The Best Small Business Lenders 2020

The best small business lenders of 2020 will make sure you have the funding you need at an affordable rate. They’re also straightforward with what they offer and are easy to work with.

So, to look at the best small business lenders, let’s first go over the most useful lenders on the market. Then, we’ll have a look at some of the small business lending marketplaces that can help you stay on top of some the best deals available.

The Best Small Business Lenders

The best small business lenders are not the lenders that are best for every business owner. Instead, they are just the best business lenders for their intended purpose. Some business lenders are best suited for bad credit borrowers. Others are better for lines of credit that offer more freedom. So, we will make a point of highlighting what makes these lenders the best small business lenders going into 2020.

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Best Small Business Lenders 2020: Direct Lenders

Direct business lenders are lenders that provide business loans to you directly. They will lend you money and collect repayments from you without the help of a middleman.

Fundbox for Invoice-Dependent Businesses

Fundbox is a good option for invoice-dependent business with bad credit. But it’s also a decent option for borrowers with fair credit who need a fast business loan. The only issue with Fundbox is that it becomes less useful if your business is very large.

Fundbox specializes in providing installation loans and lines of credit backed by invoices to small businesses. Their line of credit is simply called “Fundbox Credit”. The main feature they offer is fast lines of credit with no strings attached. Their lines of credit can have draw limits of up to $100,000. Their term length can be anywhere from 3-6 months. So, Fundbox Credit is a good, fast option for immediate or short-term expenses.

There are no minimum balances with Fundbox Credit. Also, you don’t need to pay for the line of credit until you draw funds.

Fundbox also offers several other borrowing options, such as term loans and merchant cash advances. These options come with lower borrower requirements. The minimum credit score for a Fundbox business loan is just 500.

The Best Revenue Based Lenders of 2020

Main Street Financial Group

Main Street Financial Group hosts a wide range of business loans. This is one of the reasons that they are one of the best small business marketplaces.

If you have a high credit score and stable income, you can access Main Street Financial Group partner’s Small Business Administration (SBA) loans. SBA loans can be found through banks and some online lenders. Main Street Financial Group offers them through their partner lenders. So, you can conveniently get an SBA loan on their platform after comparing multiple options.

Loans that are approved by the SBA have good and fair terms. So, if you can access an SBA loan, it is best to take one instead of a typical business term loan. SBA loans have interest rates that cap off at about 7%. They also have long terms that can go on as long as 25 years. Loan sums range from $250,000 to over $5 million.

If you don’t have a great credit score and/or a stable income, you can often still get small business loans with Main Street Financial Group. Their platform offers merchant cash advances and unsecured term loans to borrowers with low credit scores. If you make more than $10,000 per month in revenue and have been in business for over a year, you can qualify for a loan on their platform.

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Best Small Business Lenders 2020: Loan Marketplaces

LendingClub

LendingClub is a peer-to-peer lending option that is open to borrowers with a credit score of 600 or more. Also, you need to have a credit history going back at least three years and a debt-to-income ratio of under 40%. The platform does charge some fees, but they offer decent APRs that are tailored to your credit score.

When you sign up for LendingClub, you are pre-qualified for the loans available to you. So, when you search for a loan, LendingClub will match you with several lenders that you can choose to borrow from.

LendingClub is one of the best small business lenders for business owners with strong financial histories. It might not be a good option for you if you have bad credit or a short credit history. The average borrower from LendingClub has a credit history of 17 years and an annual income of almost $80,000.

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