Learn about your options

We rank the 5 best lenders for small businesses

When looking for funds for your business you have a handful of real options.
Based on your credit, and current business sales you may qualify for either a credit based, or revenue-based lending product.

Traditional lending products such as credit cards, SBA loans, and bank loans typically base their credit decisions on your personal credit score, a score over 680 is usually good enough to get approved for credit cards and some personal loan programs.

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LENDING OPTIONS CREDIT NEEDED APPLICATION PROCESS TIME FROM APPLY TO FUNDED
Credit Cards 650+ 5 Minute Online Application A Few Days for Card to Arrive
SBA 650+ Requires Business Plan, Operating Agreements & More Up to 6 Months
Business Lines of Credit 650+ May Require Tax Returns Up to 2 Months
Revenue Based Loans 500+ Few Docs Needed Within 24 Hours
Personal Loans 650+ Fast Online Process Within 2-7 Days

Let’s go into detail on each option below:

Credit Cards

This is probably the easiest way to fund your business assuming your credit isn’t terrible, even with a score of 650 it’s possible to be approved for a card. Companies like American Express will give you big limits to start but you need to pay off the card in full at the end of each month. Other banks like Chase, Capital One and Citibank offer business credit cards that work off your personal credit but as designed for business use. We suggest you apply for a few cards at the same time, and try to get approved for multiple cards at once, as once the cards hit your credit report it could make getting a card again harder.

Score Under 650?

You can change that and get a boost of up to 49 points using Self.
This is not credit repair. Lend to yourself, report your good credit.

Learn More

SBA Loans

To qualify for an SBA loan, your business must be a for-profit, small business operating in the U.S. and in an eligible industry. Key requirements include a solid business plan, good personal credit (typically a score of 650 or higher), financial statements, and possibly collateral. You'll need to provide legal documents, personal guarantees, and tax returns. Established businesses should show financial history, while new businesses must demonstrate revenue potential. Some SBA loans also require a down payment, and requirements can vary based on the specific loan program and lender.

Business Lines of Credit

A business line of credit is a flexible financing tool that allows businesses to borrow up to a set limit, drawing from it as needed and only paying interest on the amount used. It operates like a revolving account, offering access to funds for managing cash flow, unexpected expenses, or short-term needs, with repayments typically made monthly. The credit limit is based on factors like creditworthiness and revenue, and terms can vary by lender. It offers the advantage of flexibility and renewal options, providing a versatile solution for businesses' financial needs.

Revenue Based Loans

A business line of credit is a flexible financing tool that allows businesses to borrow up to a set limit, drawing from it as needed and only paying interest on the amount used. It operates like a revolving account, offering access to funds for managing cash flow, unexpected expenses, or short-term needs, with repayments typically made monthly. The credit limit is based on factors like creditworthiness and revenue, and terms can vary by lender. It offers the advantage of flexibility and renewal options, providing a versatile solution for businesses' financial needs.

Looking for cash fast?

We rank the top 5 lenders for revenue-based loans here

Check Our List

Personal Loans

Personal loans are unsecured loans provided to individuals based on their creditworthiness, income, and financial history rather than collateral. They can be used for a variety of purposes, including debt consolidation, major purchases, or unexpected expenses. Personal loans typically have fixed or variable interest rates and are repaid in fixed monthly installments over a set period, ranging from a few months to several years. The application process generally involves a credit check and income verification, and terms can vary widely based on the lender and the borrower’s credit profile.

Other options which most likely will not work but most people will try :

Friends and Family

Just like it says, you can borrow money from friends and family for a stake in your business, if they believe in you they may be more willing to invest. The problem with this will be that it's on you to make it work, you don't want to lose your family or friend's money.

Free Government Grants

There are a lot of grants out there but many of them require you to be in a very specific market servicing a specific group of people. These are typically hard to get and small in amounts when you do get them. The time you spend trying to secure one may not be worth the amount you may get.

Win the Lottery

Like the lottery, business is a gamble but it's going to be one you can control. If you're struggling, money is most likely not the answer. You need to find paying customers, people willing to give you money. You need to buy inventory? Make a presale and find buyers to finance the product build. Opening a restaurant? Do catering first, build a name for yourself.

There is always a smaller starting point that doesn’t require what you think you need. Continue to educate yourself through the resources on this site or others you find interesting.