not have a clear requirement for credit scores.
- Kabbage (Overall Rating: 9.1)
All loans for Kabbage are subject to credit approval. Kabbage can approve your application within minutes. Its loan amount is up to $ 200,000. But Kabbage needs to check your business data and verify your bank account before funding your small business. You are likely to be approved if your company has been in business for more than 1 year, and the monthly revenue is at least $4,200. Kabbage is the other lender that does not have a clear requirement for credit scores. These are only minimum eligibility criteria, and there is no guarantee that your Kabbage loan application will be successfully approved.
- One Park Financial (Overall Rating: 8.9)
If your small business is in desperate need of money to develop its business, and can’t wait for the bank’s slow approval process, or is less likely to qualify for traditional commercial loans, One Park Financial would be your best choice. They will provide you with lenders who focus on small- and medium-sized businesses, and they are happy to work with people with imperfect credit scores. You are likely to be approved if your company has been in business for more than 3 months, and the monthly revenue is at least $2,500. One Park has the least demanding among all the five lenders above, requiring a credit score of only 500.
In a word, each lender has different criteria, but they usually consider similar factors like personal credit scores, how long you’ve run the company, and the annual income. They will also consider your cash flow and ability to repay debt.
Featured image: DepositPhotos – SergPoznanskiy
