Best Small Business Loans in April 2026
iBusiness Funding is the best small business loan lender. It offers long loan terms and affordable rates for well-qualified borrowers.
- Winner: Based on our methodology, iBusiness Funding is our top pick for a small business loan lender in 2026. It offers large loan amounts, long repayment windows and affordable rates for well-qualified borrowers.
- Small business loans can be used for a variety of purposes, including covering ongoing expenses, buying inventory or equipment, purchasing real estate or funding your next startup idea.
- Lenders typically look at three metrics when qualifying you for a loan: your personal or business credit score, your time in business and your annual revenue.
- If you don’t qualify for a small business loan through traditional sources, there are plenty of alternative options, such as SBA loans, merchant cash advances or small business grants.
Best small business loan lenders
| Lender | Starting rate | Amount | Term | |
|---|---|---|---|---|
|
22.45% (suffix) |
$25k – $500k |
6 to 60 months | |
|
4.66% (suffix) |
$1k – $1.5M |
Not specified | |
|
13.00% |
$5M – $1.5B |
4 to 18 months | |
|
6.95% (suffix) |
$5k – $250k |
18 to 24 months |
| Lender |
|
|
|
|
|---|---|---|---|---|
| Starting rate | 22.45% (suffix) | 4.66% (suffix) | 13.00% | 6.95% (suffix) |
| Amount | $25k – $500k | $1k – $1.5M | $5M – $1.5B | $5k – $250k |
| Term | 6 to 60 months | Not specified | 4 to 18 months | 18 to 24 months |
Learn more about how we chose our picks.
What is the best small business lender right now?
Following our methodology, we rated iBusiness Funding as the best small business lender because of its higher borrowing limits, affordable interest rates and long repayment windows.
However, other lenders deserving honorable mention include: for its competitive rates, lenient eligibility criteria and supplemental business education opportunities, as well as Fundbox for its low rates and flexible qualifying standards.
As LendingTree’s small business loan experts, we handpick each of our top lenders and evaluate them on the factors that matter most to business owners like you — interest rates and fees, qualification standards and flexible repayment options. Learn more about how we made our selections.
LendingTree’s concierge team makes getting a business loan easier
When your business needs financing, LendingTree’s small business concierge service offers personalized guidance to help you secure the funding that best suits your needs.
There are just four easy steps to get started:
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Fill out our interest form
Share some initial information about your business and how much you’re looking to borrow. The form takes just two minutes to complete, after which you’ll be paired up with an experienced account executive who will help guide you through the lending process. -
Take an introductory call
Your account executive will contact you to learn more about your business’s unique funding needs, plus give you more information about the different products and services available from LendingTree’s robust network of partner lenders. -
Receive personalized lending guidance
Based on your application and the information shared during the call, your account executive will make personalized recommendations on the best funding options for you, making sure to keep in mind the metrics that matter most to you as the business owner. -
Follow through the closing process
If you decide to move forward with a recommendation, the same account executive will stay with you throughout the entire lending process, from application to loan closing.
Using this individualized approach, LendingTree’s SMB concierge service has connected more than 5,000 borrowers with over $300 million of loans in the past year.
“LendingTree’s small business concierge service makes it straightforward and easy to compare the best funding options. Our consultative approach provides a comprehensive review of the different options across our entire lender network, allowing business owners to make informed lending decisions.”
Ben Whitman, Business Loan Sales Director at LendingTree
Best small business loan companies
Best for: Financing large purchases – iBusiness Funding
- Starting rate (suffix)
- 22.45%
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- Lengthy terms give borrowers up to five years to repay their debt
- Lower rates than many alternative lenders
- No application fees or prepayment penalties
- Collateral, personal guarantee and/or blanket lien may be required
- Must be in business for at least two years to qualify
- May take a few days or more to fund
If you need to finance large purchases outside of equipment, like inventory or upfront capital to expand your business, iBusiness Funding might be your best option, with lengthy terms giving you up to 60 months to repay your debt.
While longer loan terms can increase the amount of interest you’re required to pay over time, it’s worth noting that iBusiness Funding offers lower interest rates than many alternative lenders, making this a relatively affordable option, especially for borrowers with good credit.
However, you’ll need at least two years in business to qualify, meaning this is more suited to an established business looking for an expansion loan, not a startup. And unlike some of the other options on this list, it typically takes two to four business days to receive your funds.
Read our full iBusiness Funding review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
- Minimum credit score: 640
- Minimum time in business: 24 months
- Minimum annual revenue:
Best for: Startup companies – Fundbox
- Starting rate
- 4.66%
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- Low time in business and annual revenue requirements
- No prepayment penalties
- Relatively fast funding (typically 2 business days)
- May require a personal guarantee
- Short repayment terms with weekly payments required
- Shorter repayment window
With the lowest time in business and annual revenue requirements on this list, Fundbox is our pick for the best startup business loans. Your business only needs to be in operation for 3 months to qualify for a business line of credit up to $1,500,000. Once approved, you can borrow funds as needed to pay for a wide range of business expenses, only paying interest on what you actually withdraw.
However, Fundbox may require a personal guarantee to secure your funds, which puts your personal assets at risk should you fall behind on your loan payments. With short repayment terms, this means small business owners will need to make sure they’re prepared to make the required weekly payments before making withdrawals.
Read our full Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
- Minimum credit score: 600
- Minimum time in business: 3 months
- Minimum annual revenue:
Best for: covering short-term cash flow gaps – Fora Financial
- Starting rate
- 13.00%
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- Low credit score and time in business requirements
- Prepayment discounts available
- Relatively fast funding — as quickly as within 24 hours
- High annual revenue requirement
- Factor rate makes it difficult to compare loan costs with other lenders
- High loan amounts and short repayment terms could lead to a dangerous debt cycle if borrowers aren’t prepared to repay their loan
If you’re looking for financing to cover short-term gaps in cash flow, look no further than Fora Financial, which offers business loans up to $1,500,000,000. This is a significant amount of cash, which should provide more than enough funds to stock up on inventory, survive a slow season or take advantage of a limited-time growth opportunity.
However, with shorter repayment terms than most of the lenders on this list, this option is best suited for business owners who expect their cash flow to increase in the coming months. Otherwise, high loan amounts could leave borrowers with overwhelming debt payments.
Read our full Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
- Minimum credit score:
- Minimum time in business:
- Minimum annual revenue:
Best for: Same-day funding – OnDeck
- Starting rate (suffix)
- 6.95%
Not so specific
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- Same-day funding available
- Fair to low credit accepted
- Can help build business credit
- Requires daily or weekly payments
- High interest rates
- Funding not available in North Dakota
If you need fast funds, OnDeck is one of your best options. The lender’s online application only takes a few minutes to complete, and, if approved, borrowers can receive their funds as soon as the same business day. On-time payments can also help you build your business credit, which may make it easier to qualify for other types of financing down the road.
Like other alternative lenders, OnDeck requires daily or weekly loan payments, which borrowers will need to be prepared to pay to keep their loan in good standing. And the lender charges a relatively high APR, which means that getting your funding quickly could cost you more in the long run.
Read our full OnDeck review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score:
- Minimum time in business: 12 months
- Minimum annual revenue:
What is a small business loan?
Small business loans help new and established companies access capital for various business needs. With business financing, you can purchase inventory, invest in new equipment, expand or cover emergency expenses.
Traditional banks, credit unions, online lenders and government agencies all offer small business loans.
The best business loan for your company depends on how much you need, your business’s qualifications and how quickly you need the funds.
Types of small business loans
Loans for small businesses come in a variety of flavors, with terms as short as a few months or as long as 25 years. Here are some common types of business loans to consider:
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Business term loans
Term loans deliver money in a lump sum and offer fixed payments on both the principal and interest. -
Business lines of credit
Business lines of credit allow you to borrow repeatedly up to a set limit, only charging you interest on what you’ve borrowed. -
Equipment financing
Equipment financing can be used to buy equipment and machinery for your business. The equipment itself secures the loan, making it easier to qualify for than other loans. -
Commercial loans
Commercial loans can be used to buy equipment or property for a business. They’re like mortgages, except they often require a higher down payment. -
SBA loans
SBA loans are guaranteed by the U.S. Small Business Administration (SBA), offering long repayment terms with capped interest rates. -
Microloans
Microloans are loans for or less. They are often geared toward business owners who run startups. -
Working capital loans
Working capital loans and working capital lines of credit are umbrella terms for financing that covers short-term operating expenses, like payroll or cash flow gaps.
Business loan requirements
When you apply for a business loan, lenders want to know that your business and credit history are stable. Here are some common business loan requirements you may need to meet to get approved for small business funding:
Time in business
In general, your business will be in a stronger position to borrow if you can prove you have a track record of solid revenue over the past one to two years.
Credit score
Lenders use your credit score to determine your riskiness as a borrower. In most cases, you’ll need a good to excellent credit score in the mid-600s or higher to get a business loan, although certain lenders allow scores as low as 500. Some lenders may also consider your business credit score when reviewing your loan application.
Cash flow
A business cash-flow projection shows when money is collected, when cash goes out and what’s left. Lenders typically like to see that you understand where your business’s money is going each month. If you use accounting software, you may be able to export this report from your dashboard.
Collateral
Collateral is an asset that lenders can legally seize if you can’t make payments. Common forms of collateral include real estate, equipment, money owed to your company (accounts receivable) and even cash. Some business owners use their personal assets — including their homes — as collateral on a business loan, which can be risky.
Fixed charge coverage ratio
Your business’s fixed-charge coverage ratio measures how well your company can pay its fixed expenses, including any debts and interest you have. Lenders use this metric to help determine whether or not to approve a business loan application.
Working capital
Your working capital refers to the available money you have to fund your company’s day-to-day operations. You can calculate your working capital by subtracting the business’s debt liabilities due within a year from current assets that you can convert to cash.
Applying for a small business loan involves gathering necessary documents for your loan application. The exact paperwork differs across business funding partners, but here are some documents you might need to provide:
- Business plan
- Two-plus years of personal and business tax returns
- Recent profit-and-loss statement
- Past bank statements
- Recent balance sheet
- Legal filings related to ownership
- Information on existing debts
- Business licenses and permits (if applicable)
- Information on collateral (if required)
- A certificate of good standing
What to consider before getting a business loan
The process to get a business loan depends on the lender and the type of funding you need. Answering the following questions can help narrow down the best small business lending option for your short- and long-term needs.
Why do you need the funds?
Are you looking to buy a vehicle for your new food truck business? Are you looking for commercial real estate so you can expand to a second location across town? Or maybe you need some quick cash to fill in the gaps during the off-season. You’ll typically need to have a plan for the funds before applying, and you’ll want to work with a lender that offers loans that align with your needs.
What you can afford?
Look at your business budget to decide what you can afford. Some business loans are repaid monthly over long periods, while others require weekly or even daily repayment. If the amount you need doesn’t align with what you can afford to repay, you’ll need to re-evaluate your plans.
How can you get the best rates?
Before you decide to apply, take the extra time to shop around. Compare offers to get the best rates. This extra bit of legwork may reduce your interest or fees in the long run. Read small business lender reviews to ensure you are working with a reputable lender.
How tariffs are affecting small business loans
Are tariffs affecting loan rates?
Not really. Small business lenders typically use the current federal funds and prime rate when setting interest rates. The prime rate dropped to 6.75% in December, which means loan rates are actually trending down slightly.
It’s impossible to predict if rates will go up, but generally the federal funds rate and prime rate will rise when employment or inflation is too high and go down when they’re too low.
Can I use a loan to help cover tariffs?
Yes, many lenders offer small business loans and lines of credit that can be used to cover working capital and inventory costs, including increased costs caused by tariffs.
But while these can be a great short-term measure, loan repayments generally start quickly, which means you’ll need enough revenue to cover the monthly cost of the loan. If tariffs are increasing your overhead costs, you may need to raise prices or re-evaluate your strategy to compensate in the longer term.
How to compare small business loans
In order to pick the best business loan, compare:
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Interest rate
Is the business loan interest rate variable or fixed? If the lender charges a factor rate, it’s worth converting it to better compare against other offers. Also calculate how much in interest charges you’ll pay over the life of the loan. -
Repayment term
When do payments start? Do you prefer daily, weekly or monthly payments? Is there any option to delay or pause payments during times of financial hardship? -
Time to fund
How long does the application process take? Traditional bank and SBA loans can take two weeks to three months to approve and fund, while online lenders can typically deliver funds within one to three business days. Keep in mind that the quickest business loans aren’t always the most affordable. -
Additional fees
Make sure to check the fine print for extra fees, such as origination fees, late charges and business loan prepayment penalties.
After approval, the closing process involves reviewing documentation that will determine the terms of your selected loan. A business loan agreement is a legally binding contract that dictates your interest rate and repayment schedule.
Ensure you thoroughly understand what the lender is asking of you and what the terms mean for your business’s financial future. After you sign, you’ve agreed to everything in the contract — including what happens when you make late payments or can’t repay the debt.
Additional business funding options
In addition to traditional business financing, here are some other ways to fund your company.
Merchant cash advance
A merchant cash advance (MCA) gives you a lump sum of cash upfront against your future sales. You repay the merchant cash advance through a percentage of daily or weekly credit card sales.
While this type of funding can deliver cash fast, it tends to be a more costly way to borrow money for your company.
Invoice factoring
Invoice factoring allows businesses to sell unpaid invoices to a factoring company in exchange for a cash advance.
This can be a good option for cash-strapped businesses or those with poor or limited credit, but you can typically get only 70% to 90% of your invoice face value.
Invoice factoring can also get expensive — if you’re using factoring on all of your invoices, you’ll typically be giving a cut of everything you make to a lender.
Business credit cards
Business credit cards can help track business expenses and unlock cash back or travel rewards while monitoring employee spending.
To avoid paying a high annual percentage rate, pay off your credit card statement balance in full by the due date.
Small business grants
Federal government agencies, state governments, private corporations and foundations offer grants for small businesses.
You can narrow your search based on business type, location and demographics, such as minority business grants and business grants for women.
Because grants provide free money that typically doesn’t need to be repaid, competition can be stiff.
Crowdfunding
Business crowdfunding is when you ask family, friends and the general public for donations to kickstart your business.
This method can help you test out a business idea and generally appeals to startups or businesses struggling to get funding.
Just be aware that some crowdfunding platforms deduct a fee before distributing your total donations.
Peer-to-peer lending
Peer-to-peer lending, or P2P lending, is a type of financing where individual and commercial investors provide the loan funds rather than a financial institution.
A P2P online platform acts as the coordinator between you and the investors, helping process and finalize your loan details.
While P2P loans typically have more lenient qualifying requirements, they can take longer to fund than other types of financing. Additionally, P2P lending might not be available in your state.
Personal loans
Personal loans for business may be easier to get if you struggle to meet the strict eligibility criteria for a business loan.
However, this type of financing relies on your personal credit and income, putting your personal credit and assets at risk.
And personal loans won’t help you build business credit
Bootstrapping
Bootstrap financing is when you use your own financial resources to fund your business.
Startup businesses may use bootstrapping to get off the ground, but you risk not recouping your investment if your business fails to thrive.
Frequently asked questions
Every lender has their own set of qualifying criteria, but in general, they look at the following when making their decision:
- Business and personal credit score
- Time in business
- Annual revenue and overall cash flow
- Financial statements and/or business tax returns
- Collateral (for secured business loans)
The amount you can borrow and the total loan cost will vary depending on a few factors, including loan amount, interest rate or APR, fees and repayment term.
After determining how much money you need, the best way to find out how much you can borrow is by gathering quotes from multiple lenders and comparing them. You can also use a business loan calculator to get a sense of how much your financing could cost.
Your approval and funding times will vary by lender, but here’s a general guideline to give you a better idea of what to expect:
- Online lenders: Same-day to a few business days
- Banks and credit unions: One to three weeks
- SBA loans: Two weeks to three months
Methodology: How we chose the best business loans
We considered more than 30 leading small business lenders to determine the overall best 13 small business loans. To make our list, lenders had to meet the following criteria:
- Eligibility requirements: To include financing options for businesses at different stages of life, we included lenders with a wide range of credit score, time in business and annual revenue requirements, focusing on the best lenders for specific situations.
- Rates and terms: We prioritized lenders with competitive rates, fewer fees and flexible repayment terms.
- Time to funding: We know there are times when businesses can’t afford to wait for financing, so we prioritized lenders with funding times within one to three days, noting instances where funding timelines may be longer.
- Repayment experience: We consider each lender’s reputation and business practices, favoring lenders that report to all major credit bureaus, offer reliable customer service and provide unique perks, like rate discounts and business coaching.