The Ultimate US Business Loans Guide
Find out what you need to know about business loans — including how they work, what
A Guide to 5 Business Loan Providers in the US
We’ve put together a list of 5 U.S. business loan providers to help you make the right choice.
Business loans could be a great way to access extra funds for your business. Whether you’re looking to expand into new markets, purchase a commercial property, or improve cash flow, a business loan may be able to help.
But with so many providers on the market, it could be difficult to know who is the best fit for your business. That’s why we’ve put together a list of 5 U.S. business loan providers to make that decision a bit easier and help you make the right choice.
What is a Business Loan?
A business loan is a loan that is taken out strictly for business purposes. These could be used for all kinds of business-related tasks, including boosting working capital or purchasing fixed assets like a commercial property, equipment, or machinery.
These loans are often paid back in regular installments, and each loan will come with a unique interest rate and associated fees. Typically, these will be determined by a range of factors, including lender and eligibility criteria.
What are the Benefits of a Business Loan?
Large Loan Amounts
Business loans from some providers could offer large loan amounts and favorable interest rates. With a bank business loan, which is a loan lent by a traditional bank or credit union, you could borrow over $500,000 if you have a strong credit score. This could give you access to more working capital should you need it.
Range of Loan Products Available
There is a range of business loan products available. Each has its own unique pros and cons, and can support you through different stages of your development. Some products include:
- Business credit cards
- Lines of credit
- Term loans
- Commercial mortgages
- Equipment finance
- Speciality loans for specific industries (i.e., healthcare lending)
Access to SBA-Guaranteed Loans
Some providers will be able to act as a pathway to SBA-guaranteed loans. These include the SBA 7(a) (which are offered through lenders) and SBA Express Loan programs (which are offered through banks). These could allow for larger loan amounts (up to $5 million) and longer repayment terms.
A downside of SBA loans is that they may involve more paperwork and take longer to close than a typical loan.
Capital for Growth and Expansion
Business loans offer working capital that can be put to a range of growth or expansion projects without having to tap into cash reserves. Expanding locations, investing in R&D, purchasing inventory/equipment, or increasing staff headcount could all be funded with a business loan, possibly helping you scale your operations and remain competitive.
Cash Flow Stability
Business loans could be used to provide short-term capital to help stabilize your cash flow. Cash flow gaps, covering operational expenses and maintaining stability throughout seasonal fluctuations or delays in customer payments, are all ways a business loan could help.
Building Credit
If you keep up with your loan repayments, then this could directly contribute to your business credit score. A stronger credit history could help secure future financing more easily, with better rates and higher loan limits. Just be wary that if you fail to meet your payment obligations, then your credit score will be negatively impacted.
Retain Full Ownership and Control
A business loan does not require giving up equity in your business in most circumstances. This means you will maintain full ownership of your business and control over key decision-making. You will also not have to share profits or involve external investors as part of the loan.
5 Business Loan Providers to Consider
Before we kick things off, we just need to point out that this isn’t a ranking table. Instead, we’re going to compare 5 business loan providers in the U.S. and the loans they offer. This way, you can make an informed decision and find the best provider for your specific needs.
| Provider | Key Products |
|---|---|
| Rapid Finance | Small Business Loans, Merchant Cash Advance, Line of Credit, Bridge Loan, SBA Loan, Invoice Factoring, Asset‑Based Loans, Commercial Real Estate Loans |
| Bluevine | Line of Credit, Term Loan, SBA Loan, Business Credit Card |
| OnDeck | Business Line of Credit, Business Term Loans |
| Kapitus | Business Loans, SBA Loans, Line of Credit, Equipment Financing, Revenue‑Based Financing, Invoice Factoring, Purchase Order Financing |
| Bank of America | Unsecured & Secured Lines of Credit, Unsecured & Secured Business Loans, Commercial Real Estate Loans, Equipment Loans, SBA 504, 7(a), and Express Loan Programs |
- Types of Loans Offered
- Small Business Loans
- Merchant Cash Advance
- Line of Credit
- Bridge Loan
- SBA Loan
- Invoice Factoring
- Asset-Based Loans
Rapid is a financial institution that is invested in the success of its clients. They commit to empowering small businesses, supporting them with fast, transparent, and tech-enabled financing solutions they can trust. This commitment is shown in their customized approach, fresh insight, and a passion for business financing.
| Product | Lending Amount | Repayment Terms |
|---|---|---|
| Small Business Loans | $5,001 up to $1 million | 3 to 60 months |
| Merchant Cash Advance | $5,000 to $500,000 | Repayments are based on the business's receivables, so there is no fixed payment term. The estimated range is between 3 months and 18 months |
| Line of Credit | $5,001 up to $250,000 | 3 – 18 months |
| Bridge Loan | $5,001 and range up to $1 million | 3 months – 5 years |
| SBA Loan | $500 to $5.5 million | 1 year to 30 years |
| Invoice Factoring | $20,000 up to $10 million | The funder will receive payments on invoices directly from your customers, or you will forward your customers’ payments to the funder until the entire advance amount is paid off |
| Asset-Based Loans | $50,000 and range up to $10 million | 6 months up to 36 months |
| Commercial Real Estate Loans | $75,000 to $2 million | 5 – 20 years |
Why Use Rapid Finance?
Quick Funding: Rapid Finance claims that the funds may appear in your bank within hours of approval.
Free Online Calculator: Rapid Finance offers a free business loan calculator to see how much you could potentially qualify for. The criteria this is based on are your credit history and monthly sales volume. Any results shown are for illustration purposes only. Applications are subject to approval.
Easy Application: Apply online or over the phone. To get started, all you need to provide is three months of business bank statements, your business tax ID, and your completed business application.
Transparent Quotes: All of Rapid Funding’s quotes are transparent with no hidden fees or surprises.
Wide Borrowing Range: Borrow between $500 (SBA Loan) to up to $10 million (Invoice Factoring).
- Types of Loans Offered
- Line of Credit
- Term Loan
- SBA 7 (a) Loan
- Credit Card
Bluevine was founded over 10 years ago to deliver better banking solutions for growing businesses. They combine industry-leading technology and security with dependable customer support to provide business owners with the funding and services needed to succeed. They have won awards and recognition from numerous institutions, including Forbes, Entrepreneur, and TechCrunch.
| Product | Lending Amount | Repayment Terms |
|---|---|---|
| Line of Credit | Up to $250,000 | Repay automatically on a fixed schedule |
| Term Loan | Up to $500,000 | Up to 24 months |
| SBA 7 (a) Loan | Up to $350,000 | Up to 10 years |
| Credit Card | N/A | N/A |
Why Use Bluevine?
Experience: Bluevine is the largest small business banking platform in the U.S. They have helped 750,000+ businesses secure a total of $16 billion in business loans.
Application Won’t Impact Credit Score: During the application and review process, Bluevine confirm that your personal credit score will not be impacted. If you accept an offer, this may result in a hard inquiry and could impact your score.
Fast Review Times: Bluevine and its lending partners may review your application in as quickly as 24 hours.
Dedicated Credit Card: Bluevine has its own dedicated Mastercard that comes with no annual fees and unlimited 1.5% cashback. This is 1.5% cash back earned per $1 of eligible net purchases (purchases minus returns/credits). Make sure to review their website for further information.
Borrow Up to $500,000: Through Bluevine’s term loan, you could access up to $500,000 with predictable repayment terms. To access this level of funding, you will have to be an applicant with the strongest credit profile.
- Types of Loans Offered
- Business Term Loans
- Business Line of Credit
Since 2006, OnDeck has funded 150k+ businesses with $15 billion across the U.S.. They have dedicated human support and transparent pricing, and their commitment to quality is shown in their A+ Rating with the Better Business Bureau.
| Product | Lending Amount | Repayment Terms |
|---|---|---|
| Business Line of Credit | $6,000 – $200,000 | 12, 18, or 24 months |
| Business Term Loans | $5,000 to $250,000 | Up to 24 months |
Why Use OnDeck?
Fast Funding: Applications only take a few minutes, and OnDeck claims that your funds could arrive in just 24 hours.
Free Business Credit Score: Backed by Equifax, OnDeck offers a free business credit score check with no strings attached. Ondeck confirms that this arrives in your inbox within a few days and does not require an account to be created. http://ondeck.com/business-credit-score
Credible Lender: They have funded 150,000+ businesses since 2006 and have an A+ Rating with the Better Business Bureau.
Dedicated Support: You will benefit from a dedicated U.S.-based loan advisor who is available 5 days a week.
Flexible Borrowing Terms: Borrow between $5k – $250k with a maximum 24-month window with a business term loan. OnDeck’s line of credit options let you borrow from $6K – $200K, with 12, 18, or 24 months repayment terms, and allow you to repay either weekly or monthly.
Kapitus
Grow your business with tailored, transparent, and ethical financing solutions.
- Types of Loans Offered
- Business Loans
- SBA Loans
- Line of Credit
- Equipment Financing
- Revenue-Based Financing
- Invoice Factoring
- Purchase Order Financing
Founded in 2006, Kapitus’ mission is to help small business owners grow their organizations by providing tailored, transparent, and ethical financing solutions. Their brand promise is that they keep your interests at the center of the financing process and operate with transparency, fairness, and integrity. As of March 2024, business owners across the U.S. have accessed more than $5 billion in financing via Kapitus.
| Product | Lending Amount | Repayment Terms |
|---|---|---|
| Business Loans | Up to $5,000,000 | 6 to 24 months |
| SBA Loans | Up to $5,000,000 | Varies |
| Line of Credit | Up to $750,000 | 12 to 36 months |
| Equipment Financing | No maximum | Monthly |
| Revenue-Based Financing | Up to $5,000,000 | Averages 6 to 24 months |
| Invoice Factoring | $200,000 – $7,000,000 | 30 days – 120 days |
| Purchase Order Financing | $200K – $7 million | N/A |
Why Use Kapitus?
Streamlined Application Process: Their simple application process allows you to receive up to six competing financing offers with just one application.
Support: Throughout your application process, Kapitus’ financing specialists are there to help. They can help you determine which option is best for your business’s unique needs, compare offers, and complete all of your paperwork.
Rich Resource Center: On their website, you will find a whole host of resources that can help you manage your business finances in multiple ways.
No Maximum Borrowing Amount: If you are looking to access Kapitus’ equipment financing solution, then you will not be restricted by a maximum borrowing limit.
Experience Helping Businesses Grow: Kapitus has provided $7 billion in capital to 65,000 businesses. That’s an average of $107,692.31 per business.
- Types of Loans Offered
- Unsecured Line of Credit
- Secured Line of Credit
- Secured Business Loans
- Unsecured Business Loans
- Commercial Real Estate Loans
- Equipment Loans
- SBA 504 Loan Program
- SBA 7(a) Loan Program
- SBA Express Loan Program
The oldest part of Bank of America can be traced back 240 years ago and since then, it has become one of the world’s leading financial institutions. They commit to responsible growth and maintain strong guidelines for business practices and employee conduct.
| Product | Lending Amount | Repayment Terms |
|---|---|---|
| Unsecured Line of Credit | From $10,000 | 1 year (can be renewed annually at the bank’s discretion) |
| Secured Line of Credit | From $1,000 | Reviews begin at 12 months |
| Secured Business Loans | From $25,000 | Up to 4 years (when secured by business assets) / Up to 5 years (when secured by CDs) |
| Unsecured Business Loans | From $10,000 | 12–60 months |
| Commercial Real Estate Loans | From $25,000 | Up to 10 years (with balloon) / Up to 15 years (with full amortization) |
| Equipment Loans | From $25,000 | Up to 5 years (when secured by business assets) |
| SBA 504 Loan Program | From $400,000 and up | Up to 25-year fully amortized |
| SBA 7(a) Loan Program | From $200,000 up to $5,000,000 | Up to 25-year fully amortized |
| SBA Express Loan Program | From $25,000 up to $500,000 | Up to 25 years |
Why Choose Bank of America?
Reputable Name: Bank of America is one of the world’s leading names when it comes to financial institutions.
Free Business Credit Score: Powered by Dun and Bradstreet, you can check your business’s credit score completely free of charge.
Interest Rate Discounts: If you are a Preferred Rewards for Business member, then you could benefit from lower interest rates.
Experience With Multiple Customer Base: Bank of America serves businesses of numerous sizes, including small, mid-sized, commercial & corporations and institutions.
Dedicated Credit Cards: Choose from one of four different types of Mastercard business credit cards, each with its own unique reward schemes.
How to Choose a Business Loan Provider
Loan Terms and Amounts
Start by confirming how much you want to borrow and the terms under which you are borrowing. Remember, although a shorter repayment window will typically result in higher monthly payments, it could potentially save you more in the long run as you will pay less in interest.
If you opt for a loan with a longer repayment period, then your monthly repayments will typically be lower, but you could potentially end up paying more overall via interest.
Interest Rates and Fees
You may have the option to choose between a fixed and variable interest rate. If you opt for a fixed rate, then you will maintain that rate throughout the entire period of your loan repayment. It helps you budget accordingly, as this rate is agreed upon before you sign any agreement.
A variable interest rate can change throughout your repayment window. Your prime rate will fluctuate in accordance with the Federal Reserve Board. If it’s low, then you will benefit from lower interest repayments, but if it’s high, you could end up paying more than if you were on a fixed rate.
Secured or Unsecured Loan
If you opt for a secured loan, then you will put up assets like securities, cash, and other assets in brokerage accounts to borrow against. These loans will typically come with more favorable rates because if you default on your repayments, you risk losing the asset. This means there is more incentive for you to keep up with repayments while minimizing the risk to the lender.
Non-secured loans flip that risk. You no longer have collateral to borrow against, placing the risk on the lender, and as a result, it often comes with rates benefiting the lender, not the borrower.
Eligibility Criteria and Application Process
You may find that some lenders have more stringent requirements to borrow from them than others. A range of different factors could be examined to determine whether you are eligible for a loan. These may include:
- Name of the business
- Business street address and date you moved there
- Business phone number
- Business tax ID number
- Nature of the business
- How long the business has been in operation
- Number of employees
- The business plan or purpose of the loan
- The Social Security numbers of those who own 20% or more of the business
Loan Purpose and Industry
There is a range of business loans available, with some more suited to certain needs than others. For example, loans may be given with commercial real estate purposes in mind. This could include purchasing, renovating, or building a commercial property.
Depending on the industry you operate in, you may find it more difficult to acquire a business loan through more traditional methods. High-risk industries like adult services, debt relief, or travel may need to find specialist lending from providers that grant loans in high-risk sectors.
Reputation and Customer Service
Sites like Trustpilot or a provider’s Google review score can give an insight into what current and past customers are saying about them. One or two bad reviews are to be expected, but keep an eye out for any patterns (both good and bad) as these are probably a true indication of their service.
Remember that customer reviews are subjective, so it is always best practice to do your own research.
FAQs
What is a business loan?
A business loan is a sum of money borrowed by a company from a lender to cover expenses like operations, expansion, or equipment. It’s repaid over time with interest, based on agreed terms. Loans can be secured or unsecured, depending on the borrower’s credit and assets.
What does interest mean in relation to a loan?
The interest rate on a loan is the percentage charged by a lender on the principal amount. It is usually expressed as an annual percentage rate (APR) and determines the cost of borrowing over a year. Interest can also apply to earnings on deposit accounts.
What is the difference between a secured and an unsecured loan?
A secured loan will require you to put assets down as collateral, such as property, equipment or cash. This will often result in more favorable repayment terms and higher loan amounts due to lower risk to the lender. An unsecured loan does not require collateral as part of the agreement.
What is a 7(a) loan?
A 7(a) loan is the SBA’s main loan program, offering up to $5 million for small businesses. It helps with real estate, equipment, working capital, refinancing current business debt, and more. Eligibility depends on business type, location, and credit. Lenders guide applicants through the available 7(a) loan options.
How can I get a loan for my business?
Just tap the button on this page and answer a few quick questions about your business. Then, based on the information you enter on the application form, if you meet the criteria of one of the partners on our panel, they will contact you to discuss your application further. There’s zero obligation to accept an offer if it doesn’t meet your needs!
