Finance Factory Business Financing Review

Written by  Marianne Hayes

Written by  Jill A. Chafin

Edited by  Dawn Daniels

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Updated Feb 25, 2025

Interest range: 0% intro APR to 30% or higher, depending on the financing type and lender match. Merchant cash advances have factor rates of Loan amounts: to , depending on the financing type Our Verdict: connects business owners to a network of lenders and offers a wide variety of financing options. The company is transparent about its eligibility requirements, rates and terms, and customer reviews are generally positive. See Business Loan Offers

Pros and cons of

small business loans review

is an online marketplace that connects business owners to a network of lending partners. Think of them as the intermediary between borrowers and small business loans.

offers a wide range of funding options and provides a direct link to potential lenders. may be especially appealing to young companies that haven’t been in business long and aren’t yet generating steady revenue. Time to funding is also relatively short — some loan funds are available in as little as 48 hours.

But small business owners with less-than-perfect credit may have a hard time qualifying for some funding options, especially startup loans.

Having said that, is refreshingly upfront about their rates, terms, loan amounts, and eligibility requirements — though the rates and terms you qualify for will ultimately depend on which lenders you match with.

small business financing at a glance

Startup funding

offers startup funding through a combination of business credit cards, personal loans and lines of credit. This could unlock anywhere from with no business history, down payment or collateral required. You must, however, have a minimum credit score of or higher.

Fixed interest rates range from 0% intro APR on cards to — though read the fine print carefully if you get a credit card to understand what your interest rate will be when the intro period ends. Fees, which can vary by lender, may apply.

also provides business-directed retirement accounts that allow you to invest retirement assets into a new business venture. You’ll avoid taxes and penalties, but be aware that investing your nest egg is inherently risky.

If you decide to go with , you can receive dedicated customer support and additional small business resources to help your business grow to new levels. If you’re looking for a startup business loan, rather than a personal credit card or line of credit, you may want to look elsewhere.

Business credit cards

] can help new businesses cover essential startup business costs or daily operational expenses up to per lender with funding via a business credit card. Some lenders also offer a short-term 0% introductory rate.

If you pay off the balance before the interest kicks in, you’ll essentially enjoy the benefits of an interest-free business loan. But interest rates and fees can vary greatly depending on the lender and borrower.

Be aware that opening multiple new credit cards can have a negative impact on your credit score. Before applying with , reach out to discuss whether you’re looking for a single credit card or multiple cards to reach a higher total limit.

Franchise loans

A franchise loan from can help startups and well-established businesses expand to new locations, both locally and nationwide. With fixed interest rates starting at and terms lasting up to months, you can access between . Funds can cover a range of expenses, such as working capital, equipment, expansions, real estate and more.

Commercial real estate loans

If you’re looking for a retail location, office or warehouse, can provide up to in commercial real estate loans through its real estate partner, Evergreen Equity Partners. That may include funding for long-term rentals, fix-and-flips, investment properties and owner-occupied loans and refinances — as well as bridge loans and debt-service coverage ratio (DSCR) loans. Fixed rates range from , with a down payment of 20% or more required to secure financing. You can review potential rate and term options with no hard credit checks, upfront fees or obligations.

Equipment financing

Equipment financing can be a valuable option if your business needs capital to purchase essential equipment — whether that’s machinery, tools, hardware, software or office furniture. Eligible borrowers can finance up to , with terms determined by the life expectancy of the equipment that’s being financed. Interest rates vary and can range anywhere from to more than . You’ll need a credit score of at least to qualify.

SBA loans

SBA loans, which are guaranteed by the U.S. Small Business Administration, are ideal for established business owners with strong credit. They’re also known for having lower interest rates. Through , qualified borrowers can tap into , with repayment terms spanning months.

Interest rates for variable SBA loans are capped at (based on the current prime rate of ) depending on your loan size. To be eligible for an SBA loan, you’ll generally need a minimum credit score of .

Merchant cash advances

A merchant cash advance is designed to help small business owners manage short-term expenses, including seasonal slow-downs in revenue. Business owners receive an advance in exchange for a percentage of the business’s future credit and debit card sales.

Instead of offering a regular interest rate, merchant cash advances charge a factor rate. This is a flat fee you pay to borrow the money. To figure out how much you’ll pay, you can multiply your factor rate by the advance amount.

charges a factor rate of and allows business owners to borrow . Terms range from months, and you’ll need a credit score of at least to qualify.

borrower requirements

is quite open about what you’ll need to apply for a business loan. In general, its lending criteria are generally lower compared to many other lenders. For example, you may be able to get a startup loan or real estate loan before opening your doors for business, although your chances of approval will likely improve if you can demonstrate your business’s ability to earn income.

Required documents

Business financing requirements can vary based on the type of financing, the borrower and the partner lender providing the funds. That said, you may be asked to provide the following paperwork when applying for a loan:

Alternatives to

vs.

While offers more funding options, may be the right choice for business owners with poor credit. However, getting approved doesn’t guarantee a low interest rate. Having said that, provides quick funding, sometimes within the same day. But the maximum loan amount is less than what offers. Your business must also have a minimum annual revenue of .

Read our review of

vs.

If you’d rather stick with a more well-known lender that offers physical branch locations, there’s always . It’s the largest bank in the country, after all, and like most big banks, it’s rather tight-lipped about its fees, rates and borrower qualifications. It is also a lender in its own right, so if you check your options with , you’ll only receive financing offers from Chase itself, rather than a network of lenders, like with .

Read our review of Chase