* Loan information is presented here without warranty. Annual Percentage Rates (APRs) and other loan terms are estimates based on data provided by you and the lenders. Actual APRs will be determined by the lender and are based on your qualifications as a borrower. Only borrowers who have strong qualifications will qualify for the lowest rates. Loan offers are contingent on credit checks and approval.
Business term loan: A business term loan is a lump-sum loan, which is repaid over the course of months or years. Online lenders generally offer loans up to $300,000 to $500,000, with terms between 6 months to 5 years. Term loans are good for larger, one-time investments, such as expensive machinery or real estate. APRs vary from 5% to 98%.
SBA loans: The U.S. Small Business Administration works with banks to provide government-guaranteed term loans to small businesses. SBA 7(a) loans offer some of the most competitive rates and terms. However, only borrowers with strong qualifications will be eligible, and processing times may take several weeks. APRs on SBA loans are between 7% to 8%.
Business line of credit: A line of credit is a type of open-end loan that allows you to withdraw, repay and redraw funds repeatedly. Lines of credit are good for purchasing inventory and equipment and managing cash flow and working capital. APRs on lines of credit can range from 3% to 80% or more.
Invoice factoring: Invoice factoring allows business owners to sell their invoices due in the future at a discount for cash now. Your customers will then typically pay the factoring company instead of you. Invoice factoring is good for managing short-term cash flow gaps. APRs for invoice factoring vary between 17% and 70%.
Merchant cash advance: Merchant cash advances provide funds to business owners in exchange for a percentage of the business’s future income, usually through credit card transactions. Payments are typically made daily through a percentage of the business’s credit card sales. APRs range from 12% to 100% or more.