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Best small business loans of June 2025

Written by
Marlese Lessing
Edited by
Rob Watts
Reviewed by
Thomas Brock, CFA, CPA
Updated: June 10, 2025

What to know first: A small business loan can help cover a variety of business-related expenses, including startup costs, working capital or growth opportunities.

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National Funding: Best for early payoff discount

4.4
Bankrate Review
Loan amount
$5k-$500K
Term: 4 - 24 months
Interest rate
Factor Rates Starting at 1.10
Fastest funding
1 business day
Apply nowArrow Right

on partner site

Credibly: Best for bad credit

4.6
Bankrate Review
Loan amount
$25k-$400K
Term: 3 - 15 months
Interest rate
1.11 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

iBusiness Funding: Best for flexible repayment terms

4.6
Bankrate Review
Loan amount
$25k-$500K
Term: 6 - 84 months
Interest rate
Starting at 7.90% simple interest
Fastest funding
2 business days
Apply nowArrow Right

on BusinessLoans.com

OnDeck: Bankrate 2025 Award Winner Best lender for startups
4.5
Bankrate Review
Loan amount
$5k-$250K
Term: 3 - 24 months
Interest rate
Starting at 27.30% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Fundbox: Best for startups

4.3
Bankrate Review
Loan amount
$1k-$150K
Term: 3 - 6 months
Interest rate
Starting at 4.66%
Weekly Fee
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

American Express Blueprint: Best for low revenue requirements

4.3
Bankrate Review
Loan amount
$2k-$250K
Interest rate
N/A
Fastest funding
Not disclosed
Apply nowArrow Right

on BusinessLoans.com

Bank of America: Best for the bank experience

4.3
Bankrate Review
Loan amount
Starting at $10k
Term: 12 - 60 months
Interest rate
Starting at 8.50%
Fastest funding
Not disclosed
Wells Fargo Business: Bankrate 2025 Award Winner Best small business lender for good-to-excellent credit
4.2
Bankrate Review
Loan amount
Up to $150k
Term: 3 - 24 months
Interest rate
Starting at 10.00%
Fastest funding
1 business day
Accion Opportunity Fund: Bankrate 2025 Award Winner Best CDFI for small business loans
4.1
Bankrate Review
Loan amount
$5k-$250K
Term: 12 - 60 months
Interest rate
8.49- 24.99%
Fastest funding
Not disclosed

Fora Financial: Best for fast approval

4.5
Bankrate Review
Loan amount
$5k-$1.5M
Term: 6 - 18 months
Interest rate
Starting at 1.10 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on partner site

On This Page

A closer look at our top small business lenders

When you’re comparing the best business loans, it’s important to take multiple factors into consideration.

  • Do you meet the minimum requirements?
  • Is this loan designed for your needs?
  • What is the interest rate?
  • How fast can the loan get funded?

Decide which features of a loan are most important for your business, such as flexible terms or startup support, and then take a closer look at the lenders we mentioned by diving into their features below.

National Funding: Best for early payoff discounts

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

National Funding works with hundreds of industries and communities. The lender’s business loans include working capital loans, short-term business loans, equipment financing and leasing. National Funding’s working capital loans offer a 7 percent discount on loan fees if you repay within 100 days of taking out the loan. Its loans range from $5,000 to $500,000, with repayment terms from four months to five years, depending on the loan you get.

Min. Fico Score
660
Loan Amount
Up to $500,000
Min. time in business
6 months
Read Bankrate's Expert Review

QuickBridge: Best for short-term loans

Rating: 4.3 stars out of 5
4.3
Bankrate Score

Overview

QuickBridge aims to provide small business owners with straightforward financing solutions. Like many alternative lenders, QuickBridge specializes in short-term loans and fast funding. A benefit to using QuickBridge is their dedicated Funding Specialists, who can help you find the best financing option for your business. Funds from QuickBridge can be used for any purpose, and you could be eligible for an early repayment discount.

Min. Fico Score
660
Loan Amount
Up to $500,000
Min. time in business
6 months
Read Bankrate's Expert Review

Fora Financial: Best for fast funding

Rating: 4.4 stars out of 5
4.4
Bankrate Score

Overview

Founded in 2008, Fora Financial specializes in short-term financing from everything from term loans to revenue advances to business lines of credit and more. Its loans are accessible to business owners with poor credit, though your business needs established revenue to qualify.

Min. Fico Score
570
Loan Amount
$50,000 to $1.5 million
Min. time in business
6 months
Read Bankrate's Expert Review

iBusiness Funding: Best for flexible repayment terms

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

iBusiness Funding helps small businesses find accessible business loans online, including term loans, SBA loans and USDA loans, a rare selection for a fintech lender. Unlike other online lenders, iBusiness Funding offers short and long-term repayment options. The term lengths for their business loans range from six months to 30 years, depending on which loan you choose. This flexible range allows businesses to tailor funding and repayment terms to their budget.

Min. Fico Score
660
Loan Amount
$25,000 to $500,000
Min. time in business
2 years
Read Bankrate's Expert Review

Fundbox: Best for startup loans

Rating: 4.3 stars out of 5
4.3
Bankrate Score

Overview

Fundbox provides working capital loans for small businesses in the form of unsecured lines of credit. Its credit limits range from $1,000 to $150,000. The company doesn’t use traditional interest rates, instead relying on an amortized weekly fee. Fundbox has a simplified online application, and business owners could be approved in as little as three minutes. Borrowers can use its online calculator to input their desired loan amount and chosen repayment term to see the total borrowing costs. 

Min. Fico Score
600
Loan Amount
$1,000 to $150,000
Min. time in business
3 months
Read Bankrate's Expert Review

American Express® Business Line of Credit: Best for low revenue requirements

Rating: 4.2 stars out of 5
4.2
Bankrate Score

Overview

American Express® Business Line of Credit offers credit from $2,000 to $250,000 with terms ranging from six, 12, 18 and 24 months. Instead of interest, borrowers are assessed a percentage fee each month they have an outstanding balance. The total monthly fees incurred over the loan term range from 3.00% to 9.00% on six-month terms, 6.00% to 18.00% on 12-month terms, 9.00% to 27.00% on 18-month terms and 12.00% to 18.00% for 24-month terms.

* All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

Min. Fico Score
660
Loan Amount
$2,000 to $250,000
Min. time in business
12 months
Read Bankrate's Expert Review

Credibly: Best for bad credit

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

Credibly is a direct lender of working capital loans and cash advances to small businesses needing fast funding. It also partners with other lenders to offer business lines of credit, long-term loans, equipment financing, SBA loans and invoice factoring. It’s often easier for business owners with poor or bad credit to qualify with Credibly than it would be at a traditional bank. 

Min. Fico Score
500
Loan Amount
$5,000 to $600,000
Min. time in business
6 months
Read Bankrate's Expert Review

OnDeck: Best for working capital

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

OnDeck is an online lender specializing in short-term small business loans. Its products include term loans and business lines of credit, which are available in 49 states. Flexible lending requirements and fast funding make OnDeck an appealing option for businesses needing working capital. If approved, businesses can get between $5,000 and $250,000 to use for various business purposes. 

Min. Fico Score
625
Loan Amount
$5,000 to $250,000
Min. time in business
1 year
Read Bankrate's Expert Review

Bank of America: Best for the bank experience

Rating: 4.1 stars out of 5
4.1
Bankrate Score

Overview

Bank of America is one of the nation's largest originators of commercial loans. Its large bank network sprawls across 39 U.S. states, and the brand serves customers in all 50 states. You can get face-to-face help from a representative to guide you through the business loan process. Plus, you can apply for its unsecured Business Advantage term loan online (so long as you have an online banking ID with the bank) by phone or in person, making it a convenient option among bank loans. The bank offers many business loan products, from term loans and lines of credit to equipment and SBA loans.

Min. Fico Score
700
Loan Amount
$10,000 and up
Min. time in business
2 years
Read Bankrate's Expert Review

Wells Fargo: Best small business line of credit

Rating: 4.2 stars out of 5
4.2
Bankrate Score

Overview

Wells Fargo is a well-known financial institution that operates in most states. It offers a wide range of products, including secured and unsecured small business lines of credit and SBA loans. Wells Fargo offers multiple lines of credit to qualifying businesses. Credit lines range from $5,000 to $1 million and come with a revolving or five-year term. In addition to its competitive rates, which start at 10 percent APR, businesses with an unsecured line of credit have access to Wells Fargo's rewards program.

Min. Fico Score
680
Loan Amount
$10,000 to $150,000
Min. time in business
2 years or less, depending on product
Read Bankrate's Expert Review

Accion Opportunity Fund: Best for underserved communities

Rating: 4.1 stars out of 5
4.1
Bankrate Score

Overview

Accion Opportunity Fund is a nonprofit dedicated to serving underserved communities. It provides access to capital and financial resources to empower and help entrepreneurs, particularly those with limited resources and access to funding, to achieve their business aspirations. Accion Opportunity's working capital and equipment loans are designed to eliminate the barrier of strict lending requirements often imposed by traditional banks and provide easy access to funding to help small businesses succeed. 

Min. Fico Score
N/A
Loan Amount
$5,000 to $250,000
Min. time in business
1 year
Read Bankrate's Expert Review

How Bankrate chooses our best small business loan lenders 

Bankrate's trusted small business loan industry expertise

Read our full methodology

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best small business loans, we ensured all loans featured are broadly available across the United States. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, required time in business, minimum annual revenue and fees. Additionally, the featured lenders were evaluated for notable qualities such as funding speed and nontraditional eligibility criteria.
 
When evaluating lenders, we use a 22-point scale to measure quality in five key areas:

How to get a small business loan through Bankrate

Getting the capital your business needs doesn’t have to be complicated. Let Bankrate walk you through the process and help you find the right loan for you. 

Determine if a small business loan is right for your business

Business loans are one of the more straightforward lending products. Like a personal loan, you apply with a lender and get approved for funds depending on your income (in this case, business revenue) and credit history.  

Business loans are useful because they can cover a variety of expenses, including:

  • Operating expenses
  • Real estate leases
  • Payroll
  • Inventory
  • Equipment
  • Acquisitions 
  • Expansions

In addition, business loans can have fewer restrictions than products like equipment financing, lower interest rates than credit cards or invoice financing and get you financing in larger amounts than a line of credit. 

In general, a business can work for you if:

  • You need a lump sum of money. 
  • You can make the monthly payments. 
  • You’re looking for a relatively low interest rate. 
  • You have good credit and business income. 
  • You need the loan for operating expenses, payroll or something that doesn’t come with collateral. 

What are small business loans and how do they work?

Small business loans can be used for a variety of purposes, making them a versatile and popular lending product.

Learn more
Bankrate logo
BANKRATE EXPERT FAQ

When is a business loan a good idea?

Thomas Brock, CFA, CPA

Expert Reviewer

"A business loan makes sense when it helps a company grow or overcome a business challenge without creating unsustainable level of debt. Taking out a loan can be a very prudent way to raise capital, assuming the business has a strong credit profile, consistently positive cash flows and a well-defined plan for using the money and repaying the debt."

Pros and cons of small business loans

Small business loans can be a good or less-optimal option, depending on your situation.

Green circle with a checkmark inside

Pros

  • Longer terms. Installment loans make it possible to pay for an expense over a long period of time. Business loans often extend up to five to 10 years, depending on the lender.
  • Flexible use. Most loans let you use the funds for a variety of expenses as long as they directly benefit your business.
  • Borrower incentives. Some lenders offer unique features to benefit their borrowers, such as an early repayment incentive or rewards program for a business line of credit.
Red circle with an X inside

Cons

  • Not ideal for startups. Newer businesses or businesses with poor credit may have limited options.
  • Documentation requirements. You’ll need ample financial documentation to show you can repay, which can be challenging for new companies to provide.
  • Lengthy approval timelines. Some lenders or types of loans take weeks to approve due to rigorous underwriting processes.

Calculate how much debt your business can handle

Taking on too much debt and quickly spell the end for your business, especially if you have a low-revenue month or are low on cash reserves. Before you apply for a loan, it’s a good idea to calculate your debt-to-income ratio and determine how much you’re comfortably able to borrow. 

In general, you shouldn’t borrow more than 36 percent of your business’ annual income. This counts for all debts you hold, so keep this in mind if you have multiple loans and balances. 

Another important factor to keep in mind are your payments. Business loans can have daily, weekly or monthly payments, and taking on a payment schedule and amount that you can handle can prevent you from missing payments or defaulting. 

For example, if you determine that your business can handle a $1,000 monthly payment on an 8.5 percent APR loan with a term of five years, then the maximum amount you could borrow would be $48,741.

You can use a loan calculator to see how much you would be paying each month with your potential loan balance and interest rate. 

Monthly payments

$ 96.66

Total principal paid $5,000
Total interest paid $799.84

Make sure you meet requirements

Each lender has its own set of eligibility criteria for small business loans. That said, you’ll want to keep some general guidelines in mind as you research your options and prepare to apply for a business loan. Bankrate has additional resources that can help you prepare.

Most lenders will typically evaluate the following to determine if you’re a good fit for a small business loan:

  • Business revenue: You’ll likely need to generate a certain amount of gross annual or monthly revenue to qualify for a small business loan. Meeting this requirement demonstrates to the lender that you have the means to make monthly loan payments without disrupting your company’s cash flow.
  • Business credit history: Some lenders will check your business credit score when evaluating your loan application. Your business credit history will also show the lender your payment history with vendors and service providers.
  • Personal finances: Most small business lenders will check your personal credit score and history to determine the risk you pose. Some lenders may offer business loans for a credit score of 500 or less, but they may come with high interest and fees. A higher credit score means you’ll have better approval odds and lower interest rates with more lenders.
  • Time in business: Expect to provide the number of months or years you’ve been in business. In most instances, you’ll need at least six months of business to qualify for funding. Some traditional lenders require at least two years of business experience to secure a small business loan. But startup loans exist, too.
  • Industry: Lenders want to know you’re operating in a stable industry or one that isn’t at risk for a major downturn that could significantly affect operations and your ability to repay the loan.
  • Business debts: Prepare to provide a business debt schedule, which lists your current outstanding business debt obligations and monthly payments to the lender. This information will be used to determine how much of your revenue is allocated to current debts and if you can afford to take on a new monthly loan payment.

It’s also helpful to have these documents handy when you apply:

  • Business plan and loan proposal (if applicable)
  • Business license and operating agreement
  • Employer identification number (EIN)
  • Recent personal and business tax returns
  • Recent bank statements
  • Proof of business insurance
  • Payroll records
  • Lease agreement
  • List of accounts payable and accounts receivable
  • Business financial statements (i.e., balance sheet, profit and loss statement)

Business loan requirements

Here’s what you need to know before you apply.

Learn more

Prequalify through Bankrate

When shopping for loans, consider prequalifying with us. Bankrate offers multiple benefits if you decide to prequalify on our site, including:

  • Instant prequalification based on your credit profile
  • Compare multiple lenders at once instead of one lender at a time
  • No hard checks
  • Get expert insights based on unbiased reviews and analyses 
  • Access loan information and applications in one place
  • Build a profile you can access later in the process

How to compare small business loans

There are a huge variety of loans, lending products and lenders to choose from in the business loan sphere. Which one is right for your business will depend on your needs, limits and priorities. Here’s what you should consider.

If your most important deciding factor is… …then you should consider
Interest rate
  • A low-interest LLC loan, which is typically offered by online lenders.
  • An SBA loan, which has a fixed interest rate.
Funding flexibility
  • A business line of credit, which offers revolving cash withdrawal instead of lump sum borrowing.
High amounts
  • A term loan, which offers higher loan limits based on revenue and credit history.
Low amounts
  • A line of credit, which can offer lower and more flexible funding.
  • An SBA microloan, which offers funding under $50,000
Ease of approval
  • A secured LLC loan, which can have more flexible approval terms in exchange for collateral
  • A merchant cash advance or invoice financing, which are based on cash flow instead of credit history.
Speed of approval
  • An LLC loan from an online lender, which can come with approval in minutes.
  • An SBA Express loan, which offers SBA loans with a faster approval process.

Types of small business loans

There are several types of small business loans to choose from. Some have more stringent requirements than others, particularly those offered by traditional banks. But online lenders typically have options available for new businesses and business owners with fair or bad credit.

Here’s a closer look at the different business loan options available.

9 types of business loans

From lines of credit to microloans, find the right lending product for your unique business needs.

Learn more

Types of business lenders

Selecting the right lender for your business loan can set you up for long-term success, especially if you decide to use your lender for multiple loan products in the future. 

When considering a lender, you’ll want to think about the following factors:

Quick definitions

Loan rates and fees.
Some lenders will offer lower interest rates or limited fees.
Loan terms
How much you can borrow, whether the line of credit is revolving and your draw limit will vary depending on the lender. 
Product offerings
Lenders can have a wide variety of loan products, such as traditional loans, business credit cards or business lines of credit. 
Requirements
Different lenders can have stricter or more relaxed borrowing requirements. 
Speed of approval
Some lenders will offer approval in less than 24 hours. 
Customer service
Some lenders can offer features such as personalized loan matching, 24/7 customer service or access to a mobile app. 

While lenders will differ in their offerings and approaches, different types of lenders can offer different pros and cons. 

Lender type Pros Cons
Banks
  • Variety of lending products
  • More personalized service
  • Opportunity to build a relationship with the lender
  • Higher interest rates
  • Business hours can be limited
  • Slower approval times
Credit unions
  • Lower interest rates and fees
  • More personalized service
  • Locally-focused service
  • Business hours and locations can be limited
  • Products may be limited
  • Slower approval times
Online lenders
  • Fast approval
  • 24/7 availability and service
  • Lower interest rates and fees
  • Lacks opportunity for building a relationship
  • May be unavailable in certain states
  • Lending products may be limited
Small Business Administration (SBA) approved lenders
  • Limited interest rates
  • Variety of loan and line of credit options
  • Lower credit requirements
  • LCan be difficult to qualify for
  • Long approval times
  • Stricter business qualifications
Community lenders
  • Fixed interest rates and fees
  • Non-profit focused
  • Offers opportunities for underserved communities
  • Limited funds
  • Competitive to apply for
  • Unique requirements

Bankrate can help you find the right lender by allowing you to compare rates, fees, limits and requirements all in one place. Use our loan calculator to get started and get matched with the best lender for your needs. 

Frequently asked questions about small business loans