5 Best Small Business Loans Banks Don’t Want You to Find
Small businesses are the backbone of the economy. They create jobs, drive innovation, and support local communities. Yet, too often, small business owners can’t get the funding they need from banks to grow and thrive. This can be frustrating for entrepreneurs who are eager to get their businesses off the ground or expand into new markets. But don’t despair!
There are a number of loan options available that can help you get the funding you need. In this blog post, we’ll discuss some of the best non-bank business loans that can help hopeful entrepreneurs succeed.
Why Many Small Businesses Have Trouble Getting Bank Loans
Growing ventures often have trouble getting approved for bank loans because they are considered high-risk. Banks are interested in funding small business owners who exhibit a strong personal credit score and a track record of years of successful operations. It’s not easy to meet those standards, which means many will struggle to obtain the capital they need.
So what’s an entrepreneur to do? Luckily, there are a number of alternative lenders who specialize in providing business loans. Let’s take a look at some of the best non-bank capital options available.
5 Best Small Business Loans
Loans are an important part of the success of many small ventures. However, for numerous budding entrepreneurs, getting approved for a loan by traditional lenders is almost impossible. Here are five of the best business loans that small businesses can turn to.
1. LendThrive
LendThrive is a small business funding company that specializes in providing loans ranging from $25,000 to $150,000. The firm works with individuals and small business owners who are eager to purchase equipment and supplies, meet payables, or expand their operations but struggle to get approved for bank loans.
LendThrive offers fixed rate loan options that suit the needs of almost any type of business.
If the borrower makes on-time payments, the interest rate can decrease incrementally. This translates to extra cash that may be used to make other payments, hire new staff, or keep the business operational during seasonal downtimes. Regardless of the industry you are in, you can count on LendThrive to provide the best business loans.
Apply for a small business loan today.
2. LoanBuilder
LoanBuilder is a PayPal service that provides short-term loans to small businesses. Its borrower qualifications and credit score requirements are lower compared to banks. It also bills itself as a fast and easy direct lending service that requires borrowers to have a personal credit score of at least 620, an operating duration of nine months, and minimum of $42,000 in annual business revenue.
Loan amounts range from $5,000 to $500,000, and term lengths can go from 13 to 52 weeks. LoanBuilder charges a one-time fixed borrowing fee of between 2.9% and 18.72% of the amount borrowed. It does not charge an origination fee.
3. OnDeck
OnDeck is an online small business lender specializing in short-term loans between $5,000 and $250,000 to owners with thin credit histories and low credit scores. The company has a wide network of investors who provide the funds needed to cover requests from qualified applicants.
To qualify, borrowers should be in business for at least two years, have a personal credit score of 600, and have $250,000 or higher in annual income. OnDeck offers up to $250,000 in term loans (maximum 24 months) and as much as $1,000,000 in lines of credit (maximum 12 months).
4. LendingClub
LendingClub is a lending firm that offers small business loans between $5,000 and $500,000, which may be used for inventory and equipment purchases, acquiring a location, remodeling and repairs, marketing, and even debt refinancing.
The company’s business loans are provided through Accion Opportunity Fund’s lender network. Borrowers pay fixed amounts monthly in terms of one to five years, with no prepayment penalties.
To qualify, the borrower should own at least 20% of the U.S.-based venture and the business should have at least $50,000 in annual sales and operating for 12 months or more. For businesses with a thin credit history, you may apply for a personal loan and borrow $1,000 to $40,000 within three to five years.
5. Kabbage
Kabbage offers several types of secured and unsecured loans for small business owners, including short-term business loans, working capital loans, business lines of credit, equipment loans, and inventory loans. It caters to a wide range of industries and also offers specialized borrowing programs for veterans and female business owners.
Amounts can go as high as $150,000. Applications can be done via the phone or the computer within minutes, and financing decisions are made in real-time. To qualify, businesses must be operating for at least 12 months and have a valid business checking account.
Ready To Explore Non-Bank Loans For Your Small Business?
LendThrive is a trusted lending agency with a solid track record of business success, which is why it is one of the best small business loan providers outside of banks.
Regardless of the industry you are in, you can count on the LendThrive team to help you get the funds you need to grow. We have helped many ventures in the veterinary, brewery, e-commerce, commercial, personal care, retail, construction, and pet industries — plus many more. You only need to apply in minutes to get instant pre-approval, and you can get the money you need as fast as 24 hours.
Contact LendThrive today to learn more about your small business loan options, or apply directly so you can finally take that important step in moving your venture forward.
