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Types of Business Loans
🏛️
SBA 7(a) Loan
Up to $5M, government-backed, best rates. Long terms up to 25 years. 2+ yrs in business required.
From 7.75%
📋
Term Loan
Lump sum with fixed repayment schedule. Best for one-time investments, expansions, or equipment.
From 8.50%
💳
Line of Credit
Revolving credit — draw what you need, repay, redraw. Best for cash flow management and seasonal businesses.
From 9.00%
🚜
Equipment Financing
The equipment itself serves as collateral, unlocking lower rates. Covers vehicles, machinery, tech, and more.
From 7.00%
📈
Invoice Financing
Advance against outstanding invoices. Get up to 85% of invoice value upfront. Useful for B2B businesses with long payment cycles.
1%–5% fee
⚡
Merchant Cash Advance
Advance against future credit card sales. Fast funding, high cost. Last resort only — effective APRs can exceed 100%.
High Cost ⚠️
Top Business Lenders — 2026
🏆 Best SBA Lender
Live Oak Bank
SBA 7(a) & 504 Specialist — America's #1 SBA Lender by Volume
★★★★★
4.9/5
7.75%–10.50%
APR Range
$150K–$5M
Loan Amount
680+
Min. Credit
2–3 months
Funding Time
Live Oak is America's most active SBA lender — processing more SBA 7(a) and 504 loans than any other institution. Their industry-specialized teams understand specific business models (veterinary, funeral homes, dental, hospitality) and structure loans accordingly. Best for established businesses seeking long-term, low-cost capital.
Pros
- Lowest SBA rates available
- Industry specialist teams
- Up to $5M loans
- Long terms (25 yr real estate)
Cons
- Slow approval (2–3 months)
- Strong requirements
- Large minimum ($150K)
Bluevine
Best Business Line of Credit — Fast Approval
★★★★½
4.6/5
7.80%–29.97%
APR Range
$6K–$250K
Credit Line
625+
Min. Credit
Same day
Funding
Bluevine offers revolving lines of credit up to $250K with same-day approval for qualified applicants. Requires only 24 months in business and $40K monthly revenue. Interest charged only on what you draw. One of the fastest and most flexible options for working capital.
Pros
- Same-day decisions
- Revolving credit line
- Pay interest on draws only
- Simple online application
Cons
- Revenue requirements high
- No startups (24-mo min)
- Higher end rates for weaker credit
OnDeck
Best Fast Business Loans — Same-Day Funding
★★★★
4.2/5
29.9%–97.3%
APR Range
$5K–$250K
Loan Amount
625+
Min. Credit
Same day
Funding
Pros
- Same-day funding available
- 1+ year in business accepted
- Transparent terms
- Good for urgent needs
Cons
- Very high APRs (29–97%)
- Daily/weekly repayments
- Not for long-term financing
Fundbox
Best for Startups & Small Businesses
★★★★
4.3/5
4.66%–8.99%
Weekly Fee
$1K–$150K
Credit Line
600+
Min. Credit
Next day
Funding
Fundbox is one of the few lenders that accepts businesses as young as 6 months old. They connect to your accounting software (QuickBooks, Xero) for fast underwriting. Their line of credit has 12 or 24-week terms. Simple weekly payments, no prepayment penalty.
Pros
- Only 6 months in business
- Fast accounting integration
- Flexible draws
- No prepayment penalty
Cons
- Max $150K limit
- Short 12–24 week terms
- Weekly repayments
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Business Loan Comparison
| Lender | Type | APR / Cost | Amount | Min. Credit | Min. Time in Biz | Rating | |
|---|---|---|---|---|---|---|---|
| Live Oak Bank | SBA 7(a) | 7.75%–10.50% | $150K–$5M | 680 | 2 years | ★★★★★ | Apply |
| Bluevine | Line of Credit | 7.80%–29.97% | $6K–$250K | 625 | 24 months | ★★★★½ | Apply |
| Funding Circle | Term Loan | 7.49%–24.99% | $25K–$500K | 660 | 2 years | ★★★★ | Apply |
| Fundbox | Line of Credit | 4.66%–8.99% wk | $1K–$150K | 600 | 6 months | ★★★★ | Apply |
| OnDeck | Term Loan | 29.9%–97.3% | $5K–$250K | 625 | 12 months | ★★★★ | Apply |
| Kabbage (Amex) | Line of Credit | 9%–36% | $2K–$250K | 560 | 12 months | ★★★½ | Apply |
| Wells Fargo | SBA + Term | 7.50%–12.50% | $10K–$5M | 680 | 2 years | ★★★★ | Apply |
Business Loan FAQs
What credit score do I need for a business loan?
For SBA loans, most lenders want 680+. Online lenders like Bluevine and OnDeck accept 600–625+. Startups with strong revenue but limited credit history may qualify through alternative underwriting using bank statements and accounting data.
How does the SBA 7(a) loan work?
The SBA guarantees 75–85% of the loan, reducing risk to the lender, which results in lower rates for you. You apply through an SBA-approved lender (like Live Oak or Wells Fargo), not directly through the SBA. Terms up to 10 years for working capital, 25 years for real estate.
Can I get a business loan as a startup?
Most traditional lenders require 2+ years in business. However, Fundbox accepts 6 months, and some lenders consider strong personal credit and business plans. SBA Microloan program offers up to $50K for newer businesses.