Straight answers to the questions small business owners ask most before comparing business loans: what it actually takes to qualify for a small business loan, how rates and fees really work, and what happens after you apply. If you are trying to compare business loans without wasting a week on applications, start here.
The basics of what this small business loan comparison site is, who is behind it, and what it costs you to use it.
Compare Business Loans Online is an independent marketplace that lists SBA lenders, banks, and online funders side by side so a small business owner can see real rates, loan amounts, and requirements before applying anywhere. Instead of filling out separate applications with several lenders just to compare offers, you can review published terms on our best business lenders page first and apply directly with whichever one actually fits.
No. This site does not issue loans, hold your application, or make underwriting decisions. It is a comparison and referral platform. When you click through to a lender, you are applying directly with that lender, and any loan agreement is between you and them, not with this site.
No, comparing small business loans here is free. This site is compensated by some of the lenders it features when a business applies or funds through a link, similar to how a mortgage or credit card comparison site works. That arrangement does not change how lenders are ranked, and it never adds a fee to your loan.
Lenders are evaluated on published rates, loan amount ranges, minimum credit score, funding speed, and verified customer feedback. Rankings are based on that independent research, not on which lender pays the highest referral fee, and a lender's placement can change as its terms or reviews change.
Yes, this site maintains a dedicated small business loan guide for all 50 states plus the District of Columbia, since minimum credit requirements, state registration steps, and even which lenders operate locally can vary. Search for your state by name, for example small business loans in Texas or small business loans in California, to see the lenders and terms that actually apply where you do business.
The terms get thrown around interchangeably, but each small business loan type is built for a different situation.
This site covers SBA 7(a) and 504 loans, business term loans, business lines of credit, merchant cash advances, equipment financing, and working capital loans. Each business loan type has its own typical rate range, funding speed, and use case, which is why each loan type page breaks down what it is actually built for rather than treating them as interchangeable.
No. A business loan is underwritten against your business's revenue, time in business, and often business credit, while a personal loan is underwritten against your individual income and personal credit alone. Using a business loan instead of a personal loan also keeps that debt off your personal credit report in most cases and can help build a separate credit profile for the business itself.
Revenue based products like a merchant cash advance or a short term working capital loan tend to have the easiest approval since they weigh bank deposits more heavily than credit score. That accessibility comes at a cost, though, since these are usually the most expensive business loan products on this site, so an easy approval is not always the cheapest one.
A term loan gives you a lump sum upfront that you repay on a fixed schedule, which suits a one time purchase like equipment or an expansion. A line of credit gives you a revolving limit you can draw from and repay repeatedly, which works better for uneven cash flow, like a seasonal business covering payroll between busy stretches.
Technically, no. A merchant cash advance is a sale of a portion of your future revenue in exchange for upfront cash, priced with a factor rate rather than an interest rate. It is popular with card heavy businesses like restaurants and retailers because approval leans on deposit history rather than credit score, but it is usually the most expensive way to access capital, so it is worth comparing against a term loan or line of credit first.
SBA 7(a) and 504 loans carry the lowest rates on this site, but they also come with the most paperwork and the longest timeline, often two to six weeks. They tend to make the most sense for an established business with strong credit financing something large and planned in advance, like real estate or a business acquisition, rather than an urgent cash flow gap.
Often, yes, and the restrictions depend on the product. Equipment financing is tied to the specific equipment being purchased, and an SBA loan usually has to match the purpose stated in your application, such as real estate or working capital. General term loans and lines of credit tend to be the most flexible, so if you are not sure yet exactly how you will spend the funds, ask a lender directly before applying rather than assuming any product covers any expense.
Credit score, time in business, and revenue requirements vary more by lender type than by anything else.
It depends entirely on the lender type. Fast online funders on this network work with scores as low as 500, mid tier term lenders generally want 620 or higher, and SBA lenders and banks typically look for 650 to 680 or better. There is no single minimum across the industry, which is exactly why comparing lender types matters before you apply.
Yes, several lenders on this network accept scores as low as 500, particularly for merchant cash advances and revenue based working capital loans that lean on monthly deposits rather than credit history. A bad credit business loan will typically carry a higher rate or factor rate than a bank or SBA product, so it is worth treating it as a bridge while you build credit rather than a long term financing plan.
Across this network, APRs on business loans typically range from about 6.2 percent to 36 percent, with SBA and bank loans at the low end and merchant cash advances or unsecured working capital products at the high end. Your actual rate depends on credit score, time in business, revenue, and whether the loan is secured, which is why comparing real offers matters more than any published average.
Some lenders on this network will consider a business with as little as three to six months of operating history, particularly revenue based funders that weigh bank deposits more heavily than time in business. A business with no revenue history yet has a much narrower set of options, generally startup specific financing rather than standard term loans or SBA products.
Not always. Many term loans and lines of credit on this network are unsecured, backed instead by a personal guarantee and a general lien on business assets. Equipment financing and larger SBA loans are more likely to require specific collateral, whether that is the equipment itself or, for larger real estate deals, the property being financed.
Most lenders on this network let you see prequalified terms through a soft credit check, which does not affect your score. A hard inquiry that can briefly lower your score only happens once you move forward with a formal application at a specific lender, so browsing and comparing offers here carries no credit risk on its own.
Loan sizes across this network run from a few thousand dollars up to several million, and where you land depends far more on monthly revenue, time in business, and collateral than on the industry you are in. A business with steady deposits typically qualifies for more than a newer, lower revenue applicant, regardless of loan type.
Pricing comes down to risk: credit score, time in business, monthly revenue, and whether the loan is secured all factor in, and a lender usually cannot quote an exact rate until they have reviewed your file. A revenue based product like a merchant cash advance uses a factor rate instead of an APR, which prices the cost differently, so always ask a lender to translate their offer into an APR equivalent before comparing it against a term loan.
Not automatically, though it narrows your options. Banks and SBA lenders generally want to see a bankruptcy discharged for several years with a clean payment history since, while revenue based online funders on this network tend to weigh current cash flow more heavily than a credit event from years ago. Being upfront about it with a lender early tends to go better than having it surface during underwriting.
For an established business with bank statements and tax returns to show, usually not. For a startup with no revenue history, most SBA lenders and banks will ask for a business plan with financial projections, while some fast online funders skip it in favor of the owner's personal credit and any available deposit history.
The mechanics of applying, how fast money actually shows up, and what to do if a lender says no.
Clicking through from this site takes you to that lender's own application, which typically asks for basic business details, a few months of bank statements, and sometimes tax returns. From there you are dealing directly with the lender through funding, not with this site, so questions about your specific application should go to them.
Fast online funders can approve and fund a straightforward application the same day. Bank term loans usually take a few business days once documentation is complete, and SBA loans, even through a Preferred Lender, generally run two to six weeks depending on loan size and complexity.
Most lenders want your last three to four months of business bank statements, a government issued ID, and basic details like your EIN and time in business. SBA and bank lenders typically ask for more, including tax returns and financial statements, so having those ready before you apply speeds up underwriting considerably.
A decline from one lender does not rule out others, since underwriting standards vary widely across this network. It is worth asking the lender why you were declined, since a specific reason like time in business or revenue can point you toward a different product, such as a revenue based option instead of a bank term loan.
Many lenders on this network charge an origination fee, typically a percentage of the loan amount deducted before funds are disbursed, and SBA loans carry their own guarantee fee on top of that. These costs are not always obvious from the headline rate, so ask each lender for the total cost of the loan, not just the interest rate or factor rate, before comparing offers.
It depends on the lender and product, so this is worth confirming before you sign. Many term loans and lines of credit on this network carry no prepayment penalty and some even discount the remaining cost for paying early, while certain SBA loans include a prepayment penalty during the first few years if paid off ahead of schedule.
Most banks and SBA lenders report payment history to the major business credit bureaus, which can help build a credit profile for your business over time, while some short term online funders do not. If building business credit matters to you, ask a lender directly whether they report before you commit, since it is not always stated upfront.
What happens to your information when you compare lenders, and how this site is funded.
Browsing and comparing lenders on this site does not require submitting sensitive financial documents to us directly. Once you click through to apply with a specific lender, that lender's own privacy policy and security practices govern how your information is handled, so it is worth reviewing those before submitting an application.
Compare Business Loans Online may receive compensation from some of the lenders featured when a business applies or funds through a link on this site. That relationship does not change how a lender is ranked here, and it is disclosed on every page for transparency rather than buried in fine print.
Yes. Rankings and reviews are based on independent research into each lender's published rates, requirements, and terms, along with verified customer feedback, not on how much a lender pays for placement. Rates, terms, and lender availability can change, so always confirm current details directly with a lender before applying.
The interest portion of a business loan payment is generally tax deductible as a business expense, while the principal you repay is not, since that is simply returning borrowed money. This site is not a tax advisor, so confirm the details with a CPA or tax professional based on your specific loan structure and business entity.