A small business loan can help you start a business, keep up with day-to-day expenses, and grow to new levels of success. But securing a loan can be a challenging prospect, with banks that may not want to assume the risk of lending to a business without a steady cash flow, and smaller lenders who may want to take you on with lots of terms and conditions and skyrocketing interest rates.
For tips on how to secure a small business loan from a traditional bank or credit union, refer to the Hello Alice Secure a Bank Loan Guide. In the meantime, check out these great lending options you might not have considered.
The 7(a) loan program is the Small Business Administration’s primary program for providing financial assistance to small businesses. The standard loan provides a maximum of $5 million, and the small loan up to $350,000. There are a few different configurations, and the terms and conditions vary by type of loan.
Kabbage provides funding directly to small businesses through an entirely automated lending platform. Small businesses can apply and qualify and access a line of credit up to $150,000 in less than ten minute, without stepping inside a bank. However, with interest rates at the higher end of the spectrum (24.00-99.00%), it may be a better option for lenders with a low personal credit score.
Kiva is a nonprofit organization that offers short-term business loans of up to $10,000 with repayment terms between three to 36 months. Something that sets it apart is that, similar to crowdfunding, individuals, not financial institutions, actually provide the loan funds.
Credibly is a lender of working capital loans, business expansion loans, merchant cash advances, business lines of credit, SBA loans, and more for small and medium sized businesses.
Through Funding Circle, you can apply for term loans made specifically for small businesses from $5,000 to $500,000 with one six-minute application. You can also apply for lines of credit, cash advances and even SBA loans.
BlueVine offers term loans anywhere from $5,000–$250,000, invoice factoring and lines of credit to eligible small businesses, and is a good option for business owners seeking short-term funding who don’t qualify for bank loans due to personal credit history.
Noble Funding is an online lender that offers a few different types of working capital for larger businesses with a higher annual revenue seeking at least $50,000–$100,000. This is a better option for businesses on the outs from the “small business” status.
Biz2Credit provides direct funding to small businesses that have been in business at least for six months. Amounts vary on the size of the business, but start around $10,000.
With Torro, you can apply for a startup capital of up to $125,000. If you’re already in business, you can apply for up to $575,000 for business expansion, working capital, emergency cash, and more.
10. CDFI Loan
Community Development Financial Institutions (CDFIs) provide financing to individuals through credit unions, banks, loan funds, and venture capital funds operating within the mission of serving low-income communities. Use the locator linked above to find your local CDFI.
Learn more about how you can successfully secure a bank loan through the Hello Alice Secure a Bank Loan Guide.