Best Small Business Loans

Best small business loans

Small mom and pop shops are what have helped shape this country. In 2019 alone, there were 30.7 million small businesses in the U.S.

Are you currently a business owner or dreaming of being one? You’ve come to the right place. In this article, explore our top small business loans for 2020, to get your business going.

Read on to learn just exactly what loans can help you make your dreams of funding come true.

Best Small Business Loans in 2020


SmartBiz offers SBA loans. These are best for already established businesses that want to refinance the debt or pay for an expansion.

The pros are:

  • It’s quicker than getting this type of loan from the bank
  • Competitive rates

The cons are:

  • There are strict rules on how you use it
  • You’ll need a personal guarantee or business lien
  • You have to have strong financials

Credibility Capital

They offer low-cost business loans that are ideal for small-business owners who have secure credit.

The pros are:

  • There’s no prepayment penalty
  • You can pay extra monthly to save on interest
  • Competitive rates

The cons are:

  • Might require a personal guarantee
  • Requires a business lien
  • Not available in all states
  • Short repayments lead to higher payments


Bluevine is excellent for businesses that need cash for lengthening payment terms and have flexibility when paying suppliers. Great when you’re looking for small business loans for bad credit.

The pros are:

  • No account closure, maintenance, prepayment, or origination fees
  • Great for businesses that have just been open a few months
  • Credit requirements are low

The cons are:

  • Established businesses might receive better terms
  • A weekly fee for invoices
  • Sales requirements


OnDeck offers the benefit of very little paperwork and significant funds. You can choose between lines of credit or term loans. OnDeck is a good option for businesses that are less-established and need cash fast. If you can pay it back quickly, this is a good option as well.

The pros are:

  • Quick funding
  • Simple application process
  • Lower credit scores accepted
  • Long-term loans
  • Short-term loans

The cons are:

  • Origination fees
  • You’ll need to be an established business
  • You’ll need strong sales the previous year
  • Can receive higher interest rates
  • The line of credit option has a limit


Fundbox is considered one of the bad credit small business loans. They offer lines of credit and have the option to connect to your accounting software or banking account. They’re great for businesses that don’t qualify for low-interest term loans.

The pros are:

  • Quick funding
  • Automated application
  • Requirements to be approved are low

The cons are:

  • High APR
  • Low loan amounts


Kabbage offers lines of credit. They can have you connect straight to your bank account, so no tax documents or credit scores are required.

If you need fast capital, then Kabbage is the right fit for you. Be wary of high fees, though. You can receive your line of credit through a physical card, your bank account, or PayPal.

The pros are:

  • No credit required
  • Quick approval process
  • Multiple ways to receive funding

The cons are:

  • Not an easy to understand fee structure
  • High APR and rates

Funding Circle

If you’re an established business looking to refinance debt or pay for an expansion, this is a great option for you.

The pros are:

  • No minimum revenue required
  • Cash is available within days
  • Competitive rates

The cons are:

  • Requires a personal guarantee
  • Requires a business lien

National Funding

They have funded over 3+ billion dollars to businesses. National funding is best for when you’re looking to borrow for the short-term. You can enjoy no upfront costs as well. When you’re looking for small business loans for bad credit, National Funding is a great option.

You’ll still need a strong yearly business revenue and a precise balance in your bank account.

The pros are:

  • You can enjoy early payoff discounts
  • Online applications
  • Money within a day
  • No upfront costs

The cons are:

  • Rates can be high
  • Repayments are required
  • Website isn’t educational


With Fundation, you can have lines of credit or installment loans. The terms and rates are similar to bank loans. They’re suitable for businesses that have been around for at least a year, have a few employees, and make strong sales.

If you have fair credit, Fundation is a good option for you. If you won’t qualify for a bank loan, then Fundation probably isn’t for you.

The pros are:

  • You can build business credit
  • No prepayment penalties
  • Payment options of biweekly or monthly
  • You’ll have an account manager

The cons are:

  • You’ll need a blanket lien
  • Qualifications can be hard to meet


StreetShares is an option for those looking for an online lender. You can choose between lines of credit or short-term installment loans. They now offer contract financing (like invoice factoring) as well.

They’re very veteran-friendly, but non-veterans can apply. They offer low fees and rates. Great for those with fair credit.

The pros are:

  • There are no prepayment penalties
  • Excellent customer service
  • Lower qualifications

The cons are:

  • Not great for larger businesses


LendingClub is a peer-to-peer lender. That means they bring together investors and borrowers. This is ideal for those with a median amount of sales the previous year.

The pros are:

  • Fixed interest rates
  • Large loans
  • Don’t need a large number of sales annually

The cons are:

  • There are origination fees
  • You must have at least a fair credit score
  • Need to be in business at least a year


Prosper and LendingClub are similar. Except, Lending Club has a separate program for small business loans. You can use Prosper’s unsecured personal loans for small business means.

The pros are:

  • Low origination fee
  • Lower APRs

The cons are:

  • Lower loan max

Five Star Bank

Five Star Bank is an SBA lending partner. While it can take longer than other lenders, it offers excellent terms and rates. They’re ideal for high-qualified businesses looking for long-term financing.

The pros are:

  • A preferred SBA lending partner
  • Good terms, rates, and amounts
  • Available for a variety of needs

The cons are:

  • You’ll need a personal guarantee
  • A blanket lien
  • Have to meet high requirements
  • Long application process

Celtic Bank

Celtic Bank is also a preferred SBA lender with excellent terms and rates. They also offer usage for a variety of needs.

Celtic Bank is ideal for those with an established business who are qualified and don’t need funding immediately.

The pros are:

  • You can enjoy SBA loans across the U.S.
  • Variety of financial needs
  • Great terms and rates
  • Great amounts on the market

The cons are:

  • You’ll need a personal guarantee
  • You’ll need a blanket lien
  • Have to meet high requirements
  • Long application process

PNC Bank

PNC Bank is great when you’re looking for lines of credit. You can enjoy flexible unsecured lines of credit. PNC Bank is for those looking to meet working capital needs, fill cash flow gaps, or have money on hand for emergencies.

While the application isn’t as quick as some lenders, you can receive an offer in a day. You can also make an initial draw from your credit line when you’re doing the online checkout process.

The pros are:

  • No fees
  • Low-interest rates
  • Quick funding
  • Flexible for any business reason
  • Revolving line of credit

The cons are:

  • A personal guarantee is required
  • There’s a time in business requirement
  • You’ll need a high credit score

Balboa Capital

Balboa Capital offers multiple types of funding, but their best-known is equipment financing. They offer competitive rates for long-term investment.

They also have an easy application process.

The pros are:

  • You can choose quarterly or monthly payments
  • Competitive terms
  • Flexible requirements
  • Corporation-only guarantee option

The cons are:

  • Origination fee
  • Equipment financing and leasing
  • You’ll need a hard credit pull

Exploring Small Business Loans of 2020

Now that you’ve explored some of the the best small business loans of 2020, you should have a better idea of which loan will work best for your business. Remember, it’s not just about the best interest rate, but also the best repayment terms, and which one you qualify for.

Would you like to learn more about financials, including personal loans? Check out our personal loan rates from a variety of companies today.

Frequently Asked Questions

Learn the small business loan basics

How do small business loans work?

Small business loans are for helping with different business expenses. Some loans are for uses such as a commercial mortgage, purchasing equipment, or working capital, while others are just for general funding.

What are different types of business loans?

Various types of business loans include the following:

  • Equipment loans
  • Term loans
  • Business lines of credit
  • Merchant cash advances
  • Commercial mortgage loans
  • Franchise loans
  • SBA loans
What is an equipment loan?

If you’re looking to buy equipment or machinery for your business, this loan is the right fit for you. Some of these loans can be available with no down payment, while others require it.

The equipment will generally be considered as collateral in case you don’t pay on your loan. Collateral means that if you don’t pay the loan, the items can be taken from you. Instead of taking out a loan, you can also lease the equipment you’ll need.

You can also take out business credit cards to help fund your equipment.

What is a term loan?

When you’re looking for small business startup loans, term loans are a great option since you’ll receive the money in a lump sum. You’ll pay interest and the principal on a fixed term.

What is a merchant cash advance?

Merchant cash advances are another great option when you’re looking for cash fast. You’ll receive a lump sum and give part of your future sales. There will be fees and interest as well.

Your fee will be based on your risk assessment. If you’re at a lower risk to the lender, then they’ll give you lower costs. Since there are high-interest rates with this option, it’s not the ideal choice.

What are business lines of credit?

This option is similar to a credit card and has flexibility. Interest will be charged for the amount of money you borrow. You take what you need and access it anytime.

What is a commercial mortgage loan?

Commercial mortgage loans are used for commercial property. Whether you’re looking to refinance, develop, or buy commercial property, this option could be for you.

What is a franchise loan?

If you’re looking to expand or purchase a franchise, then this loan is a great option. You can use this loan for franchise expenses such as a franchise fee or marketing fees. They can also apply to business operating expenses. Some lenders also offer traditional term loans for franchises.

What is an SBA loan?

Although SBA loans isn’t lending, it is guaranteed by the Small Business Administration (the government). Instead, it works with lenders who they approve to lend businesses money.

The SBA guarantees a portion of your loan, so if you can’t pay it, they’ll cover that portion.

How do I get a small business loan?

To achieve a small business loan, you’ll want to have a business plan in place, have a good credit score, and compare options. Small business loans for poor credit are harder to find but not impossible when you have strong sales and the right amount of money saved up.

How to pick the best small business loan?

While banks offer lower APRs, online lenders are ideal for newer or smaller businesses to qualify. You’ll want to make sure you can financially handle the interest rate, terms, and fees.
Take a look at lenders who offer high loan amounts if you need a large percentage. Also, try to find the lender with reasonable interest rates.

You’ll want to find a lender who has flexible terms that can help with repayment. Before signing up, make sure you meet all the minimum requirements, and you fully understand all of them.