Best small business loans of November 2024

Written by
Allison Martin
Edited by
Rob Watts
Reviewed by
Kenneth Chavis IV
Edited by
Rob Watts
Reviewed by
Kenneth Chavis IV

Updated Oct. 29, 2024

A small business loan can help cover a variety of business-related expenses, including startup costs, working capital or growth opportunities. But securing financing isn’t always easy — you’ll need to identify the right type of small business loan or line of credit for your company and find a lender willing to work with you. Below you will find a list of the best small business loans on the market, details about each offering and an explanation of why they made the cut.

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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

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

BEST FOR LOAN VARIETY

4.2

Bankrate Review
Loan amount
$10k- $500K
Term: 4 - 24 months
Interest rate
Varies
Fastest funding
1 business day
Apply nowArrow Right

on partner site

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

BEST FOR WORKING CAPITAL

4.6

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

Best for startups

4.5

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

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

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

Bankrate 2024 Awards Winner: Best small business loan for good-to-excellent credit

4.2

Bankrate Review
Loan amount
$10k- $150K
Interest rate
Starting at 10.00%
Fastest funding
Not disclosed

Bankrate 2024 Awards Winner: Best CDFI for small business loans

4.2

Bankrate Review
Loan amount
$5k- $250K
Term: 12 - 60 months
Interest rate
8.49- 24.99%
Fastest funding
Not disclosed

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

How we chose 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:

Best small business loans of November 2024: Compare lenders and apply

If you’re on the hunt for a business loan, take a deeper dive into our top picks. The table below offers more details about minimum credit score requirements, loan amounts and time in business for some of the best small business loans.

LENDER BEST FOR MIN. FICO CREDIT SCORE LOAN AMOUNT MIN. TIME IN BUSINESS
Early payoff discounts 660 Up to $500,000 6 months
Short-term loans 660 Up to $500,000 6 months
Flexible repayment terms 660 $25,000 to $500,000 2 years
Startup loan 600 $1,000 to $150,000 6 months
Low revenue requirements Minimum FICO score of at least 660* at the time of application $2,000 to $250,000 Must have started your business at least 12 months ago
Bad credit 500 $5,000 to $10 million 3 months
Working capital 625 $5,000 to $250,000 1 year
The bank experience 700 $10,000 and up 2 years
Small business line of credit 680 $5,000 to $1 million Less than 2 years
Underserved communities Not disclosed $5,000 to $250,000 1 year

Top small business loans at a glance

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 in the table above.

National Funding: Best for early payoff discounts

4.4
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

4.2
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

Funding Circle: Best for flexible repayment terms

4.6
Bankrate Score

Overview

Funding Circle helps small businesses find conventional business loans online. It’s helped 143,000 small businesses receive term loans and lines of credit, usually funding within 48 hours. Unlike other online lenders, Funding Circle offers short and long-term repayment options. The term lengths for their business term loans range from six months to seven years, allowing 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

4.5
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
6 months
Read Bankrate's Expert Review

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

4.3
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. The minimum draw amount is $500 for six-month loan terms if your balance is greater than $500 or $100 if your balance is less than or equal to $500. For 12- and 18-month loan terms, the minimum draw amount is $10,000. 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

4.6
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. As an online lender, Credibly is known for being flexible with its lending requirements, so business owners with a minimum personal credit score of 500 could qualify for funding.

Min. Fico Score
500
Loan Amount
$5,000 to $10 million
Min. time in business
6 months
Read Bankrate's Expert Review

OnDeck: Best for working capital

4.6
Bankrate Score

Overview

OnDeck is an online lender specializing in 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

4.3
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

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 range from a 9.00 percent to 18.25 percent APR, businesses with an unsecured line of credit have access to Wells Fargo's rewards program.

Min. Fico Score
680
Loan Amount
$5,000 to $1 million
Min. time in business
2 years or less, depending on product
Read Bankrate's Expert Review

Accion Opportunity Fund: Best for underserved communities

4.2
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
Not disclosed
Loan Amount
$5,000 to $250,000
Min. time in business
1 year
Read Bankrate's Expert Review

What is a small business loan?

A small business loan is a loan product used by business owners looking to open the doors to their new business, expand operations, acquire inventory or equipment, resolve cash flow issues or use for other business-related needs. These loans are available through traditional banks, credit unions and online lenders.

How a small business loan works

Small business loans typically work like this: the small business owner applies for a specific amount of funding, receives the funding once approved and repays the loan with interest. In order to get approved, the small business must meet the lender’s minimum requirements, like a certain time in business, credit score or annual revenue. Unlike a personal loan, you often have to prove your business is viable by providing business bank account information and other data.

If a lender approves you for a loan, you can negotiate the details and then you'll receive a loan agreement to sign. With some lenders, this process might take a few days; with others, several weeks. Depending on the loan type, you might have a revolving amount you can borrow from repeatedly, or cash may come in one lump sum. 

After receiving the funds, you must start repaying them. You may do that in equal payments over a given term at regular intervals. Monthly payments are common, though anything from daily to quarterly payments is possible. Or you might repay your loan through a percentage of your daily or weekly sales, a model that’s common with merchant cash advances.

Secured vs. unsecured business loans

You also get to choose between a secured or unsecured business loan, depending on whether you have collateral to put up for the loan. A secured business loan uses your business assets as a guarantee that you can repay the loan. Using collateral is beneficial if you need help getting approved for a bad credit loan or if you’re vying for lower interest rates. 

But if you’re short on assets or don’t want to risk backing a loan with them, you could go with an unsecured loan. An unsecured loan lets you borrow funds without putting any collateral behind the money borrowed. Be aware that lenders may require you to have a top-notch credit history or well-built stream of revenue to qualify for an unsecured loan.  

Requirements for small business loans

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.

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: 

Pros and cons of small business loans

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

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 60 months.
  • 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.

Con

  • 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 produce. 
  • Lengthy approval timelines. Some lenders or types of loans take weeks to approve due to rigorous underwriting processes.

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.

Where to get a small business loan

Don’t limit your options — investigate loans from multiple lenders to get the best rates.

Banks and credit unions

Banks and credit unions typically offer a variety of products, from lines of credit to SBA loans. Requirements tend to be strict, often requiring several years in business and strong credit and revenue. Approval can take weeks or months to finalize the loan agreement. However, these institutions can offer a face-to-face experience. And bank employees should be skilled at helping you navigate the application process.

Online lenders and fintech

These lenders often specialize in lending to less established businesses, as requirements are often less stringent. For example, online lenders may only require six months in business. Approval and funding may take only a day or two. An all-online experience means that you can access and manage the loan as needed without having to contact a loan officer. However, you need to be careful that the lender is established and legitimate by reading reviews, checking Better Business Bureau ratings and looking at the lender's background. 

Nonprofits

Some nonprofits specialize in helping small businesses access capital. Some, such as Kiva, operate crowdfunding platforms or run microloan programs. In general, banks and credit unions are best for more established businesses because of the stricter approval requirements. Online lenders and nonprofits may be more forgiving of less established businesses, as some are even geared toward businesses that could not secure funding from more traditional banking options. 

Community Development Financial Institutions (CDFI)

A business loan from a Community Development Financial Institution (CDFI) offers unique advantages. These institutions are dedicated to supporting underserved communities and promoting economic development. Loans often have more flexible underwriting criteria tailored to meet the needs of small businesses that may face challenges accessing traditional financing. 

Minority Depository Institutions (MDI)

Minority Depository Institutions are financial institutions focused on serving minority communities. Like CDFIs, the goal of MDIs is to provide access to capital and financial services and promote economic development in underserved communities. 

SBA lenders

Banks, credit unions and alternative lenders offer term loans backed by the Small Business Administration (SBA). A business can benefit from an SBA loan due to its favorable terms, lower interest rates, longer repayment periods and flexible eligibility criteria. It provides access to capital for various purposes, such as starting a business, expanding operations, purchasing equipment or refinancing debt and supporting business growth and stability.

How to manage a business loan

Getting approved is just the beginning of your business loan journey. Now you need to follow through with repayments which requires effective planning and money management. While you can use different strategies, one important strategy is to stay close to your business budget. Update your spending and projected revenue frequently so you can make tweaks to accommodate loan payments as your income fluctuates. Consider setting up automatic payments so you don’t miss a loan payment by accident. 

And keep in touch with your lender about your loan status. If you don’t think you can make a payment, communicate that as soon as possible so your lender can work with you on a suitable repayment plan. All in all, be committed to adjusting your business or revenue strategy to fit in loan payments and pay off the entire loan. 

Lightbulb Icon

Bankrate insight

If the business loan you’re considering presents the following red flags, consider going with a different option.
 
  • Fees or other points of the contract are not clearly stated or vague
  • Terms to pay back the loan or draw periods are very short
  • You cannot pay off the loan early
  • Borrowing limits are smaller than what you need
  • Lender isn’t forthcoming when answering questions

Small business loan news

The foundation of how small business loans work and what’s offered tend to stay the same. But the economy and government regulations can impact interest rates and loan approvals. Here’s what you need to know about getting a business loan in the current market:

  • SBA seeks to expand small business working capital financing: The SBA is introducing a new 7(a) Working Capital Pilot program designed to help more small businesses access a line of credit. It has tiered interest rates based on the amount borrowed, and like most lines only charges interest when you withdraw funds. This credit line will allow financing for projects, asset-based lending and funding international orders.
  • Small business bankruptcies and rising loan balances: Small businesses have been hit hard by the economy and other factors in the last few years, leading some businesses to file bankruptcy. According to the American Bankruptcy Institute, small business Chapter 11 bankruptcies were up 70 percent in June 2024 compared to the same time the previous year. Businesses are also getting less access to credit as business loan interest rates increase and loan demand decreases. According to the Federal Reserve’s Small Business Lending Survey, in Q1 2024, new lending decreased, and outstanding loan balances increased when compared to 2023.
  • Small Business Saturday: Small Business Saturday is Nov. 30, 2024. Consider supporting your local economy and community by Shopping Small this holiday season.
  • Historically high Fed rates are finally on the way down: The Federal Reserve had been raising lending rates to try to slow inflation. Rates went up in 2022 at a rate not seen since 2001. In 2023, the Fed raised the Federal Funds rate a total of 11 times before changing direction in 2024. In September, the Fed lowered the key federal funds rate to a new target range of 4.75-5 percent. The fed funds rate reflects how much it costs for banks to lend money. It also influences benchmark interest rates like the Wall Street Journal prime rate. Many lenders base their interest rates on the prime rate, so other loan rates will also often increase. That includes business loan rates.

Alternatives to small business loans

Below are some alternative options if you decide a small business loan is not for you:

Frequently asked questions about small business loans