NerdWallet’s Small-Business Lender Reviews for 2016

Which alternative lender can best help your company? NerdWallet’s small-business lender reviews take into account your business’s qualifications and needs.  Remember to consider APRs — the true cost of borrowing, including all fees — as you compare small-business loans. Lenders are listed based on cost of funding, beginning with the least expensive. Click on a lender for more information.

SmartBiz: Easier SBA loans

Small Business Administration loans generally are the least expensive financing option for small-business owners, but many entrepreneurs are intimidated by the long and rigorous application process. It’s a dilemma SmartBiz is trying to address with its online lending platform geared toward offering U.S. SBA loans of $30,000 to $350,000.

Real-world scenario: We followed a borrower through the SmartBiz loan application process.

Loan amount: $30,000 to $350,000. APR: 7% to 8% Loan term: 10 years Approval time: Within seven days of submitting application Read our SmartBiz review

Get started at SmartBiz Before you apply for a SmartBiz loan, find out whether you meet the lender’s minimum qualifications. 600+ personal credit score 2+ years in business $50,000+ in annual revenue Personal guarantee required No outstanding tax liens No bankruptcies or foreclosures in last three years No recent charge-offs or settlements Must be current on government-related loans Do I qualify? ▾

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Funding Circle: Solid choice for expansion

Funding Circle is a good option for stable companies that have been profitable at least one of the past two years. With loans of $25,000 to $500,000, the lender might be a good fit if you’re looking to make a major purchase to pay off over one to five years.

Here’s a start-to-finish look at the Funding Circle application process.

Loan amount: $25,000 to $500,000 APR: 8% to 33% Loan term: 1 to 5 years Approval time: Prequalification in minutes, offer letter in 2 to 3 days, average of 10 days to funding Read our Funding Circle review

Get started at Funding Circle Before you apply for a Funding Circle loan, find out whether you meet the lender’s minimum qualifications. 620+ personal credit score 2+ years in business $150,000+ in annual revenue Profitable at least one of the last two years No bankruptcy in the last seven years Personal guarantee required Do I qualify? ▾

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Lending Club: Low APR for strong businesses

Lending Club has flexible repayment terms on loans of $5,000 to $300,000 — and some borrowers may qualify for APRs comparable to those from banks. But good credit and a well-established business are among requirements.

Check out our detailed explainer on what it takes to apply for a Lending Club loan.

Loan amount: $5,000 to $100,000 APR: 8% to 32% Loan term: 1 to 5 years Approval time: Funding as fast as two days but typically in a week or two Read our Lending Club review

Get started at Lending Club Before you apply for a Lending Club loan, find out whether you meet the minimum qualifications. 600+ personal credit score 2+ years in business $75,000+ in annual revenue Own at least 20% of the business No recent bankruptcies or tax liens Provide collateral for loans and lines of credit of more than $100,000 Lending Club is currently unavailable to borrowers in Iowa and Idaho. Do I qualify? ▾

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Dealstruck: Inventory financing

Dealstruck, an online small-business lender founded in 2013, offers three types of small-business loans, including inventory financing for 100% of inventory purchases up to $500,000.

We deconstruct the Dealstruck loan application process.

Loan amount: $50,000 to $250,000 APR: 11% to 28% Loan term: 6 months to 4 years Approval time: Prequalification in minutes, offer letter in 2 to 3 days, average of 10 days to funding Read our Dealstruck review and learn more about the application process

Get started at Dealstruck Before you apply for a Dealstruck loan, find out whether you meet the lender’s minimum qualifications. 600+ personal credit score 1+ year in business $12,500+ in monthly revenue Breaking even or profitable Personal guarantee and a lien on business assets required Do I qualify? ▾

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Fundation: Midprime loans for companies with 3+ employees

Founded in 2011, Fundation is an online direct lender offering small-business loans, from $20,000 to $500,000, to established businesses looking to expand, refinance debt or boost their working capital. It’s a midprime lender — more expensive than a bank, but less expensive than short-term cash-flow lenders. Fundation isn’t for solo entrepreneurs; you need at least three employees to qualify.

Loan amount: $20,000 to $500,000 APR: 8% to 30% Loan term: 1 to 4 years Approval time: Same day but average time is 3 to 5 days Read our Fundation review

Get started at Fundation Before you apply for a Fundation loan, find out whether you meet the minimum qualifications. 600+ personal credit score 2+ years in business $100,000+ in annual revenue 3+ employees Personal guarantee required Lien on business assets required Do I qualify? ▾

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Lighter Capital: Small-business loans for tech companies

Lighter Capital is an alternative lender that provides revenue-based financing, from $50,000 to $2 million, to small businesses focused on software and technology services. This type of loan differs a bit from traditional financing: Your monthly repayment rises and falls based on your monthly revenue, unlike with traditional small-business loans, where you repay a fixed amount of money each month.

Loan amount: $50,000 to $2 million, depending on your revenue APR: 10% to 25% Loan term: 5 years Approval time: About four weeks Read our Lighter Capital review

Get started at Lighter Capital Before you apply for a Lighter Capital loan, find out whether you meet the minimum qualifications. Must be a tech company (software, software as a service, tech service or similar online or digital business) Minimum $15,000 revenue per month in each of the last three months Gross margins of at least 50% (gross profit divided by revenue) Must use the money for growth purposes (product development, sales and marketing, hiring staff) Do I qualify? ▾

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StreetShares: Veteran-focused financing

StreetShares is a peer-to-peer lending company that matches small business borrowers with a group of investors with similar characteristics, be it location, gender or status. Its financing is a good option for U.S. military veterans and startups. Your borrowing is limited to 20% of your revenue.

Loan amount: $2,000 to $100,000 APR: 8% to 40% Loan term: 3 to 36 months Approval time: 1 to 5 days Read our StreetShares review

Get started at StreetShares Before you apply for a StreetShares loan, find out whether you meet the lender’s minimum qualifications. 600+ personal credit score 1+ year in business $25,000+ in annual revenue No bankruptcies in the past three years StreetShares is currently unavailable to borrowers in North Dakota or South Dakota. Do I qualify? ▾

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BlueVine: Good bet for B2B companies

Alternative lender BlueVine is a solid option for businesses that sell products or services to other companies and need an advance on invoices. BlueVine offers loans of $5,000 to $250,000 that can help companies bridge cash-flow gaps.

Loan amount: Up to $50,000 APR: 16% to 62% Loan term: Repaid over 6 months Approval time: As fast as 24 hours Read our BlueVine review

Get started at BlueVine Before you apply for a BlueVine line of credit, find out whether you meet the minimum qualifications. 600+ personal credit score 6+ months in business $60,000+ in annual revenue Personal guarantee required Do I qualify? ▾

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Fundbox: No-credit-check invoice financing

Fundbox provides an advance of up to 100% of the value of your outstanding invoices. The company offers advances of $500 to $30,000 for businesses that sell products or services to other companies. Fundbox does not conduct a credit check.

Loan amount: $500 to $100,000 APR: 13% to 68% Loan term: Equal repayments over a 12-week period Approval time: Instant approval with funding in 1 to 3 business days Read our Fundbox review

Get started at Fundbox Before you apply for Fundbox’s invoice financing, find out whether you meet the lender’s minimum qualifications. No minimum personal credit score required No minimum annual revenue required Must use online accounting software that can link to Fundbox (such as Quickbooks, FreshBooks, Harvest) Do I qualify? ▾

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OnDeck: Fast cash for growth

If you’re looking for fast funding to invest in your company’s growth, consider OnDeck, an online lender that has originated $4 billion in small-business loans since 2007. The lender offers term loans from $5,000 to $500,000 as soon as 24 hours after approval.

Loan amount: $5,000 to $500,000 APR: 16% to 98% Loan term: Repaid daily or weekly for 3 to 36 months Approval time: Decisions within minutes; funding in as little as 24 hours Read our OnDeck review

Get started at OnDeck Before you apply for an OnDeck loan, find out whether you meet the lender’s minimum qualifications. 500+ personal credit score for lines of credit 1+ year in business $100,000+ in annual revenue for lines of credit No bankruptcies in the last two years Personal guarantee required Do I qualify? ▾

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Kabbage: Boost working capital

If you need quick cash to stock up on inventory, fix broken equipment or cover other short-term expenses, a Kabbage line of credit of $2,000 to $100,000 might be a good fit. When reviewing would-be borrowers, Kabbage emphasizes accounting, banking and e-commerce data over personal credit score.

Kabbage’s application process is also quick and easy. Here’s our step-by-step guide.

Loan amount: $2,000 to $100,000 APR: 32% to 108% Loan term: 6 or 12 months Approval time: A few minutes to several days Read our Kabbage review

Get started at Kabbage Before you apply for a Kabbage loan, find out whether you meet the minimum qualifications. No minimum personal credit score required 1+ year in business $50,000+ in annual revenue A business checking or online payment platform required Do I qualify? ▾

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Prosper: Small-business loans for starting up

It’s difficult to get startup loans for small businesses. Credit cards are an alternative. Another choice is a personal loan from Prosper. The peer-to-peer company, founded in 2005, offers unsecured personal loans you can use to start your business.

Learn More at Prosper

 
For a side-by-side comparison that takes into account lender trustworthiness and other factors, go to:

Compare business loans

 
This article was updated June 8, 2016. It was originally published Dec. 9, 2015.