11 Best Small Business Loan for Startup In 2021

business loan for startup

Small business loans use to pay for wages, new equipment, and virtually everything else that helps a company develop. We chose the finest small business loan for startup of 2021 for this list because they provide low rates, acceptable repayment periods, and fees for qualified applicants.

 

Best Small Business Loan for Startup Reviews

1. BlueVine

business loans startup

BlueVine is a financial technology company, not a bank, that provides small businesses with business checking, business loan for startup, and invoice factoring. Their cost-effective invoice factoring solution enables cash-strapped businesses to increase their credit limits by delivering 85-90 percent of the money upfront.

BlueVine invoice factoring offers up to $5 million with a weekly interest rate of 0.25 percent. Minimum requirements include a 530 FICO score, three months in a company or more, $10,000 in monthly income, and a B2B business (business to business).

Types of loans: Lines of credit and invoice factoring.

PROS:

  • Quick approvals
  • To qualify, you must have a minimum FICO score of 530.
  • For loans incurred in 2020, a PPP loan forgiveness application is now accessible.

CONS:

  • Only available to B2B businesses.
  • To be qualified for invoice factoring, you must have a monthly revenue of at least $10,000.
  • There is no funding available for medicinal marijuana companies, auto dealerships, or non-profits that rely on donations.

 

2. OnDeck

OnDeck term loans distinguish their quick funding, loyalty, and prepayment advantages. If you currently do business with this lender, they will waive any leftover interest rates and even eliminate the origination cost if you take out a new business loan for startup.

Prepayment advantages from OnDeck allow borrowers to pay off their loan in full while having the remaining interest deleted without bearing any additional costs. OnDeck, on the other hand, puts a blanket lien on all of a company’s assets and asks borrowers to sign a personal guarantee, which states that the lender can go after the borrower’s assets if the loan is not paid.

business loans

Types of loans: Short-term business loan for startup and lines of credit are available.

PROS:

  • $100,000 credit lines and $250,000 small company loans are available.
  • In minutes, you may apply for a loan online and have it approved.
  • A minimum credit score is required.

CONS:

  • To qualify for a loan with OnDeck, you must have been in business for at least one year and have a business bank account.
  • A minimum of $100,000 in revenue is required.
  • Business liens and personal guarantees are required.

 

3. Fundbox

Fundbox is a small company financing platform driven by AI that offers lines of credit and short-term loans. According to the company, you may obtain a credit decision in as little as three minutes, making it one of the quickest ways to get accepted for a small business loan for startup with an online lender today.

Borrowers may connect their business accounts to the Insights advantage software to get cash flow projections, monitor balances, and simulate business situations by inputting prospective transactions. To be eligible for a line of credit, the company must have used a suitable business bank account for at least three months before applying.

Types of loans: Lines of credit and term loans are two types of loans.

PROS:

  • Lines of credit of up to $150,000 are available.
  • There are no minimum credit score or income restrictions.
  • There are no consequences for paying in advance.

CONS:

  • The term loan is presently in beta, and not all applicants are eligible.

small business loans

 

4. Funding Circle

Funding Circle provides small business loan for startup with fixed fee interest rates starting at 4.3% per year for qualified customers, which is still cheaper than other short-term small company lenders. Within an hour of submitting your online application, you’ll contact a loan consultant who will assist you in determining the best choice for your company.

Funding Circle loans have set monthly payments, and if you pay off your loan early, you won’t charge an early payment penalty. A lien on your business assets is also required. as well as a personal guarantee from the principal business owners.

Types of loans: SBA loans, lines of credit, working capital loans, merchant cash advances, and invoice factoring are some of the options available to small businesses.

PROS:

  • Loans of up to $684,000 are available.
  • Online application with payout in three business days or less
  • There is no requirement for a minimum revenue.

CONS:

  • When you take out a loan, you will charge a one-time cost.
  • A personal guarantee and a lien on corporate assets are required.

small business loans

 

5. National Funding

business loans startup

National Funding offers many lending alternatives, including low-credit small business funding. Borrowers must have a personal credit score of 500 for a direct loan (one of the lowest necessary scores among this type of lender) and 475 for renewals to qualify for a loan with National Funding.

National Funding examines yearly business revenue, bank account, and years in the company before granting permission. You may apply online and have your loan approved the same day, with money available in as little as 24 hours.

Types of loans: Small business loan for startup, equipment financing, and leasing, merchant cash advances, working capital loans, business loan for those with low credit, and unsecured business loan for startup are all accessible.

PROS:

  • With no upfront charges, you may borrow up to $500,000.
  • Discounts for early payment
  • Loans are available for 6 to 15 months.

CONS:

  • Interest rates, discounts, and origination costs are all unknown.

 

6. TD Bank

For company owners, TD Bank offers a choice of loans and lines of credit. The company, on the other hand, stands out for providing banking solutions for healthcare professionals. Including tailored financing alternatives for dentists and veterinarians, as well as eye care specialists and other physicians.

TD Bank funds specialize in mergers and acquisitions as well as partner buy-ins and outs for corporate development and relocation. It provides up to $12 million in financial solutions as well as 100% practice financing and operating capital. TD Bank Merchant Solutions powered by Clover also enables companies to accept cash, credit, and debit cards, as well as Apple Pay, Google Pay, and other payment methods.

business loans startup

Types of loans: SBA loans, lines of credit, commercial real estate mortgages and USDA loans options are available.

PROS:

  • Credit cards, bank accounts, and merchant services are available.
  • Mobile banking and online banking
  • For loans taken out in 2020, PPP loan forgiveness is available.

CONS:

  • The application process necessitates a lot of paperwork and visits with the lender.

 

7. Biz2credit

Biz2credit is an online marketplace that matches businesses with the proper business finance source and loan program using proprietary technology. Their quick procedure allows potential borrowers to build a profile in around 1 minute, submit an application in 4 minutes, get funding alternatives in 24 hours, and have cash accessible 48 hours after final approval.

This marketplace offers funding for a wide range of small enterprises, with different minimum loan criteria, interest rates, and fees depending on the lender chosen.

Types of Loans: SBA loans, credit lines, unsecured business loan for startup, equipment finance, and merchant cash advances are just a few of the options available.

PROS:

  • There are no fees associated with applying.
  • Receive funding options and a decision within 24 hours.
  • Special funding options are available for women, veterans, and minorities.
  • The Covid-19 Resource Hub provides information and assistance to small business owners.
  • CPAs can use this site to find funding for their businesses.

CONS:

  • At the time of loan closing, there is an origination charge.
  • Most non-bank lending options include an underwriting charge.

business loans for startups

 

8. Lendio

Lendio is a marketplace that connects small businesses with over 75 different lenders, including Bank of America, American Express, On Deck Capital, Mulligan Funding, Funding Circle, and Fundbox. Borrowers may apply online in as little as 15 minutes, and money is disbursed within 24 hours if accepted.

Lendio can connect you with credit repair companies, bookkeeping services, and legal aid, in addition to providing access to some alternative lenders and financing solutions for small businesses. They include a variety of loan calculators, an educational blog, and business tools on their website.

Types of loans: SBA loans, business credit cards, line of credit, short-term loans, business term loans, merchant cash advance, equipment financing, accounts receivable financing, real estate loans, startup loans, business acquisition loans, and express bridge loans are all available.

business loans for startups

PROS:

  • SBA loans of up to $5 million are available.
  • Cash flow management tools are available for free.
  • 25-year terms are possible.

CONS:

  • Some lenders charge prepayment penalties

 

9. Fundera

business loans for startups

Fundera is a unique marketplace because of its vast features and online business resources. Following the submission of an online application, a loan professional will review your information, present you with the best lending options, and assist you in choosing a lender and loan package.

Fundera’s website contains sections dedicated to credit cards, banking, accounting, point-of-sale systems, HR & payroll, and legal services. Articles, recommendations, and legal guidance concerning payroll taxes, software, and bookkeeping may find in each department.

Types of loans: SB(7) loans, SB disaster loans, small business grants, lines of credit, term loans, and invoice finance are some of the options available to small businesses.

PROS:

  • The interest rate starts at 6%.
  • Loans ranging from $5,000 to $5 million
  • Application through the internet

CONS:

  • Some lenders may charge the borrower fees.

 

10. Kabbage

Because of its limited products, Kabbage, and American Express business did not make it into our main company list. That lender solely offers credit lines; however, it does provide corporate checking accounts and debit cards.

PROS:

  • There are no setup costs, yearly fees, monthly maintenance fees, or paperwork expenses.
  • You have the option of returning your loan within 24 hours for no additional fee.
  • Application through the internet

CONS:

  • Only credit lines are available.
  • Each month you have an outstanding amount, you will charge a fee.

business loans startup

 

11. Kiva

Loans fund using a method similar to GoFundMe and other similar sites, where you must wait for others to donate to your cause or business. Because receiving a loan with this unique lending platform can be slower than with more typical banks or lending organizations. It did not make our main list. The loans have a payback rate of 96 percent.

PROS:

  • Artists, small enterprises, and growing communities are all supported.
  • It’s available in 77 different countries.
  • Loans begin at $25.

CONS:

  • Individuals who fund loans using Kiva’s online platform have a longer wait time.

business loans for startups