Have you tried to get a business loan and suffered rejection – perhaps many times?
If so, you’re not alone. Banks often reject up to 80% of all small business loan applications.
What’s a small business owner to do? Whether it’s an e-commerce venture or a brick-and-mortar store, many are turning to online business loans to secure the financing they need.
With so many options available, how do you know which is best for you (and your business)? In this post, we’ll reveal 10 reputable lenders to consider for business loans online.
1. Lending Tree
If you’re not sure what type of loan you need (or where to begin the process), Lending Tree is a good place to start.
As one of the leading online marketplaces for business loans, it offers business owners a huge network of potential lenders to choose from. One simple application will get you matched to a selection of lenders ready to make you an offer.
Among their offerings are SBA loans, term loans, equipment financing, capital loans, and business credit cards.
2. Rapid Advance
Another online lender that’s been around for a while is Rapid Advance. The company enjoys an A+ rating from the Better Business Bureau and stellar reviews for their customer service.
Rapid Advance offers short-term loans (up to 18 months) from $5,000 up to $1 million. To qualify, your business has to be at least two years old and generate over $5,000 in revenue each month.
As the name suggests, Rapid Advance can get you qualified and funded in as little as three days.
Formerly Retail Capital, Credibly has set itself apart in the online loan world by offering very reasonable interest rates.
Business owners can apply for loans up to $250,000 with repayment terms anywhere from 6 to 24 months. Interest rates vary from 9.9% to 36%.
Credibly offers the option of making weekly or even daily repayments on the loan amount. Applicants can receive funding in as little as 48 hours.
4. Bonsai Finance
If your business or personal credit score is less than stellar, you might have difficulty securing the financing you need.
Enter Bonsai Finance, who specialize in bad credit installment loans. In many cases, all you need to qualify is a US bank account and adequate income to manage the repayments.
As an example, you could qualify for a loan of $15,000 with a low APR of only 5.49%. This is an excellent choice if you need money in a hurry and your credit score prevents you from getting other types of loans.
An added bonus? Every month, when you repay your loan on time, your credit score will improve. It’s a win-win situation.
5. National Funding
If you need a fairly modest business loan (less than $100,000), National Funding could be a good option. Their options range from short-term loans and equipment financing to merchant cash advances.
They offer short-term loans from 4 to 24 months with options of daily or weekly repayments. Equipment financing of up to $150,000 is available with repayments terms from two to five years.
National Funding is highly rated for their speed too. Most applicants can receive funding in 24 hours or less.
6. Currency Capital
For equipment financing at reasonable rates, check out Currency Capital.
You can apply for anywhere from $5,000 up to $2 million in financing. APRs range from 6% to 24% depending on your credit (you’ll need at a credit score of at least 585 to qualify).
The lender also requires that your business is in operation for at least 6 months and generating a minimum of $75,000 in annual revenue.
7. Lending Club
If you need longer repayment terms but still want reasonable interest rates, you might consider Lending Club.
To qualify, your business needs to generate at least $50,000 in annual revenue and be at least a year old. Loan amounts can go as high as $300,000 with payback terms up to 60 months.
Interest rates are modest, coming in between 9.77% and 35.71%. They move a little slower than other online lenders, taking an average of seven days to finance a loan.
8. On Deck
It’s hard to beat a BBB A+ rating and average customer review rating of 9.8. But the lenders at On Deck manage to achieve both.
For customers with fair (or better) credit scores, On Deck offers both short-term and long-term loans of up to 36 months. Repayments are made daily or weekly.
On Deck also supplies businesses with unsecured lines of credit up to $100,000. Most customers receive their funding within 24 hours.
9. Blue Vine
If a line of credit or invoice factoring would work better for your business than a traditional loan, Blue Vine Capital is an excellent option.
This is a great choice for newer business owners seeking more flexibility with their financing. You can make weekly payments on a loan amount from $5,000 up to $5 million. Interest rates start around 6.9%.
For invoices due in less than 13 weeks, you can also secure 85-90% advance rates on up to $5 million in invoices. This allows you to only pay for financing if (and when) you need it.
If your business is new and your personal credit is poor, you might wonder if you’ll ever qualify for financing.
Sound like your situation? Check out Kabbage, an online lender that specializes in helping new businesses get off the ground. To qualify, you need to show $4,200 in revenue for the last three months.
Kabbage can help you with loan amounts from $5,000 up to $250,000. If your credit is poor, though, be prepared to pay a lot in interest (up to 99%).
Still, if you’ve exhausted other options and your credit score keeps getting in the way, Kabbage can help.
Final Thoughts on Online Business Loans
So, which of these options for online business loans is right for you?
Take the time to do some research before you make a final decision. Your future–and the future of your small business–depend on it!
Once you secure the financing you need, your next step is to create a killer website for your business. Click here for expert advice on how to write a blog that will drive your business forward.