Nearly two-thirds of small business owners start out with less than $50,000, according to the U.S. Small Business Administration. If you’re looking to stand out from the competition and increase your cash flow with a loan, you have a lot of options from which to choose.
It can be daunting to sift through all of the available routes for your business funding, but luckily we reduced the potential headache and narrowed down the list to a few great options for loans. Here are a few of the best loan programs for small businesses, along with some details about why they may be right (or wrong) for you.
Lendio may perhaps be the best loan program for small businesses because it works to find the most suitable loans and lenders for you and your needs. To get started, you simply fill out one 15-minute application online, and then it’s time for Lendio to put its matchmaking skills to work. You’ll be presented with a list of loans for which you qualify within 72 hours and you’ll have the ability to decide on one yourself.
Your odds are improved with Lendio because they partner with more than 75 lenders, who offer a range of loans from business financing and equipment loans to merchant cash advances and SBA loans. You’ll also get personalized guidance and expertise to help you along the way.
While Lendio might seem like a no-brainer, it’s important to note that some of the loans can come equipped with high interest rates, and hard credit report inquiries may be conducted.
BlueVine is good for those seeking a higher loan amount and also boasts an easy, quick application process. You can choose from three different options within the platform: term loans, business lines of credit, and invoice financing.
You’ll be in good hands no matter what you choose, but it’s the invoice financing that is offered for up to $5 million that puts BlueVine in a league of its own. You use your invoices as collateral for your loan, which means these loans are easier to qualify for than other types.
Speaking of easy, the BlueVine’s application requirements are pretty lax. All you need is $100,000 in annual revenue, three months in business, and a credit score of 530. The only downsides to BlueVines are that it has limited availability in some states and the fees can potentially stack up.
Fundbox describes itself as the “common-sense approach to business funding” thanks to unique processes such as connecting with your banking account or accounting software instead of making you fill out an application. It’s also a much faster process than other platforms—if the automated algorithm is satisfied with your information, you could potentially be approved in minutes.
Fundbox is also great for businesses with low credit because they only take into account what they see in your bank—they don’t even look at your credit score. If you don’t have a strong business credit, this may be the one for you.
Like BlueVine, the platform offers line of credit and invoice financing, although their maximum loan amounts are low. Fundbox will look at your bank account if you’re after line of credit, but you’ll need to apply with your accounting software if you want invoice financing.
Kabbage operates solely around lines of credit, for which is offers a convenient way to apply. The automated application only asks for your bank account—not your credit score or tax documents. This means that with Kabbage—like Fundbox—you could potentially get approved in minutes.
After you’ve been approved the convenience goes even deeper with the option to access your line of credit through PayPal, a business credit card, or your bank account. This means you can get instantaneous access with your “Kabbage card” and access through PayPal within minutes.
If you’re all about the convenience applications and access you may not be phased by the high rates and APR (or their confusing fee structure) and opt to go with Kabbage to gain working capital.
If you’re business is healthy and you’re interested in low rates, Funding Circle’s peer-to-peer lender platform will appeal to you. It connects you to investors instead of directly lending you funding, but the process is still virtually the same as other platforms: you’ll apply, receive your funding and make monthly payments through Funding Circle.
With a P2P model comes great rates—but getting approved is the tricky part. The application requirements are pretty heavy with Funding Circle, for example, it mandates a strict two years of business policy. However, if you get in, the rates and monthly payment option will make the hoops you have to jump through all worth it.
Overall, most small businesses could benefit most from going with Lendio thanks to its plethora of options, but use this information on it and the other platforms mentioned above to figure out which one would work best for you and your business.