Compare Small-Business Lenders 2019

Michelle Adams

If you’re exploring the different options to help fund your business, there are a range of practical solutions. Term loans and business lines of credit are often the best types of finance to apply for if you need financing.

Business lines of credit allow you to withdraw money from a predetermined limit – they’re like a credit card without the cash advance fees. They’re an excellent option for business owners who need access to cash.

While business lines of credit typically have higher interest rates than standard business loans, they also offer much more flexibility. Unlike a traditional business loan, you don’t have to pay any interest on the capital that you don’t use. It’s perfect for business owners who need flexibility with their funding. We recommend that most business owners obtain a line of credit – it costs you nothing if you don’t use it and it’s perfect for emergencies.

If you know exactly how much money you will need, you may be better to apply for a term loan. Interest rates are lower, and you’ll have a fixed payment plan that will help you better manage your business’s debt.

Here at Business Line of Credit Hub, we research and test lenders to see who provides the best services. We want our readers to enter the lending world with a foot in the right direction.

What Type of Lender Should I Look For?

We recommend that our readers aim to work with online lenders. As a business owner, you often don’t have the time or resources to apply for credit in a traditional way. Heading to a bank branch and filling out lengthy applications slows down the entire process. Online lenders can provide you with instant decisions – they also set up your account much quicker.

If you want to get your business line of credit or term loan quickly, we highly recommend that you work with an online lender. With hundreds to choose from, you’re sure to find one that fits your requirements.

Comparison Table

Comparing lenders side-by-side is often the best way to determine which is most suitable for you. We’ve created a comprehensive comparison table to help you better understand the pros and cons of the top lenders in the industry. Make sure to read all the information provided in the table below:

COMPANY

Compare Small Business Lenders 2018
  • Fast Cash
  • Offers factoring services
  • Quick Application

GOOD FOR

  • Smaller loans
  • New Business Owners
  • Low-Revenue Businesses

REQUIREMENTS

  • Over 600 PERSONAL credit score
  • Over $120,000 in business related revenue
  • Over 6 months in business

AMOUNT AND APR

  • Maximum loan of $200,000
  • Min: 15%
  • Max: 78%

COMPANY

Compare Small Business Lenders 2018
  • Transparent terms
  • Loan calculators
  • Lending resources

IDEAL FOR

  • No credit
  • Poor credit
  • Fast funding
  • Emergencies

HOW TO QUALIFY

  • NO credit needed
  • In business for a year
  • Over $50,000 revenue per year

AMOUNT AND APR

  • Maximum of $100,000
  • Min: 24%
  • Max:99%

COMPANY

Compare Small Business Lenders 2018
  • Pre-credit check quotes
  • Other financing options (both personal and business)
  • Good reputation

IDEAL FOR

  • Businesses with history
  • Businesses with good credit
  • Large lending amounts
  • Good interest rates

HOW TO QUALIFY

  • High Credit – 600
  • Over two years in business
  • Over $75,000 in revenue

AMOUNT AND APR

  • Maximum of $300,000
  • Min: 8%
  • Max: 35%

COMPANY

Compare Small Business Lenders 2018
  • Online chat support
  • Fast application
  • Informative blog

IDEAL FOR

  • Quick access to cash
  • High earning businesses
  • Good interest rates

HOW TO QUALIFY

  • High Credit – 600
  • Over a year of operation
  • Over $100,000 in annual revenue

AMOUNT AND APR

  • Maximum of $100,000
  • Min: 14%
  • Max: 40%

COMPANY

Compare Small Business Lenders 2018
  • Special deals for veterans
  • Other financing options
  • Good reputation
  • Blog with resourceful lending information

IDEAL FOR

  • Established personal credit scores
  • New businesses
  • Low income businesses
  • Decent interest rates

HOW TO QUALIFY

  • High Credit – 600
  • Over a year of being in business
  • Over $25,000 in annual revenue

AMOUNT AND APR

  • Maximum of $100,000
  • Min: 9%
  • Max: 40%

Other Things to Consider

While the above chart gives you a pretty solid idea of what companies are worth working with, you still need to consider a few other things before making your decision. While price and accessibility will tend to be your primary considerations – you don’t want to overlook some other factors.

Below we will explain what other factors are important to consider:

Reputation

While the cost of the loan is often the most critical component to consider, you also need to make sure to work with a lender you can trust. There is no point getting drawn into a lending situation based on price alone. Working with a dodgy lender can be an absolute nightmare – it can cost you long into the future.

If you head to Consumer Affairs or the Better Business Bureau, you can search for lenders and read testimonials about their past performances. Customers will review the company to give you a better understanding of what they’re like to work with. It’s essential that you take this step to ensure that you don’t work with a bad lender.

Dodgy lenders can end up ruining your credit score – you may even have to pay hidden fees that you were not previously sure about. There are plenty of good financers in the business, make sure that you choose one of them!

Platform

Whether you decide to use a traditional lender or online lender, it’s essential that you work with a lender that has a great online platform. Modern technology has allowed borrowers to have access to much better services through their lenders. Your lender should have an online portal where you can access information about your loan. Your loan balance, payment options, interest rates, and loan statistics should all be readily available.

You should also be able to pay for your loan directly via the internet. Not having an online payment processor is an easy way for you to miss payments. We highly recommend that you set up an automatic payment that withdraws from your bank account without any manual input. On time payments are the best way to build your business credit score.

Verdict

The right lender for your business will depend on a variety of factors. You will need to determine which lenders you are eligible to apply for. You don’t want to waste your time applying for a lender that isn’t going to approve you – it will also damage your credit score.

If you’re still not sure what type of finance is right for your business, make sure to check out some of the other resources we have on this page. We’re experts on various types of finance – we provide non-biased advice on the best ways to fund your business!

Michelle Adams
Business Consultant

Michelle worked at a teller at her local bank while she was earning her degree in economics. Then, after completing an MBA, she came back to the bank as a loan officer. As a result, Michelle is uniquely suited to providing advice to small businesses when it comes to selecting the best loan and credit products.