- Valid as of April 30, 2025
Best Business Loans of April 2025
Find funding that fits your business
Explore the top lenders in the market and find the best financing options for your business growth with competitive rates and flexible terms.
- 9.5
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- ✓ Loan Amount: $25K - $2M
- ✓ Time in Business: 18+ months
- ✓ Average Monthly Revenue: At least $15,000
- ✓ Minimum Credit Score: 600
- ✓ Loan Amount: $15K - $5M
- ✓ Time in Business: 12+ months
- ✓ Average Monthly Revenue: At least $12,000
- ✓ Minimum Credit Score: 580
- ✓ Loan Amount: $5K - $2M
- ✓ Time in Business: 6+ months
- ✓ Average Monthly Revenue: At least $20,000
- ✓ Minimum Credit Score: 550
- ✓ Loan Amount: $5K - $500K
- ✓ Time in Business: 6+ months
- ✓ Average Monthly Revenue: At least $20,000
- ✓ Minimum Credit Score: 600
- ✓ Loan Amount: $5K - $5M
- ✓ Time in Business: 6+ months
- ✓ Average Monthly Revenue: At least $15,000
- ✓ Minimum Credit Score: 500
- ✓ Loan Amount: $2K - $250K
- ✓ Have started your business at least a year ago**
- ✓ Average monthly revenue of at least $3,000*
- ✓ Minimum FICO score of at least 660* at the time of application
- ✓ Loan Amount: $5K - $1M
- ✓ Time in Business: 12+ months
- ✓ Average Monthly Revenue: At least $19,000
- ✓ Minimum Credit Score: 500
- ✓ Loan Amount: $5K - $3M
- ✓ Time in Business: All
- ✓ Average Monthly Revenue: At least $10,000
- ✓ Minimum Credit Score: 600
- ✓ Loan Amount: $5K - $500K
- ✓ Time in Business: 6+ months
- ✓ Average Monthly Revenue: At least $20,000
- ✓ Minimum Credit Score: 600
- ✓ Loan Amount: $5K - $1M
- ✓ Time in Business: 1+ years
- ✓ Average Monthly Revenue: At least $20,000
- ✓ No Minimum Credit Score
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Explore the best online business checking account
- ✓ Banking built for the self-employed
- ✓ Real-time expense tracking and categorization
- ✓ Banking, taxes, bookkeeping – all in one place
- ✓ No minimum balance or overdraft fees
Top Ranked Choice
- ✓ Loan Amount: $25K - $2M
- ✓ Time in Business: 18+ months
- ✓ Average Monthly Revenue: At least $15,000
- ✓ Minimum Credit Score: 600
Is It Easy to Get a Business Loan?
Getting a business loan can be challenging, especially if you haven’t been open very long. Fortunately, services that provide quotes from multiple lenders make it easier to get funding for your company than ever before.
You can try these tips if it’s been tough for you to find an affordable business loan:
- Build your personal credit score. You’ll need to show a strong history of paying bills on time. You can also boost your score by using no more than 30% of your available credit. In other words, if you have a personal credit card with a $5,000 limit, try not to carry a balance of more than $1,500 from month to month.
- Make sure you can afford to repay a business loan by looking at cash flow. For this calculation, divide your operating income after expenses by the total debt you take on each year for your business. Ideally, you should aim for a cash flow ratio of more than 1, which means you make more money than you spent paying off debt. Most banks want to see at least 1.35 for business loan approval.
- Develop a comprehensive business plan. If you can’t show a detailed document with full financial projections, lenders may question whether the company has a solid foundation.
- Expand your search. If you’ve only looked at one or two types of loans, you may want to consider additional forms of business funding.
What Types of Business Loans Are Available?
The best business loan for your needs varies based on factors like the type of business, the amount you want to borrow, and why you need the money. Exploring multiple loan types increases your chances of a successful application.
Loans in each of the common categories below may be secured or unsecured. Secured loans are covered by collateral like equipment or a vehicle. If you don’t repay the loan, the bank can seize the property that secures the loan. Unsecured loans don’t require collateral, so they often have stricter approval guidelines.
SBA loans
Funding from the U.S. Small Business Association is a smart choice if you have average credit or below. Guaranteed government repayment means it’s easier for small businesses to qualify for funding through the SBA than through other channels.
The three main SBA loan types include:
- Microloans of up to to $50,000 for equipment, supplies, inventory and/or working capital
- 504 loans of up to $5 million for real estate, equipment, or upgrades that increase the value of property you already own
- 7(a) loans of up to $5 million to buy another company, obtain working capital, or otherwise grow your business
SBA loans have an estimated APR of 3% to 13% and terms of up to 25 years. They’re often the most cost-effective way to get small business funding if you have bad credit, but approval can be slow.
Traditional Bank Loans
Term loans from traditional lenders like banks and credit unions usually have a fixed interest rate of around 9%, so it’s an affordable option if you can meet the relatively strict approval requirements. Most applicants need to provide collateral or a personal guarantee, and you’ll need a credit score of at least 680. Your monthly payments will stay the same for the life of the loan, typically about 10 years.
Business Line of Credit
This type of business loan is similar to a personal credit card. Your company has an open line of credit up to a certain amount. You can make purchases until you reach that limit, making monthly payments toward the principal each month along with interest. Business credit lines usually have interest rates ranging from 7% to 25%.
Accounts Receivable Loans
If you have outstanding invoices, you can get this type of secured business loan. Accounts receivable loans are good for businesses with bad credit since they use your company’s invoices as collateral. Designed to help you pay for short-term expenses and debts, these loans carry an interest rate of anywhere from 10% to 60%.
Merchant Cash Advance
If your business has bad credit but strong sales, you might want to consider a merchant cash advance. Rather than checking your credit rating, this loan lets you borrow a percentage of your future credit card transactions. However, you’ll need to pay a steep interest rate ranging from 40% to 150%.
Equipment and Construction Loans
Your company can use these secured loans specifically for equipment or real estate renovation. For an equipment loan, the equipment acts as collateral. In the case of a construction loan, the property itself counts as the collateral. Equipment and construction loans typically have interest rates around 4% to 40%.
Short-Term Loans
Short-term business financing could also work if you don’t have the best credit. These loans last about three years and top out at about $500,000, but you can borrow much less.
Online lenders usually offer short-term loans and you can even receive the funds within a few days if you qualify. While you might be eligible for an APR of around 8%, some lenders charge sky-high rates of up to 99%. You should also keep an eye out for expensive fees.
What Are the Most Important Requirements for Business Loans?
Lenders consider several factors for approval, but the most important requirements are:
- A good credit score, generally defined as at least 690. However, some online lenders specialize in funding for business owners with bad credit.
- Minimum revenue, often from $50,000 up to $250,000 or even higher depending on the lender. If your company doesn’t make that much yet, you could potentially get a microloan from the SBA or a business credit card.
- Length of time in business. Most traditional banks require at least two years of operation before approval, but you can try for an online small business loan just one year after you open.
How Do I Apply for a Business Loan?
The application process varies for different types of business loans. In general, however, you’ll need to submit the following information to your lender:
- A business plan that describes the purpose of your company and explains how you plan to use the money you borrow
- Resumes for your executives
- Certificates, licenses, and permits for your business
- A history of the company’s cash flow and future revenue projections
- Bank statements from both your personal and business accounts
- Personal and business credit reports, or permission for the lender to run a report for you
- Two to three years of business tax returns
- Three to five years of revenue records
- Current legal contracts, including partnership and franchise agreements
- Current profit and loss statements
What Types of Business Loans Are Available?
APR (annual percentage rate) is the total cost of your business loan each year. It combines all the payments, fees, and charges stated in your loan contract. While APR is important, it’s not the only thing that matters when selecting a business loan. By getting quotes from multiple lenders, you can compare APR alongside factors like lender reputation and repayment terms.
American Express National Bank Disclosure**
**All businesses are unique and are subject to approval and review.
American Express® Business Line of Credit offers two loan types, installment loans and single repayment loans for eligible borrowers. All loan term types, loan term lengths, and pricing are subject to eligibility requirements, application, and final approval. This [content / article] contains general information about the American Express® Business Line of Credit installment loan type only.
American Express® Business Line of Credit offers access to a commercial line of credit ranging from $2,000 to $250,000; however, you may be eligible for a larger line of credit based on our evaluation of your business. Each draw on the line of credit will result in either a separate installment loan or a single repayment loan. All loans are subject to credit approval and are secured by business assets. Every loan requires a personal guarantee. For single repayment loans, we charge a total loan fee that ranges from 0.95%-1.80% of the amount you borrow for 1-month loans, 1.90%-3.75% for 2-month loans, and 2.85%-6.05% for 3- month loans. Single repayment loans incur a loan fee at origination and the principal and total loan fee are due and payable at loan maturity. There are no required monthly repayments for a single repayment loan. Repaying a single repayment loan early will not reduce the loan fee we charge you. For installment loans, we charge a total loan fee that ranges from 3-9% of the amount you borrow for 6-month loans, 6-18% for 12-month loans, 9-27% for 18-month loans, and 12-18% for 24-month loans. Installment loans incur a portion of the total loan fee for each month you have an outstanding balance. If you repay the total of the principal of an installment loan early, you will not be required to pay loan fees that have not posted for subsequent months. For each loan that you take, you will see the applicable loan fee before you take the loan. Once you take the loan, the loan fees that apply to that loan do not change. We reserve the right to change the loan fees that we offer you for new loans at any time. American Express reserves the right to offer promotions to reduce or waive loan fees from time to time. Not all customers will be eligible for the lowest loan fee. Not all loan term lengths are available to all customers. Eligibility is based on creditworthiness and other factors. Not all industries are eligible for American Express® Business Line of Credit. Pricing and line of credit decisions are based on the overall financial profile of you and your business, including history with American Express and other financial institutions, credit history, and other factors. Lines of credit are subject to periodic review and may change or be suspended, accompanied with or without an account closure. Late fees may be assessed.
The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
Loans are issued by American Express National Bank.
Biz2Credit Disclosure:
Applies to the Biz2Credit Term Loan. Not reflective of rates for all products. Full Terms & Conditions available at biz2credit.com.
*See website for average amounts by product.
