Access to capital is essential to running a small business, whether for funding operations, filling gaps in cash flow or taking advantage of an opportunity to grow and expand. There are many sources of funding for small businesses, including traditional banks, but their eligibility requirements and restrictions frequently exclude applicants. To help you choose from among seemingly endless fintechs, alternative lenders and funding marketplaces, we narrowed down the list to the best options. When examining different lenders to determine our best picks for small businesses, we considered the cost to borrow, whether the lender requires collateral, loan terms and more.
Why You Should Trust Us
business.com has spent years evaluating and testing hundreds of business software and services to guide business owners to the best solutions on the market. Our in-depth review process involves participating in vendor demos, taking software for trial runs, studying service agreements and researching user feedback. Each analysis considers pricing, feature set, limitations and more, and every review is assessed for accuracy and objectivity before publication.
To determine the best business loan and financing options for business owners needing capital, we examined the type of funding offered by each lender, as well as the rates, terms and qualifications for approval. We also investigated the ease of the application process, whether personal guarantees and special documentation were required, and how fast funding was provided. Learn more about our methodology and editorial process.
What is a Small Business Loan
A small business loan provides business owners with additional capital when needed. There are a variety of types of loans, including term loans, lines of credit, equipment loans, working capital loans and merchant cash advances (MCAs). Each type of loan can fill a different capital need. For example, you might take out a line of credit to help fill a cash flow gap. A working capital loan is good to help cover day-to-day expenses, and an equipment loan is good to help cover the costs of new equipment, such as machinery or computers.