Best LLC loans in July 2024

Funding Circle is best for building business credit because it accepts fair credit scores of 660 or higher and 630 for SBA loans. Its credit requirement for SBA loans is one of the lowest requirements on the market. You can also benefit from its lack of fees and prepayment penalties for term loans and its long repayment terms, helping you build credit at a low cost.

• Founded in 2010
• Online application
• 90% customer satisfaction
• SBA loans
• Minimal fees

Bluevine is best for its LLC line of credit because of several competitive features. You won’t be charged origination fees for opening the credit line, and there are no prepayment penalties for paying off your loan early.

Online lenders also offer the benefits of fast approvals and lenient credit requirements, and Bluevine is no exception. You can qualify for a line of credit with a personal credit score as low as 625, provided you choose the six-month repayment term. Once approved, funding can land in your account within one business day. Its 12-month repayment term does require a 700 FICO score, three years in business and annual revenue of $960,000.

• Founded in 2013
• Available in 47 states
• Online application
• Funding within 1 day
• No origination fees
• No prepayment penalties
• Accepts fair credit

SMB Compass is best for large term loans because you can get funding up to $5 million. Most companies would need to go with an SBA loan or work with a traditional bank to get funding at that maximum. SMB Compass term loans also come with flexible repayment terms from two to 25 years, while many online lenders stop at 24 months or less. These long terms help to make the monthly payment on a large loan more manageable.

To qualify for a term loan, you need a personal credit score of 680 or higher and an annual revenue of at least $500,000. SMB Compass will accept six months in business for this loan.

• Founded in 2017
• Online application
• Funds up to $5 million
• Up to 25-year terms

While some lenders charge a penalty for paying off your loan early, National Funding rewards you by lowering the cost of the loan. For working capital loans, you get a 7 percent discount on the remaining amount you owe if you repay within the first 100 days. For equipment loans, you get a 6 percent early repayment discount. 

This discount is helpful since National Funding charges factor rates for its short-term loans, a fee that gets applied up front on the initial loan. The early payoff discount helps to offset the cost of the factor rate if you know you can repay the loan quickly.

• Established in 1999
• Inc. 5000 honoree
• Online application
• Early payoff discount
• Lowest payment guarantee on equipment leases

Triton Capital works best for equipment loans because its loans offer decent loan amounts up to $500,000, low interest rates and flexible repayment terms. While most equipment loans stick with monthly repayments, Triton Capital lets you choose between monthly, quarterly, semi-annual or seasonal payments. It also offers long preapprovals, allowing you to take up to 90 days to sign the loan agreement while you look for the right equipment. During that time, it will lock in the interest rate offered to you.

• Founded in 2008
• Online application
• 90-day preapprovals
• Interest rate lock
• 4 payment schedule options

Taycor Financial is best for unsecured business loans because it offers unsecured loan products that are accessible and flexible to borrowers. You can get short terms for quick infusions of cash, as short as two months, and loan amounts start at $500 and go up to $5 million. Plus, all its loan products cater to startups and business owners with poor credit. Like most loans, you will need to sign a personal guarantee when getting a loan here.

• Established in 1997
• Online application
• Accessible requirements

OnDeck is best for short-term LLC loans since its short-term loans are accessible to borrowers with fair credit with the potential to qualify for a prepayment benefit. If you pay off the loan early, you may be eligible to have the remaining interest on your loan waived. You could also qualify to renew your business loan with a reduced or waived origination fee if your account is in good standing. This allows you to stretch out business loan payments, making the payments manageable. 

OnDeck’s terms loans offer loans up to $250,000 with 24-month terms, while its line of credit offers up to $100,000 and 12-, 18- or 24-month terms.

• Established in 2006
• Serves 49 states
• Online application
• Same-day funding
• Early repayment discount
• Loan refinancing

Bank of America is best for LLC bank loans because of the sheer number of options it provides and the ability to access the bank nearly anywhere in the U.S. While most banks need strong revenue and time in business to qualify, you can establish your relationship with Bank of America through its cash-secured line of credit. To do so, you’ll need six months in business, $50,000 in annual revenue and a $1,000 security deposit. Then, when your business grows and you need a loan in the future, you can access Bank of America’s full array of business loan options.

• Founded in 1948
• Available in 50 states
• In-person support
• Rate discounts for preferred members

Live Oak is best for SBA loans because of its SBA Preferred Lender status and because it’s a top-performer in processing SBA loans. Live Oak was the top lender of SBA 7(a) loans by dollar amount in fiscal year 2023, showing significant experience with SBA financing. 

Live Oak is also one of the few fintech lenders in the SBA Preferred Lender Program. This status means it can streamline the SBA loan process, approving loans three to four weeks faster than the usual timelines. SBA loan approvals typically take 30 to 90 days.

• Founded in 2008
• Available in 50 states
• Fast SBA loans
• Top SBA preferred lender

A term loan is a lump sum that is borrowed and repaid over a specified period. For business loans, this window may be anywhere from a few months to 10 years.

A business line of credit is a fixed amount of money your lender allows you to borrow. Like credit cards, lines of credit are a type of revolving credit. You can borrow up to your limit and repay over time. Line of credit rates can be high, especially if you have bad credit.

SBA loans are partially guaranteed by the U.S. Small Business Administration and have generous loan amounts and favorable interest rates. Depending on the loan type, maximum funds can range from $50,000 all the way to $5 million. SBA loans can be slow to fund and hard to qualify for, but in the event of default, the SBA will repay your lender the portion of the loan it guaranteed.  

• SBA 7(a) loan: Its most popular loan program for general purposes like working capital
• SBA 504 loan: Financing for new construction or renovation projects or buying equipment or real estate
• SBA microloans: Small loans up to $50,000 offered through approved microlenders, often nonprofits serving disadvantaged communities 
• Express loans: A 7(a) loan with express approvals offering loans up to $500,000
• Economic Injury Disaster Loans: Provides cash to cover operating expenses that a business can’t cover because a government-declared disaster caused business interruption
• CAPLines: Lines of credit used to cover expenses for specific work contracts or during down seasons

Equipment loans work well for LLCs looking to boost productivity or offer a new product or service. These loans provide financing for one or more pieces of equipment over a term of several years. They may offer lower interest rates than standard term loans, typically ranging from 5 percent to 35 percent APR. Lenders can offer lower rates or approve businesses with less experience or credit history because the collateral offsets risks for lending to these businesses.

Invoice factoring is a type of borrowing that allows businesses to float expenses while awaiting payment of invoices. This is a short-term solution for small businesses with inconsistent cash flow.

You sell your unpaid invoices to the factoring company for between 70 percent and 90 percent of your invoiced amount. Then, the company collects those invoices and pays you the remainder, deducting a percentage as a fee.

Invoice financing offers a lending solution based more on the security of invoices for services or products your LLC has already delivered. It doesn’t weigh your business’s past credit history and financial outlook as heavily as standard business loans. It comes in the form of a financed loan or factoring. But this type of business funding charges fees based on the outstanding invoice amount, and fees may go up the longer your clients don’t pay. 

Merchant cash advances are a form of short-term alternative financing. You receive a loan based on past credit and debit card sales and make daily or weekly payments based on future sales. 

Since they’re not technically a loan, usury laws don’t apply, which means there are no limits on how much interest you can get charged. That’s why it’s possible to find yourself paying high interest rates, from 30 percent to 99 percent and up, with MCAs.

You may also want to look into:

• Loans for underserved communities. Some specialized lenders are on a mission to provide capital to underserved small businesses that don’t traditionally qualify for loans. These lenders include community development financial institutions (CDFIs), which are certified by the CDFI Fund. CDFIs aim to develop the community and offer loans and educational resources promoting long-term success. Another lender that serves underserved markets are minority depository institutions (MDIs). MDIs serve minority businesses with loans, language services and education. They must be majority-owned by minority individuals and have a board comprised mostly of minority individuals.
• Peer-to-peer lending. If you struggle to get approved for loans from traditional and online lenders, you may want to try an online peer-to-peer lending platform that helps connect you with individual investors. The loan works similarly to a standard business loan, setting repayment terms, fees and interest rates. But you get approved by individuals rather than a financial institution.

Yes, a number of LLC loans are partially guaranteed by the U.S. Small Business Administration (SBA). While the SBA does not lend money to businesses, it does back loan products in cooperation with lending partners.

Factor rates are expressed as a decimal rather than a percentage, as interest rates are. Multiplying the borrowed amount by the factor rate will show you the total cost to borrow, including fees.

LLC loans are small business loans that welcome LLCs to apply. Most business loans don’t restrict LLCs from getting a loan. But your LLC will have to meet the lending criteria for the business loan, which can include revenue and time in business requirements. If you don’t meet the standard criteria, you may have to shop around with other lenders to qualify for a business loan.

Yes, LLCs can use personal loans to fund purchases or business expansion. But you can’t treat the loan as free money — you’ll need to document it as debt with terms that the business must repay. You’ll want to consult your tax adviser to make sure you document correctly since documentation can depend on the type of LLC you have. For example, you may need all LLC members to agree to the funding.

Access to small business funding is a challenge for many business owners. Rate hikes and bank turmoil have led to lenders tightening credit standards and eligibility requirements. This can make it difficult for startups, bad-credit borrowers and business owners in underserved areas to get approved for small business loans. 

Our experts consider several factors in this category and award higher scores to lenders that offer flexible loan amounts, fast approval and funding and inclusive time in business and annual revenue requirements.

The affordability of a business loan often depends on a business owner's financial profile. A business with high revenue and a flexible budget will likely be able to afford most loan options. Businesses considered high risk, such as startups or those with bad credit, may struggle to find loans with affordable interest rates and reasonable fees. 

We consider a business loan affordable if the payments are manageable, you have the lowest possible rate based on your creditworthiness and there are minimal fees. Lenders that have lower rates, offer rate or fee discounts and have minimal fees receive higher scores. 

A good customer experience requires a lender to be transparent, efficient and responsive. Reputable lenders that value their customers are easy to communicate with, responsive to your questions and concerns and willing to go the extra mile to make sure you have a positive experience for the life of the loan.

Lenders offering online accounts and applications and a range of customer support availability score higher in this category. 

While the Truth in Lending Act (TILA) protects consumers against unfair or harmful lending practices, it doesn’t apply to business loans. This can make it harder to get straightforward and upfront information on loan costs when comparison shopping. We score lenders that make it easy to find rates and fees, as well as eligibility and credit score requirements, higher than those who do not disclose information.

Loan flexibility is finding a loan to meet your needs, even if you don’t have high annual revenue, several years in business or the best credit score. Loan flexibility can look like lenders that offer multiple lending products, variety in loan terms or unique options to give business owners the opportunity to fund their businesses in a way that works for them.

Lenders scoring high in this category offer varied products and services to cater to all types of borrowers and businesses.