Best Small Business Loans in December 2025
Last year, LendingTree funded $510 million in business loans
| Lender | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|
|
22.45% (suffix) |
$25k – $500k |
6 – 60 months | 24 months | |
|
4.66% (suffix) |
$1k – $1.5M |
Not specified | 3 months | |
|
13.00% |
$5M – $1.5B |
4 – 18 months | Not specified | |
|
31.30% (suffix) |
$5k – $250k |
18 – 24 months | 12 months |
| Lender |
|
|
|
|
|---|---|---|---|---|
| Starting rate | 22.45% (suffix) | 4.66% (suffix) | 13.00% | 31.30% (suffix) |
| Amount | $25k – $500k | $1k – $1.5M | $5M – $1.5B | $5k – $250k |
| Term | 6 – 60 months | Not specified | 4 – 18 months | 18 – 24 months |
| Time in business | 24 months | 3 months | Not specified | 12 months |
Best small business loans: More details
Best for: Financing large purchases – iBusiness Funding
- Starting rate
- 22.45%
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- Lengthy terms give borrowers up to seven 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 24 months to qualify
- May take a few days 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 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 24 months in business to qualify, meaning this is more suited to an established business looking for an expansion loan, and not a startup. And unlike some of the other options on this list, it may take as long as four business days to receive your funds.
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
- May require a personal guarantee
- Short repayment terms with weekly payments required
- Low maximum borrowing amount compared to other lenders
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.
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
- 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.
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
- 31.30%
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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. It’s also important to note that OnDeck does not disclose its starting interest rates, so you’ll need to apply to understand your potential loan costs.
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, build an expansion 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.
How getting a business loan through LendingTree works
LendingTree’s wide network includes over 30 individual business lenders — with one simple online form, we can identify multiple lenders that might be a match for your business.
In some cases, lenders that match your criteria (and vice versa) may contact you directly to discuss your options. You could also qualify for our concierge experience — it’s a fee-free, personalized service in which our team uses the information you provide to compare multiple loan offers for you and recommend the best option for your needs.
With LendingTree’s concierge service, you’ll have a single, dedicated point of contact throughout the entire process. They can answer any questions you have about lender-specific policies, incentives and other items in your loan documents to make sure you have the information you need to sign with confidence.
To qualify for concierge services, businesses typically need a minimum annual revenue of $100,000 or more. But there’s no minimum revenue requirement to be matched with lenders and get quotes through LendingTree.
And whether you use the concierge service or get quotes and speak to multiple lenders directly, using LendingTree to compare your options doesn’t obligate you to get any loan that’s offered.
Applying for a business loan through your bank
When looking for funding for your small business, it’s worth seeing what your current bank has to offer. Having an established relationship with a bank or credit union can often increase the likelihood of getting your business loan approved, especially if you have maintained good standing with another type of financing with them.
One benefit to sticking with your current bank is that you can access all of your accounts, like your bank account and loans, with one login, making it easier to stay on top of payments and track your finances.
Start by getting a quote with estimated interest rates, terms and fees. Some banks and credit unions might run a hard credit check. But don’t worry, you generally have around 14 to 45 days to get quotes from additional lenders without any further impact to your credit score — multiple credit checks for the same type of financing are generally counted as one inquiry so you can rate shop. This means you can get a quote from your bank and from a variety of online lenders to compare interest rates and see if sticking with your bank is the best option.
Banks that offer small business loans
Banks that offer business loans include:
- Capital One
- American Express
offers additional perks for business customers, such as business loan rate discounts, free business credit score monitoring and tips on cash flow strategies. And if you have an active American Express credit card, you can log into your account to see if you’re eligible for an American Express Business Line of Credit pre-approval offer.
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:
Types of small business funding
| Loan Type | Definition | Minimum Credit Score | Funding Time |
|---|---|---|---|
| Business term loans | Term loans deliver money in a lump sum and offer fixed payments on both the principal and interest. | 500 | Same day to 3 months |
| 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. | 600 | Same day to 14 business days |
| 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. | 550 | Same day to 2 months |
| 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. | 650 | Same day to 3 months |
| SBA loans | SBA loans are guaranteed by the U.S. Small Business Administration (SBA), offering long repayment terms with capped interest rates. | 680 (recommended) | 2 weeks to 3 months |
| Microloans | Microloans are loans for or less. They are often geared toward business owners who run startups and minority entrepreneurs. | 300 | Same day to 2 months |
| 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. | 570 | Same day to 2 months |
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. This is more attractive to a lender than a company with spotty revenue over the past six months.
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. Your business credit score should be at least 80, although some lenders may rely on just your personal 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.
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.
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 rounding up 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.
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. Business loans are debts
you must repay, so make sure your business can handle the extra payment.
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 raising 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 in September 2025, which means loan rates are actually trending down slightly.
It’s impossible to predict if rates will drop further, 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.
Is now a good time to consolidate debt?
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, you can compare the following loan details:
-
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, with factoring rates going as high as 8.25%.
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, nor can you claim the loan interest as a qualified business tax deduction.
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
Business owners can take out small business loans — anywhere between $500 and $5 million — to finance expenses like payroll financing, inventory, equipment and other costs. Repayment terms could be as short as three months or as long as 25 years. Both traditional financial institutions and alternative online lenders offer small business loans.
Yes, bad credit business loans are available for business owners with personal credit scores as low as 500. However, these loans tend to come with higher interest rates and less flexible repayment terms.
A personal guarantee requires you as the business owner to be personally responsible for the company’s debt in case of default. A personal guarantee is fairly common on small business loans because it lowers the risk for a lender. But as the business owner, it may limit any protections your business structure offers.
Online lenders may be the best option to get a startup business loan with no money. Unlike brick-and-mortar banks that often have stricter eligibility requirements, some alternative lenders will work with you after about six months in business. If you can’t find a suitable lender providing business loans for new businesses, you can consider alternative options like crowdsourcing, self-funding or grant funding.
Each lender will have its own criteria based on the loan type. In general, you need a personal FICO Score of at least 500 to get a small business loan. But the lowest business loan interest rates are typically reserved for borrowers with higher credit scores. You can check and monitor your credit score for free with LendingTree Spring.
Most lenders look for minimum monthly or annual revenue when you apply for a loan. It’s common to expect a minimum annual revenue requirement of $50,000 or more for unsecured loans. However, you may be eligible for a business loan with a lower annual revenue if you can provide collateral.
If you were rejected for a business loan, revisit the reason why. Focus on improving your personal credit and business credit scores. If you haven’t operated in business long enough, wait a bit. In the meantime, consider a small business credit card or a personal loan to access capital for any immediate business needs.
Our methodology: How we chose the best small 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.