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The 5 Best Small Business Loans Available in the USA

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Last editedJan 20212 min read

Whether you’re trying to get your startup off the ground, expand into a new market or territory you need one thing – money. But with the best will in the world, having the liquidity to make your dreams a reality is a huge challenge for most businesses. So, what do you do when the perfect business premises comes on the market, a new piece of machinery is going at a bargain price, or you want to add a new member of your team but don’t have the funds to pay for them?

A small business loan can propel your business to greatness. But it can also become a yoke around your neck. Your rates and terms will make all the difference. They will allow you the ready capital you need to get off the ground or take it to the next level, without putting a stranglehold on your cash flow. Here are a handful of the best loans for small businesses available in the US in 2021.

Best for SBA loans: Fundera

A common challenge for new businesses is securing funding when they haven’t yet had the chance to build up a credit score. Small Business Administration (SBA) loans help nascent small businesses to obtain the credit they need by supplementing loans from commercial lenders with government guarantees. The lender administers the loan while the SBA protects the lender against default by repaying up to 85% of losses.

Fundera offers a great selection of business loans and lines of credit including SBA loans. They also allow you to compare multiple loan options in one place, and find out whether or not you’ll qualify without impacting your credit score.

Best for poor credit: BlueVine

New small business owners can be very apprehensive about debt. But debt is not a dirty word. Indeed, well-managed debt is a necessity for businesses of all shapes and sizes. Nonetheless, managing that debt is a skill, and many businesses learn by trial and error. Unfortunately, your learning curve can be damaging to your credit score.

Since it was established in 2013, BlueVine has delivered more than $9 billion in financing to more than 200,000 business customers. They have a Better Business Bureau rating of A+ and a generous minimum FICO score of 530.

Best for microloans: Kiva

If you only need to borrow a small amount, the last thing you need is to shackle your business to loans with sky-high interest rates. Unfortunately, many inexperienced small business owners find themselves doing exactly that when they take out small business loans from the wrong lenders.

Kiva offers small business microloans of up to $15,000 with 0% interest. So you can make the capital investments you need without worrying about the impact of high interest rates on your cash flow.

Best for quick disbursement: TD Bank

Speaking of cash flow, getting paid quickly can enable you to take advantage of great offers on capital investments before your competitors snap them up. Unfortunately, however, some creditors are faster than others.

TD Bank can open up lines of credit within 48 hours. So a lack of liquidity won’t mean that golden opportunities pass you by.

Best all-rounder: Kabbage

Finally, if you’re looking for a great all-round lender, you could do much worse than Kabbage. Kabbage is a tech company that helps businesses of all shapes and sizes with cash flow. They have a huge amount of flexible lending options. And because you only borrow what you need, you don’t have to worry about excess borrowing driving up interest repayments over time. You can also get prequalified online without a hard inquiry on your credit report, and approval for a loan takes just a few minutes.

We can help

If you’re interested in finding out more about small business loans, funding your growth, or any aspect of your business finances, then get in touch with our financial experts. Find out how GoCardless can help you with ad hoc payments or recurring payments.