Personal Loans for Business: Compare Rates from Top Lenders
Getting a personal loan for business use can be risky, but they are usually easier to qualify for than business loans
| Lender | User rating | Best for | APR | Term | Amount | |
|---|---|---|---|---|---|---|
|
Secured loans | 7.99% to 35.99% | 36 to 84 months | Starting at $2k | ||
|
Exceptional customer service | 7.99% to 24.99% | 36 to 84 months |
$2.5k – $40k |
||
|
Small loans | 7.99% to 35.99% | 24 to 84 months |
$1k – $50k |
||
|
Bad-credit borrowers | 7.23% to 24.00% (Test) | 12 to 84 months | Up to $125M |
Read more about how we made our picks for the best personal loans for business.
Personal loans for business at a glance
Best for: Secured loans – Best Egg
- APR
- 7.99% to 35.99%
- APR discount of up to 20% for using your home’s fixtures as collateral
- Can change your payment due date twice during the life of your loan
- May get your loan the next business day
- Must be a homeowner with equity to qualify (but renters can apply for an unsecured loan instead)
- Best Egg will put a lien on your home and can repossess your fixtures if you don’t pay
Best Egg offers unsecured loans, but its secured loans are especially unique. Instead of putting your home itself on the line (like you would with a home equity loan), you’ll use your home’s permanent fixtures as collateral. Examples of permanent fixtures are bathroom vanities or kitchen cabinets.
However, secured loans can be risky. If you don’t pay back what you borrowed, Best Egg can repossess your fixtures. Best Egg will also put a lien on your home, making it complicated if you want to sell it before you’ve paid your loan in full.
Read our full Best Egg personal loan review.
Best Egg uses built‑in home fixtures as collateral but doesn’t require an appraisal of them. It reviews your credit history and home equity instead.
You must also meet the requirements below to qualify for a Best Egg loan:
- Age: Be of legal age to accept a loan in your state (usually 18)
- Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
- Administrative: Have a personal checking account, email address and physical address
- Residency: Live in an eligible U.S. state (Best Egg operates in most states, with a small number excluded)
- Credit score: +
Best for: Exceptional customer service – Discover
- APR
- 7.99% to 24.99%
The APR ranges from 7.99% to 24.99% APR based on creditworthiness at time of application. Loans up to $35,000. Fast & Easy Process. Terms are 36 to 84 months. No prepayment penalty. This is not a firm offer of credit. Any results displayed are estimates and we do not guarantee the applicability or accuracy to your specific circumstance. For example, for a $15,000 loan with an APR of 10.99% and 60 month term, the estimated monthly payment would be $326. The estimated total cost of the loan in this example would be $19,560.
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- Repayment assistance programs available in case of financial hardship
- Rated 4.9/5.0 stars by LendingTree users
- Maximum APR caps at 24.99%
- Requires good credit and a moderate income
- Can only borrow up to $40,000, which might not provide the business funding you need
No one takes out a personal loan with the intention of falling behind, but life happens. Discover has repayment options that can help get you back on track.
Keep in mind, though, that the longer you take to pay off your loan, the more overall interest you’ll probably pay. Use a personal loan calculator to see how these loan modifications might impact your bottom line.
Read our full Discover personal loan review.
You’ll need to meet these eligibility criteria to get a Discover loan:
- Age: Be at least 18
- Citizenship: Have a Social Security number
- Administrative: Have a physical address, email address and internet access
- Income: Minimum income of $40,000 (individually or as a household)
- Credit score: +
Best for: Small loans – Upgrade
- APR
- 7.99% to 35.99%
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
- Borrow as little as $1,000
- Can apply with another person to boost approval odds
- Offers secured and unsecured loans (many lenders only offer unsecured)
- Mandatory origination fee
- Can’t take advantage of all discounts unless you’re taking out a debt consolidation loan
Small business owners looking for startup capital might want to consider loan marketplace Upgrade . It allows you to borrow as little as $1,000, and you don’t need perfect credit to qualify. Plus, if someone with good credit is willing to go in on a joint loan, you could qualify for a lower rate.
Note that Upgrade charges an origination fee on every loan. Some lenders only charge an origination fee if you have so-so credit.
Read our full Upgrade personal loan review.
To qualify for a loan through Upgrade , you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Best for: Bad-credit borrowers – Upstart
- APR
- 7.23% to 24.00%
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
QA Test
- Can still qualify with bad credit
- Don’t always need credit to qualify
- Most applicants can verify all of their information electronically
- Potential for an origination fee
- Only offers two different loan terms
- Mobile app only available to Apple users
Upstart connects potential borrowers with its partner lenders. Some of these partners are willing to work with those with bad credit, and in some cases, no credit. For more information, explore our bad credit loans options.
Upstart loans don’t always come cheap, though. You could end up with an origination fee and an APR of 24.00%. Choose Upstart ’s 36-month loan term to cut down on the overall interest you’ll pay.
Read our full Upstart personal loan review.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score:
What is a personal loan for business?
A personal loan for business is simply a personal loan that’s used to fund business expenses. Personal loans come as a lump sum of cash, which you will pay back in equal monthly installments.
Personal loans tend to be easier to qualify for than traditional small business loans. Your ability to get a personal loan only depends on your own credit factors, like your FICO score and your debt-to-income (DTI) ratio. Your DTI ratio measures how much debt you have compared to how much money you make.
When you apply for a business loan, the lender will also review your business’s financial health as well as yours. It will consider things like how long you’ve been in business, your revenue and your business credit score.
Still, getting a personal loan for business has downsides. One of the biggest is liability. If you don’t pay back your personal loan, your credit score will tank. With a traditional business loan, liability may only fall on the business itself, shielding your personal credit score.
Personal loans vs. business loans
Lenders set their own eligibility requirements, loan amounts and loan terms. Even so, the information below is a good launching point when comparing your loan options.
| Business loan | Personal loan for business | |
|---|---|---|
| What is it? | Loans that are specifically designed for business expenses. Examples here are small business administration (SBA loans) and equipment loans. | A personal loan that you use for business purposes. |
| Common eligibility requirements | A business credit score of at least 70 for the best rates A solid personal credit score $50,000 or more in annual revenue At least six months’ time in business A workable business plan and balance sheet Personal and business tax returns Articles of incorporation Collateral, in some cases | Might qualify with at least fair credit (580+), but need at least good credit (670+) for affordable rates DTI ratio below 36% Several years of positive payment history on your credit cards and other installment loans Regular source of income |
| Key takeaways | Can shield you from personal liability if you can’t repay Tend to have lower rates, and interest is usually tax deductible Offers larger loan amounts and in some cases, longer repayment terms Helps you build business credit Longer application process and tougher eligibility requirements | Interest may be tax deductible as long as you use the loan for business purposes You may qualify with bad credit, but prepare to pay an APR of 35.99% (or higher) Smaller loan sizes might not meet your needs Has no impact on your business credit Application process is generally quick, and some lenders can provide same-day funding |
When could getting a personal loan for your business make sense?
- You’re a new business owner or founding a startup. You might not qualify for a business loan if you’ve been operating for a short time and/or you don’t bring in a lot of revenue.
- You have good personal credit. Even though it’s generally easier to get approved for a personal loan than a business loan, you’ll still want good credit. Personal loans usually have lower APRs than credit cards, but only for people who have good to excellent credit.
- You know you can repay your loan. Defaulting on a personal loan will have a disastrous effect on your personal credit score.
When could a business loan be a better option?
-
You’re running a successful, longstanding business
Business loans usually have lower rates than personal loans, and they provide more money, too. They’re also harder to qualify for. You’ll have to provide a lot of documentation to prove your business is capable of paying back the loan. -
You want extra liability protection
Your personal credit score might not be affected if you can’t pay your business loan. -
You need a loan for a specific business purpose
Some types of business loans are better for meeting specific business-related needs. For instance, if you need to buy a forklift, business equipment financing might be a good fit.
When banks compete, you win
You’d shop around for flights. Why not your loan? LendingTree makes it easy. Fill out one form and get lenders from the country’s largest network to compete for your business.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. It’s free, simple and secure.
Shop your offers
LendingTree users get 11 personal loan offers on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
How to compare personal loans for business
Once you’ve gotten a handful of loan offers, compare them so you can find the best deal.
APR: Your annual percentage rate tells you how much your loan will cost you, including interest and fees. The higher this percentage, the more expensive the loan.
Fees: The most common personal loan fees you’ll see are origination fees, late payment fees and returned payment fees. An origination fee is an upfront fee that the lender will deduct from your loan before sending you your money. Some lenders only charge these if you have rocky credit. Others apply them to every loan.
Loan term: Your loan term is how long it will take to repay your loan in full if you stick to your repayment schedule. With a short-term loan, you’ll likely pay less interest overall, but your monthly payment will probably be higher. Long-term loans usually offer more affordable monthly payments, but you’ll likely pay more interest over time.
Funding time: The funding timeline tells you how long it will take to receive your funds. Some lenders can offer quick loans with same-day funding, while others may require a few business days.
Lender perks: Some lenders may also offer perks, such as free credit monitoring, live chat or zero-fee loans. Outside of rates, think about what’s important to you and seek out lenders that can accommodate.
How we chose the best personal loans for business
We reviewed more than 40 lenders and loan marketplaces to determine the overall best six personal loans for business. To make our list, lenders must offer personal loans for business with competitive APRs.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best personal loans for business come from Best Egg, Discover, LightStream, Rocket Loans, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings. Read more about our editorial guidelines.
Why trust LendingTree’s methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Usually, but not all lenders offer personal loans for small businesses. If a lender lets you use a personal loan for business, you’ll have to take it out in your name, not your business’s. You can usually find a lender’s loan restrictions on its website.
Personal loan interest is usually a tax deduction if you use it toward business expenses. That said, it’s a good idea to verify your returns with a professional before filing.
Personal loans are often easier to qualify for than small business loans, which may be beneficial to some borrowers. Yet, they require the business owner to accept personal responsibility for paying back the loan. That means your personal credit score is on the line if you make late payments or default.