Reviews of Business Loan Companies and Direct Lenders
Getting a business loan can be a crucial step for entrepreneurs looking to start or grow a company. With so many lenders to choose from, it can be tricky to know where to start. This article provides reviews and comparisons of some of the top business loan companies and direct lenders to consider.
Online Lenders
Online lenders have become popular options for small business owners seeking loans. They provide the convenience of applying and managing loans entirely online. Many feature fast application processes and funding.
-Kabbage
Kabbage is an online lending platform providing lines of credit up to $250,000 for small businesses. They tout fast funding with automated approvals and money in your account in as little as 7 minutes[](https://www.kabbage.com/business-loans/).
Pros:
- Fast and easy online application process
- Can get funded in as little as 7 minutes
- No collateral required
Cons:
- Higher interest rates than some competitors
- Lower maximum loan amounts than some lenders
Kabbage is a good option for small lines of credit with quick funding times. Just be prepared for interest rates starting around 1.5% per month.
-Fundbox
Fundbox offers lines of credit between $1,000-$100,000 with flexible repayment plans. One unique aspect is they base approval on business transaction history rather than credit scores.
Pros:
- No minimum credit score requirement
- Flexible 12 or 24 week repayment plans
- Fast approval process
Cons:
- Rates from 1.2-1.4% per month
- Focuses on short-term working capital
If you need quick financing and don’t qualify with banks, Fundbox loans can help bridge cash flow gaps. Just factor in the higher borrowing costs.
-Key Factors in Choosing a Lender
With so many options, it can get overwhelming to decide where to apply for a small business loan. Here are some key considerations:Loan Amount – Determine how much money you need. Online lenders generally offer up to $250,000 while banks provide higher amounts.Rate and Fees – Compare interest rates and factor in origination/closing fees. Online lenders typically charge higher rates.Eligibility – Confirm you meet a lender’s minimum time in business, revenue, and credit score requirements.Speed – Online lenders boast fastest approval and funding times, often within days or weeks. Banks take longer, sometimes months.Evaluating these aspects can help narrow the list to a few best matches for your financing needs.
The Bottom Line
The lending world has expanded with more options than ever for small business owners to secure financing. Online lenders provide speed and convenience. Banks offer lower rates but less flexibility. And alternative lenders provide more specialized products. Take stock of your specific situation to determine the best lending partners.
Resources
Videos
Overview of online small business lending landscape:https://www.youtube.com/watch?v=R_YV_Ho_agM
-How Kabbage small business loans work:https://www.youtube.com/watch?v=S5U-OawitTY
Articles
Small Business Loan Rates Comparison Chart:https://www.valuepenguin.com/small-business/small-business-loan-rates7
Things You Should Know Before Applying for a Small Business Loan:https://www.nerdwallet.com/article/small-business/small-business-loans