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1 min read April 26, 2024
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What is the Bankrate Score for small business loans?

Bankrate evaluates small business loan lenders using a 22-point scale to measure quality in five key areas: accessibility, affordability, transparency, customer service and flexibility. We use these categories to identify which lenders have notable products and services and which businesses would best benefit. 

Score visualization across Bankrate

Bankrate Scores are visualized differently across our website. These images illustrate different variations you may encounter.

Rating: 5 stars out of 5
5
Bankrate score
Rating: 5 stars out of 5
5
Bankrate score
Rating: 5 stars out of 5
5
Bankrate score
Score Breakdown
  • 4.5 - 5 stars is outstanding
  • 4 - 4.5 stars is excellent
  • 3.5 - 4 stars is good
  • 0 - 3.5 stars is average

How we calculate a Bankrate Score

To help you find the best and most affordable business loan, our editorial team regularly evaluates financial products offered by banks, credit unions, online lenders and other lending institutions. To do this, we look at small business trends along with current market and economic conditions to determine what makes a great small business loan product. 

Once we establish what a competitive business loan product looks like, we analyze lender data in each of the categories defined in our Bankrate Score. To measure overall quality, lenders are rated on a scale from one to five, with five being the highest. 

While Bankrate receives compensation from some of the lenders we review, partnerships do not impact or influence our process. Lender scores are based on data and expert analysis to provide fair and transparent ratings. 

Overall score 

We look at five key areas when scoring a small business loan.

Accessibility score

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.

Breakdown
Minimum loan amount 20%
Maximum loan amount 17%
Fast approval 20%
Fastest funding 20%
Minimum annual revenue 8%
Minimum time in business 8%
Minimum credit score 7%

Percentages do not add up to 100 due to rounding.

Affordability score 

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. 

Breakdown
Minimum rates 19%
Maximum rates 19%
Rate/fee discounts 19%
Fees 42%

Percentages do not add up to 100 due to rounding.

Customer experience

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. 

Breakdown
Online application 38%
Online account access 38%
Customer support 25%

Percentages do not add up to 100 due to rounding.

Bonuses awarded for
  • Mobile availability and rating

Transparency score 

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. 

Breakdown
Soft credit check 25%
Credit reporting 20%
Rates and terms disclosed 55%

Flexibility 

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.

Breakdown
Multiple loan types 35%
Repayment terms 40%
Unique options 25%