Businesses often rely upon loans to grow, expand or weather hard times. There are basically two types of loans, a conventional business loan and a line of credit. A conventional business loan is used for big ticket items such as machinery or startup costs. A line of credit is more for working capitol or regular expenses—it is a pre-approved loan and you borrow as you need it. No matter which type of loan your business needs, three of the best options for business loans are Lendio, Kabbage and Fundbox. Each of these lenders offers different loans, rates and perks. Read on to learn more about which of these top-rated business lenders is best for your needs.
Top 3 Business Loan Providers:
- Lendio
- Kabbage
- Fundbox
Lendio
Lendio is a free online hub for lenders and business people who want loans. You must have been in business for at least three months to get a loan through this site. They do a “soft” credit check, and once you are paired up with a lender, a more in-depth credit report will be sought. It offers many kinds of loans so you can probably find something that will fit. There are loans for as little as one month, or for many years. Interest rates vary greatly depending on the kind of loans. They also do business credit cards for up to $50,000. There is no minimum credit score required, but you must have a business bank account and no bankruptcies in the last three years.
Highlights:
- Traditional business loans, one to five years
- Loans range from $1,000 to $2 million
- No minimum credit score
Kabbage
This loan company specializes in loans for small businesses that need immediate cash. You can get approved quickly. They also make loans to businesses with bad credit. There is a $150,000 limit on loans and interest rates are a little high because of high-risk loans they make. Kabbage also makes line-of-credit loans. You must have been in business for one year and have revenue of an average of $4,200 per month. The application process is simple and takes only a few minutes. Money is deposited into your account almost immediately after approval. Once you are in the system it is easier to get future loans. Their terms are easy to understand and there are no hidden fees or surprises.
Highlights:
- Quick loans up to $150,000
- Loans to people with bad credit
- No upfront fee
Fundbox
This is a fairly new company, founded in 2012, that makes quick loans to businesses. It also lends to freelancers. It has a simple application process and makes loans up to $100,000. The whole process can be done in a single day. Most people get approved, and a low credit score does not prevent a loan from being approved. The loans are fairly short term, with 12- to 24-week terms. The borrowers’ invoices are taken into consideration, and you can pay back the loan as soon as you receive payment from others. Their process is transparent and easy to understand. It offers an unique approach in that it can automatically receive payment as people who owe you money send it to you. Interest rates are a little higher than average, but you do get the cash fast regardless of your credit history.
Highlights:
- Freelance loans available
- Loans available for low credit scores
- Higher-than-average interest rates
Conclusion
There are a lot of companies offering business loans, and it is good to shop carefully when seeking a loan. Often in business you need the money fast, so it would be a good idea to already have a company in mind when you find yourself with a need. These companies do fast loans with easy application processes. A line of credit is also a good option because that means your loan is already approved, and it only begins when you take some money out of the institution for your expenses. Businesses always need money, and these are some good companies that will make money available to you.