Good online business loans are fast and convenient. However, the best online business loans excel at more than just speed and convenience. When you are looking for an online business loan, you will want to find one that is fast, affordable, and straightforward. You want to know that your lender excels and goes beyond the base standards for online lending.
Many online lenders do not tell their whole story. That’s why we want to put the spotlight on a few lenders that offer straightforward rates and terms. We judged the best online business lenders by speed, terms, and affordability. Also, perhaps most importantly, we looked at how well the loans provide what they advertise.
So, let’s look at the best online business loans for 2020
| Lender | Minimum Revenue | Time in Business | Minimum Credit | Next Steps |
|---|---|---|---|---|
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$50,000/yr | 1 year | 560+ | See if you qualify |
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$100,000/yr | 1 year | 600+ | See if you qualify |
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$25,000/yr | 3 months | 500+ | See if you qualify |
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$42,000/yr | 9 months | 550+ | See if you qualify |
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$75,000/yr | 2 years | 620+ | See if you qualify |
The Best Online Business Loans
Kabbage Line Of Credit
A Kabbage line of credit is a simple and honest business financing option. There are several benefits to a Kabbage line of credit, starting with great speed. You can get approved for a Kabbage line of credit within hours and receive your funds the next day.
Kabbage line of credit expenses are added up in a slightly strange way. However, you can refer to their price calculator on their site, which lays out everything that goes into coming up with their rates. Also, they present you with the full cost of the loan before you take it out.
The minimum requirements for a Kabbage line of credit are somewhat lax. Minimum credit score requirements start at around 560 but they also take your income into account. Depending on your financial information, you can get a line of credit with a draw limit of up to $250,000.
OnDeck Term Loan
An OnDeck term loan is a potentially huge and fast online business loan. With OnDeck, you can get a business loan of up to $500,000 in less than one business day. The company’s speed is one of its strongest benefits, but they are also willing to provide fast loans in many different sizes.
While OnDeck isn’t the most stringent business lender, it does have a few base requirements. First, they will want to see a credit score of at least 600. The other main requirement is an annual revenue of at least $100,000 with no bankruptcies during the last two years. If you meet these two requirements, you will be eligible for a loan of anywhere from $5,000 to $500,000. So, OnDeck is a good online business loan option if you need a very large business loan. Also, repayment terms can range from 3 to 36 months.
Fundbox Term Loan
Fundbox is another fast provider of business term loans. You can get a loan in about one business day, and their minimum requirements are lower than the other lenders we are covering here.
To get a Fundbox loan, you need a credit score of at least 500. You also need at least three months in business, as they’ll want to look at your accounting software or bank statements for the last three months. Apart from those requirements, they just need you to have a minimum annual revenue of $50,000.
Fundbox loans do not require any collateral OR personal guarantees for smaller sized loans. This translates into far less risk than you’d get from other options. For loans of over $50,000, they will ask you for a personal guarantee, but collateral still isn’t necessary.
Loanbuilder Business Loans
Loanbuilder is an especially transparent lending service launched by PayPal. The service offers a Loanbuilder Configurator which allows you to search for a loan without making an account or submitting an application. You just need to use their sliding scales to set your revenue, credit score, and other information to get an instant look at what you’d be offered. So, you always know what to expect if you use Loanbuilder.
You can use the same configurator to set your terms. As you punch in your information, you can find out what terms Loanbuilder would offer you if you sent an application. If you do so, there will be no hidden fees. You just need to pay back one borrowing fee that ranges from 6.49% to 19.31%.
LendingClub Small Business Loan
LendingClub offers small business loans for borrowers with fair or better credit scores. If your credit score is 620 or higher, you can qualify so long as you have:
- $50,000 in annual revenue
- 1 year in business
- No recent bankruptcies or tax liens
The loans the LendingClub provides are fast. They also carry low rates compared to other fast online lenders. Total APRs range between 9.77% and 35.98%. This is in part due to a fairly large origination fee.
There are no prepayment fees with LendingClub. So, you can save money by paying back early when it suits you. If you’re running a smaller business but have a fair credit score, LendingClub’s offer was made with you in mind.
Unsure Of The Best Online Business Loans? Try Main Become or SuperMoney
Regardless of your financial situation, you can take advantage of a lending marketplace to find the best rates for you. Become and SuperMoney match business owners with loans bases on their unique financial situations.
| Lender | Minimum Revenue | Time in Business | Minimum Credit | Next Steps |
|---|---|---|---|---|
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$100K/year | 1 year | 600+ | See if you qualify |
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$10,000/mo | 3 mo. | n/a | See if you qualify |
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$10,000/mo | 3 mo. | n/a | See if you qualify |
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$75,000/yr | 24 mo. | 620+ | Request Intro |
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Varies | Varies | 560+ | See if you qualify |
When you sign up for either one, you are prequalified for all of their partner lenders. Thus, you can get an APR of anywhere from 6% to over 36%. They can even match you with Small Business Administration (SBA) lenders if you qualify. So, no matter what your credit score and income are, you can try using a marketplace lender to get matched with several lenders that would give you a business loan.
