Best Online Term Loans for Small Business
Expansion of small businesses could be a decision for your business and deciding where to get the small business loan from could be just as an essential part of your choice. The best part is that you have options apart from the traditional banks available in the market currently that can offer you loans with favorable interest rates.
We have a list of some of the business financing product options for you that are currently available in the financial market. You can choose the one that suits your requirements and provide you the ease of repayment.
Estimated APR: 10-35.5%
Minimum Credit Score: 600
In March 2014, the largest peer-to-peer lending platform of the nation started offering small business loans to the businessmen, which is different from their main product. However, there is a qualification criterion that you must clear to be eligible for the business loan being provided by Lending Club. This includes:
- Your business should at least be 12 months old
- Your annual sale should be a minimum of $50,000
- You should own at least 20% of your business shares
- There should not be any recent bankruptcies declared or tax liens
- You should have a fair personal credit score
- You must not be a resident of West Virginia or Lowa
Here are some quick highlights of the Lending Club Loan:
- If you qualify for the application of loan, then you can apply for any amount of $5,000 to $300,000.
- You have the option to pay it back under very flexible terms of your choice between one to five years. However, apart from the interest rate which is fixed within 5.99% to 29.99%, there are some certain costs that you will have to incur.
- You will be charged an origination fee of 1.99% to 8.99%.
- There is a processing fee of $7 on each cheque payment.
- A late payment will have a fine of 5% of the unpaid amount of $15, whichever is higher.
- It can take up to 2 weeks for the loan amount to be transferred in your account.
Loan Amount Range: $30,000 to $350,000 (for Working Capital loans)
Repayment Terms: Up to 25 years
APR Range: 6.36–9.57%
Minimum Credit Requirements: 675+ credit score
Minimum Business Period: Two years or more in business
SmartBiz is a technological platform that will connect you to one of the three traditional lending partners who will offer you the SBA loans. The best part is that it lets you compare among the lenders at a glance so that you can go for the best option that you will qualify for and the one that provides you with maximum benefits. In return, it charges 4% as a service charge which is quite nominal when compared with other such platforms.
Though there isn’t any specific minimum credit score requirement mentioned by SmartBiz. However, there are certain eligibility criteria like:
- The borrower should have “good” personal credit score to apply for the loan.
- Your business should have adequate and positive cash flow with $50,000 to $5 million as your annual revenue
- The business should have an employee strength ranging from one to 40.
You should note that depending on the amount of loan that you get approved for, bank releases your loan amount in a short period as seven days or it could take as long as four to six weeks.
Estimated APR: 8.5% to 99%
Minimum Credit Requirement: 500
The most attractive factor about OnDeck is that you can get a loan amount of up to $500,000 with minimal paperwork requirement within one day. However, to enjoy the ease of getting the loan with such ease and in such a short period, you should be willing to pay a higher interest rate and serve a shorter payment term, that is, up to two years only.
OnDeck offers two types of loans for businesses with minimum one year of operational period and a minimum gross annual revenue of at least $100,000. The two types of OnDeck loans for small business are:
- Short term loans
- Long term loans
Some quick highlights of OnDeck Loan are:
- You can apply for short term loans at an interest rate as low as 9%.
- The loan term is of 3 to 12 months.
- Long term loans are available for a time of 15 to 36 months at an annual interest rate as low as 9.99%.
- The line of credit is available at quite nominal APR of 13.99% for a maximum amount of $100,000.
If yours is a relatively new business or you are looking for a loan option that would provide you the amount on the same day, then you should consider the OnDeck as your option. However, keep in mind the repayment period and APR before you go for it.