In this article we will review several of the top online lenders where you will be able to find the best small business loans. We’ll give you the pros and cons of each to pick and choose the lenders that suit your needs and offers the best small business loans for your company.

Best Small Business Loan: KabbageKabbage

Kabbage provides a business line of credit to businesses that have been trading or at least 12 months with revenue of at least $50,000 for a term of 6 to 18 months at an effective rate starting at 24%. The loans at Kabbage are front loaded, have monthly payments and fee that can reach up to 10% of the monthly payments. This means that the loans being offered at Kabbage are some of the most expensive loans that can be found on lending sites.

The high cost for the small business loans however comes with some benefits that include extremely fast processing times. Kabbage is one of the most borrower friendly lenders out there when it comes to convenience of processing the application to repayment of loans. While other lenders have weekly or daily plans, Kabbage has monthly plans without any early payment penalty.   

Pros

  • Rapid processing
  • Easy application process

Cons

  • Expensive

Best Small Business Loan: CanCapitalCan Capital

CAN Capital is one of the oldest lending companies in the market. CAN capital provides lending to businesses that have been trading for at least 4 months and earning revenue of at least $4500 per month. They provide loans starting from $2500 up to $250,000, with loan terms extending between 6 to 18 months. The fee and processing charges are up to 3% of the loan amount. CAN capital also requires collateral in the form of personal guarantee. CAN capital does not provide long term loans, it only services short term loans and merchant cash advances. This makes CAN capital a very borrower friendly lending company when it comes to ease of processing and cost of borrowing.

Pros

  • Cheaper than some competitors
  • Easy application process

Cons

  • No long term loan

Best Small Business Loan: OnDeckOnDeck

OnDeck has been in the online lending sector since over a decade. OnDeck provides lending to businesses that have been trading for at least 12 months, with a credit score of at least 600 and minimum revenue of $100,000 annually. OnDeck provides loans ranging between $500 to $500,000, for duration between 3 to 36 months. Their effective annual percentage starts from 11.9%. OnDeck charges fee and servicing charges at 0.4%-0.43% and an origination fee of 4%.

On deck provides funding for various business needs, it has a very quick processing time thanks to its algorithm that makes lending decisions based on the eligibility criteria. On the downside, OnDeck is on the more expensive spectrum of the lending sector but this is compensated by its quick processing times and customer support.

Pros

  • Rapid processing time
  • Algorithm based eligibility checker

Cons

  • Expensive

Fundbox LogoFundbox

Fundbox has been around since 2013, and it offers invoice financing, line of credit and business to business (B2B) payment services to small businesses. Fundbox outranks its competitors based on its open eligibility criteria that only requires a business to have a credit rating of 500, this means that businesses even with poor credit and low turnover are eligible for funding form Fundbox whereas more successful businesses may want to seek other lenders for higher funding.

FundBox is convenient, has a simple application and processing feature and borrowers find the whole process to be simple and easy.

Pros

  • Open eligibility criteria
  • Easy application process

Cons

  • Only provides short term loans

Best Small Business Loan: BluevineBluevine

Founded in 2013, BlueVine is an online lending company that specializes in invoice factoring, lines of credit and term loans. The company has a story that makes it sympathetic towards helping merchants overcome their cash flow problems.

Invoice factoring is usually a complicated process but BlueVine specializes in making this complicated process simple and easy both for the lender and the borrower. It has got a different eligibility criteria and terms for each product it offers, including it among the more flexible lenders. One downside of BlueVine is that it is on the more expensive side but like every other expensive lender, Blue vine compensates for the high price by making the whole process quick and convenient for the borrowers.

Pros

  • Rapid process
  • Easy application process

Cons

  • Expensive

Best Small Business Loan: Street SharesStreetShares

StreetShares was originally founded by and for veterans but over time it has expanded its offering to include businesses that are run by people who are not veterans too. It is an online lending platform that specializes in offering loans on installment, business lines of credit and a contract financing service.

StreetShares stands out from the competition as it is on the less expensive end of the cost spectrum. Their annual percentage rates start from 7% and in order to be eligible they require a business to be trading for at twelve months, having at least $25000 in annual revenue with a credit score of 620 or more.

Streetshares however offers loans up to the extent of only $250,000 and contract financing for contracts up to $500,000 that makes it ideal for young and small businesses but not so much for business with greater financing needs.

Pros

  • Cheaper than competitors
  • Ideal for small businesses

Cons

  • Doesn`t offer long term loans

Best Small Business Loan: SmartBiz Sba LoansSmartBizLoans

SmartBiz has been around since 2009 and it specializes in small business administration (SBA) loans. SmartBiz itself doesn`t lend, it is instead a platform that brings together the SBA lenders and borrowers and matches eligible borrowers to relevant SBA lenders.

Eligibility criteria for SmartBiz include a trading period of at least 2 years and business credit score of at least 150. SmartBiz offers debt financing, working capital financing and commercial real estate SBA loans through its lending partners.

Pros

  • Specializes in SBA loans

Cons

  • Stringent eligibility criteria

Lending Club LogoLending Club

Present in the industry since 2006 Lending Club is better known as a peer to peer lending platform, it has also expanded its lending service to include business installment loans and auto financing. In order to be eligible for lending club a business must be trading for at least 12 months with at least $50000 annual revenue. Lending club offers business loans ranging between $5000 – $300,000 for a period of one to five years, with interest rates ranging between 6% to 30% and an origination fee between 2% to 9%. Lending club also requires collateral which depends on the amount of loan.

Lending club has simple and quick application process and its terms and criteria position it in a very competitive zone of the market, ideal for businesses looking for cost effective lenders.

Pros

  • Easy application process
  • Not very expensive but not cheap either

Cons

  • Doesn`t offer long term loans

Best Small Business Loan: UpstartUpstart

Upstart is different from all the other lenders discussed so far. It offers loans that can be used either for personal borrowing or business borrowing. It does not have a stringent eligibility criteria like other lenders, instead Upstart gives out loans to anyone with a credit score of at least 620, it judges borrowers not by the strength of their business but by their personal ability to pay and this makes Upstart ideal for start ups. Upstarts offers loan ranging between $1000 to $50000 for a period of 3 to 5 years with interest rates starting from 8%,, this makes it a small loan lender, ideal for start ups.

Pros

  • Favors Start ups
  • Simple eligibility criteria
  • Cheaper than competitors

Cons

  • Only offers small term small scale loans.