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The best small business loan depends on how quickly you need financing, what you plan to use it for, and your financial standing. A contractor who needs cash in a few days and a dental practice buying a building need very different types of financing.
I've spent my career helping small and midsize business owners find financing when traditional financial institutions turn them away. Below are the five best small business loans. Compare them across eligibility requirements, including cost, timeline, and credit score (including options for bad credit).
| Pick | Best for | Typical amount | Speed to financing | Minimum qualifications |
|---|---|---|---|---|
| Clarify Capital | Large amounts, fast | $10,000 to $5 million | As fast as same day | 500+ credit score, 6+ months in business, $10,000+ monthly revenue |
| SBA loans | Lowest overall cost and longest terms | Up to $5 million per 7(a) loan | Typically 30 to 90 days | Set by the lender. Through Clarify, 640+ credit score and 2+ years in business |
| Bluevine | Fastest financing | Lines up to $250,000, term loans up to $500,000 | Decisions in as fast as 24 hours | 625+ credit score, 12+ months in business, $10,000+ monthly revenue |
| Fundbox | Weaker credit | Up to $250,000 | Approval in minutes, up to 24 hours | 600+ credit score, $100,000+ annual revenue, 3+ months of business checking history |
| Ameris Bank Equipment Finance | Equipment | Up to $500,000 | Same day for approved applicants | 640+ credit score, 2+ years in business, $100,000+ annual revenue |
Common Types of Small Business Loans
Small business financing comes in many forms, and each fits a different business purpose. Before we get into the best loan options, here's a quick overview of some common types of small business financing. The small business loan providers below offer some, or all, of these.
Our guide to small business loans goes into more depth on the underwriting for each.
Short-term business loans
A short-term business loan is a lump sum with fixed repayment terms.
Equipment financing
You can use equipment financing to purchase equipment and vehicles to support your small business. The equipment secures the loan as collateral.
SBA loans
The SBA partially guarantees these loans. Borrow up to $5 million with repayment terms up to 25 years. Approval can happen as quickly as two weeks but typically takes 30 to 90 days.
Business lines of credit
A business line of credit gives you a revolving credit limit you draw against. Pay interest only on what you use.
Invoice factoring
Invoice factoring turns your accounts receivable into quick cash. You receive up to 100% of the value of the invoice.
Merchant cash advances
A merchant cash advance allows you to advance money against your future sales. These are some of the fastest options, but they're also some of the most expensive.
Minimum Qualifications
For Financing Through Clarify Capital
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
The Five Best Small Business Loans
Below, I've broken down who each pick suits, how much you can borrow, how fast funding arrives, and what to watch for before you apply.
Clarify Capital (Best for Large Amounts, Fast)
Clarify Capital is a lending marketplace that works with 75+ vetted, reputable lenders. Clarify's lender network fits small businesses that need a lot of financing, fast.
Several of the business financing options available through Clarify Capital's network fund as fast as same day and loan amounts go up to $5 million. Clarify has financed more than $1 billion across 50,000+ small and midsize businesses.
Typical financing range. Short-term business loans run from $10,000 to $5 million, with interest rates starting at 6% for well-qualified borrowers.
Speed to funding. Clarify's online application takes just two minutes to complete, with financing as fast as same day for many loans.
What to watch for. You need $10,000 and at least six months in business to qualify. Clarify doesn't finance startups.
SBA Loans (Best for Lowest Cost and Longest Terms)
Small Business Administration (SBA) loans make sense for established businesses that can wait 30 to 90 days for financing. The U.S. Small Business Administration (SBA) doesn't lend the money directly. Instead, it guarantees a portion of the loan. For small business owners, this means that SBA loans often offer competitive repayment terms and APRs.
SBA loans can't exceed a base rate, such as prime, plus 3% to 6.5% depending on the loan size. Terms can stretch to 25 years for real estate. Clarify Capital can match you to an SBA loan too.
Typical financing range. The typical SBA loan amount is capped at $5 million. For eligible borrowers, SBA-backed financing may be used for both 7(a) and 504 loans with a total maximum of $10 million.
Speed to funding. SBA loans typically take 30 to 90 days to fund, but I've seen it happen as quickly as two weeks.
What to watch for. Expect to provide tax returns, financial statements, and bank statements. Some SBA loans require collateral.
Bluevine (Best for Fast Financing)
Bluevine fits corporations and LLCs with steady monthly revenue that need funding quickly. They offer a business line of credit and partner with lenders to offer term loans.
Typical financing range. Credit lines go up to $250,000 and term loans top out at $500,000.
Speed to funding. Decisions can land as quickly as 24 hours after applying.
What to watch for. You need a 625+ personal credit score to qualify for a line of credit or small business loan through Bluevine. You'll also need at least $10,000 in monthly revenue, so it doesn't fit startups.
Fundbox (Best for Weaker Credit)
Fundbox works for newer businesses with fair credit. You need $100,000 in revenue to qualify and at least three months of banking history. Small business owners can qualify with a credit score of 600+.
Typical financing range. Fundbox offers lines of credit and term loans up to $250,000.
Speed to funding. Approval can happen within minutes but takes up to 24 hours.
What to watch for. Each draw has to be paid back in 12 or 24 weeks. Fundbox takes a withdrawal from your account weekly.
Ameris Bank Equipment Finance (Best for Equipment)
Ameris Bank Equipment Finance, a division of Ameris Bank, suits small business owners who need equipment financing. Ameris provides financing to established businesses for the purchase of vehicles, machinery, technology, and software.
Typical financing range. Equipment financing with Ameris Bank Equipment Finance goes up to $500,000.
Speed to funding. One-hour decisions are offered during regular business hours. Once you're approved, financing lands as fast as same day.
What to watch for. You'll be required to sign a personal guarantee. You need a credit score of 640 to qualify, so it may not fit those with bad credit.
Narrowing Down Your Choices
In my experience, borrowers tend to focus on the eligibility requirements they need to qualify. They don't spend as much time thinking about what they need the money to do.
Here's what I recommend asking yourself before you apply for financing:
How much do I need? This affects your choice of lender. You can borrow up to $5 million through Clarify Capital. In some cases, SBA loans can be combined to $10 million.
When do I need it? There are several options if you need a same-day business loan. SBA loans take the longest, but if you can wait, you may be able to secure a better rate.
Why am I borrowing the funds? Ask yourself: Do I need this money for a one-time cost like a business expansion? Or will I need it for recurring working capital expenses, like payroll and inventory? The answer will tell you what type of financing to lean on.
How long do I want to borrow the funds? A shorter repayment period usually means higher monthly payments but less total interest paid.
Get Same-Day Financing With Clarify Capital
At Clarify Capital, you'll work with a U.S.-based lending advisor, never a call center or a chatbot, who can compare offers across 7+ financing options.
Three out of four businesses we finance return to us for more financing. Compare our full lineup of business financing and apply today to see what you qualify for. Checking your options won't affect your credit score.
Step 1:Apply online
It takes about two minutes. You'll need your business's legal name, EIN, time in business, monthly revenue, requested loan amount, owner contact information, and a credit authorization.
Step 2:Connect with a lending advisor
A U.S.-based Clarify Capital lending advisor reviews the application, runs a soft credit pull (no impact to your score), and requests 3 to 4 months of recent business bank statements.
Step 3:Get matched and funded
Clarify Capital works with 75+ vetted lenders and matches your profile with the right financing. Approvals often get a same-day offer (SBA loans can take longer).
Frequently Asked Questions About Small Business Loans
Still have questions about small business loan options? Here are straight answers to the most common ones.
What Is the Easiest Business Loan To Get?
It depends on your financial profile. Financing tied to your receivables, like merchant cash advances or invoice factoring, tends to have more flexible credit score requirements. At Clarify Capital, to qualify for a merchant cash advance, you need a credit score of 500. Invoice factoring is based on your customer's credit history.
Can an LLC Get a Small Business Loan?
Yes. An LLC can get a small business loan. Lenders will review your business credit score, personal credit profile, and your cash flow. You may still have to sign a personal guarantee, even if you apply through your business, which means you're liable if the business doesn't pay.
How Do You Qualify for a Small Business Loan?
Requirements vary by lender and loan type. The comparison table above shows you how five common loan options compare across eligibility requirements.
Do Small Business Loans Require Collateral?
It depends on the loan. Short-term business loans through Clarify don't require collateral, while equipment financing uses the equipment itself as security.
Can I Use a Small Business Loan To Refinance Existing Debt?
Often, yes. Check with your lender before you apply. SBA 7(a) loans can be used to refinance current business debt. 504 loans can also be used to refinance qualified debt. SBA Microloans can't be used to refinance debt.
How Much Can I Borrow With a Small Business Loan?
Borrowing limits vary widely. At Clarify Capital, you can borrow up to $5 million.
Is My Information Safe When I Apply?
Yes. Clarify follows SOC 2 security principles to protect the business and personal details you share when you apply. Here's more on how we protect your data.
Bryan Gerson
Co-founder, Clarify
Bryan has personally arranged over $900 million in funding for businesses across trucking, restaurants, retail, construction, and healthcare. Since graduating from the University of Arizona in 2011, Bryan has spent his entire career in alternative finance, helping business owners secure capital when traditional banks turn them away. He specializes in bad credit funding, no doc lending, invoice factoring, and working capital solutions. More about the Clarify team →
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