Quick Comparison: Small Business Loan Providers

June 5, 2024

Navigating the landscape of small business loans can be a daunting task, given the variety of providers and loan options available. Each provider offers unique benefits, terms, and requirements that can significantly impact your business’s financial health. Whether you’re looking for a traditional bank loan, exploring options with online lenders, or considering alternative financing sources, understanding these differences is crucial.

Below is a comprehensive comparison of different small business loan providers, detailing their loan products, amounts, interest rates, repayment terms, eligibility requirements, and more to help you make an informed decision.

LOANSB: Loan Provider Summary

Provider Type	Loan Products Offered	Loan Amounts ($)	Interest Rates	Repayment Terms	Eligibility Requirements	Funding Speed	Fees and Charges	Customer Service and Support
Traditional Banks	Term Loans, Lines of Credit, SBA Loans, Equipment Financing, Commercial Real Estate Loans	$5,000 – $5,000,000	Fixed: 4% – 12%, Variable: Prime + 1% to 5%	1 to 25 years	Minimum 680 credit score, $100,000 annual revenue, 2 years in business	1 to 3 weeks	Origination Fees: 1% – 3%, Prepayment Penalties: May apply, Late Fees: Vary	In-person, online, and phone support; relationship managers
Credit Unions	Term Loans, Lines of Credit, SBA Loans, Equipment Financing, Commercial Real Estate Loans	$5,000 – $500,000	Fixed: 4% – 10%, Variable: Prime + 1% to 4%	1 to 20 years	Minimum 660 credit score, $50,000 annual revenue, 1 year in business	1 to 2 weeks	Origination Fees: 0% – 2%, Prepayment Penalties: Rare, Late Fees: Vary	Personalized, member-focused service; in-person, online, and phone support
SBA Lenders	SBA 7(a) Loans, SBA 504 Loans, SBA Microloans, SBA Disaster Loans	$5,000 – $5,000,000	Fixed: 5% – 10%, Variable: Prime + 1% to 4%	5 to 25 years	Minimum 680 credit score, varies by loan product	2 to 4 weeks	Origination Fees: 0% – 3.5%, Prepayment Penalties: None, Late Fees: Vary	Dedicated SBA loan specialists; in-person, online, and phone support
Online Lenders	Term Loans, Lines of Credit, Invoice Financing, Merchant Cash Advances, Equipment Financing	$5,000 – $500,000	Fixed: 8% – 40%, Variable: Prime + 3% to 10%	3 months to 5 years	Minimum 600 credit score, $50,000 annual revenue, 6 months to 1 year in business	1 to 3 days	Origination Fees: 1% – 5%, Prepayment Penalties: May apply, Late Fees: Vary	Online and phone support; fast response times
Peer-to-Peer (P2P) Lenders	Term Loans, Lines of Credit	$2,000 – $500,000	Fixed: 6% – 35%	1 to 7 years	Minimum 600 credit score, $50,000 annual revenue, 1 year in business	1 to 2 weeks	Origination Fees: 1% – 5%, Prepayment Penalties: Rare, Late Fees: Vary	Online and phone support; community-based support
Microloan Providers	Microloans	$500 – $50,000	Fixed: 8% – 15%	6 months to 6 years	Flexible, often lower credit scores accepted	1 to 2 weeks	Origination Fees: 1% – 5%, Prepayment Penalties: Rare, Late Fees: Vary	Personalized service; business development resources and mentoring
Community Development Financial Institutions (CDFIs)	Term Loans, Microloans, Lines of Credit, Equipment Financing	$500 – $500,000	Fixed: 6% – 15%	6 months to 10 years	Flexible, often lower credit scores accepted	2 to 3 weeks	Origination Fees: 1% – 3%, Prepayment Penalties: Rare, Late Fees: Vary	Personalized service; business development resources and mentoring
Merchant Cash Advance Providers	Merchant Cash Advances	$5,000 – $500,000	Factor rate 1.1 – 1.5	3 to 18 months	Flexible, $5,000 monthly credit card sales, 3 months in business	24 to 48 hours	Origination Fees: 2% – 5%, included in factor rate, Late Fees: Vary	Online and phone support; fast response times
Alternative Lenders	Term Loans, Lines of Credit, Invoice Financing, Equipment Financing, Merchant Cash Advances	$5,000 – $2,000,000	Fixed: 10% – 40%, Variable: Prime + 3% to 15%	3 months to 7 years	Minimum 600 credit score, $100,000 annual revenue, 1 year in business	1 to 3 days	Origination Fees: 1% – 5%, Prepayment Penalties: May apply, Late Fees: Vary	Online and phone support; fast response times
Trade Credit Providers	Trade Credit	Varies by supplier, typically $1,000 – $100,000	Interest-free if paid within terms	30 to 90 days	Varies by supplier and relationship	Immediate access to goods or services	Late Fees: Vary, often a percentage of the overdue amount	Relationship-based support through account managers
Fintech Companies	Term Loans, Lines of Credit, Invoice Financing, Merchant Cash Advances, Equipment Financing	$5,000 – $2,000,000	Fixed: 8% – 35%, Variable: Prime + 3% to 10%	3 months to 7 years	Minimum 600 credit score, $100,000 annual revenue, 1 year in business	1 to 3 days	Origination Fees: 1% – 5%, Prepayment Penalties: May apply, Late Fees: Vary	Online and phone support; innovative platforms
Angel Investors and Venture Capitalists	Equity Financing, Convertible Debt	Angel Investors: $10,000 – $1,000,000, Venture Capitalists: $1,000,000 – $100,000,000	Not applicable (equity financing or convertible debt)	Not applicable (equity stake or convertible debt terms)	Not typically considered, high-growth potential businesses	1 to 3 months	Legal and administrative fees; equity dilution	Mentorship and strategic guidance; access to investor networks
Government Programs	Government Grants, Low-Interest Loans, Subsidized Loans, Tax Credits	$5,000 – $5,000,000	Fixed: 0% – 5%, Variable: Typically lower than market rates	1 to 25 years	Flexible, often lower than private lenders	1 to 3 months	Application Fees: May apply, Origination Fees: Often minimal, Late Fees: Vary	Support through government agencies; online resources
Family and Friends	Informal Loans, Equity Financing	$1,000 – $100,000	Varies, often below market rates or interest-free	Flexible, based on mutual agreement	Not typically considered, based on personal relationships	Immediate to a few weeks	Origination Fees: None, Prepayment Penalties: None, Late Fees: Can be agreed upon	Personal and informal support; high level of flexibility

Traditional Banks

Provider Type: Traditional Bank

Loan Products Offered:

Term Loans
Lines of Credit
SBA Loans
Equipment Financing
Commercial Real Estate Loans

Loan Amounts:

Typically range from $5,000 to $5,000,000, depending on the loan product

Interest Rates:

Fixed: 4% – 12%
Variable: Prime rate plus a margin (typically 1% to 5%)

Repayment Terms:

Short-term: 1 to 5 years
Long-term: Up to 25 years
Early repayment may be allowed but can include penalties

Eligibility Requirements:

Credit Score: Minimum 680, higher scores preferred
Business Revenue: Varies by loan product, typically at least $100,000 annually
Time in Business: Minimum of 2 years

Application Process:

Steps: Submit detailed application, provide financial statements, tax returns, business plan
Documentation: Business and personal credit reports, bank statements, financial projections
Approval Time: 1 to 3 months

Funding Speed:

After approval, funds are typically available within 1 to 3 weeks

Fees and Charges:

Origination Fees: 1% – 3% of the loan amount
Prepayment Penalties: May apply
Late Fees: Vary by loan product

Customer Service and Support:

In-person support at branches
Online and phone support available
Relationship managers often assigned to business accounts

Credit Unions

Provider Type: Credit Union

Loan Products Offered:

Term Loans
Lines of Credit
SBA Loans
Equipment Financing
Commercial Real Estate Loans

Loan Amounts:

Typically range from $5,000 to $500,000, depending on the loan product

Interest Rates:

Fixed: 4% – 10%
Variable: Prime rate plus a margin (typically 1% to 4%)

Repayment Terms:

Short-term: 1 to 5 years
Long-term: Up to 20 years
Early repayment often allowed without penalties

Eligibility Requirements:

Credit Score: Minimum 660, higher scores preferred
Business Revenue: Varies by loan product, typically at least $50,000 annually
Time in Business: Minimum of 1 year

Application Process:

Steps: Submit application, provide financial statements, tax returns, business plan
Documentation: Business and personal credit reports, bank statements, financial projections
Approval Time: 2 weeks to 2 months

Funding Speed:

After approval, funds are typically available within 1 to 2 weeks

Fees and Charges:

Origination Fees: 0% – 2% of the loan amount
Prepayment Penalties: Rarely apply
Late Fees: Vary by loan product

Customer Service and Support:

Personalized service and member-focused support
In-person support at branches
Online and phone support available

SBA Lenders

Provider Type: SBA Lender (Banks, Credit Unions, and other SBA-approved lenders)

Loan Products Offered:

SBA 7(a) Loans
SBA 504 Loans
SBA Microloans
SBA Disaster Loans

Loan Amounts:

SBA 7(a): Up to $5,000,000
SBA 504: Typically $125,000 to $20,000,000
SBA Microloans: Up to $50,000
SBA Disaster Loans: Varies based on needs

Interest Rates:

Fixed: 5% – 10%
Variable: Prime rate plus a margin (typically 1% to 4%)

Repayment Terms:

SBA 7(a): Up to 25 years
SBA 504: Up to 25 years
SBA Microloans: Up to 6 years
SBA Disaster Loans: Up to 30 years

Eligibility Requirements:

Credit Score: Minimum 680, higher scores preferred
Business Revenue: Varies by loan product
Time in Business: Minimum of 2 years, but startups can also qualify with strong personal credit and a solid business plan

Application Process:

Steps: Submit detailed application, provide financial statements, tax returns, business plan, SBA-specific forms
Documentation: Business and personal credit reports, bank statements, financial projections, collateral documentation
Approval Time: 1 to 3 months

Funding Speed:

After approval, funds are typically available within 2 to 4 weeks

Fees and Charges:

Origination Fees: 0% – 3.5% of the loan amount
Prepayment Penalties: None for most SBA loans
Late Fees: Vary by lender

Customer Service and Support:

Dedicated SBA loan specialists
In-person support at branches
Online and phone support available

Online Lenders

Provider Type: Online Lender

Loan Products Offered:

Term Loans
Lines of Credit
Invoice Financing
Merchant Cash Advances
Equipment Financing

Loan Amounts:

Typically range from $5,000 to $500,000, depending on the loan product

Interest Rates:

Fixed: 8% – 40%
Variable: Prime rate plus a margin (typically 3% to 10%)

Repayment Terms:

Short-term: 3 months to 3 years
Long-term: Up to 5 years
Early repayment often allowed, but can include penalties

Eligibility Requirements:

Credit Score: Minimum 600, higher scores preferred
Business Revenue: Varies by loan product, typically at least $50,000 annually
Time in Business: Minimum of 6 months to 1 year

Application Process:

Steps: Submit online application, provide financial statements, business plan, personal financial information
Documentation: Business and personal credit reports, bank statements, tax returns
Approval Time: 24 hours to 1 week

Funding Speed:

After approval, funds are typically available within 1 to 3 days

Fees and Charges:

Origination Fees: 1% – 5% of the loan amount
Prepayment Penalties: May apply
Late Fees: Vary by lender

Customer Service and Support:

Online and phone support available
Fast response times
Limited in-person support

Peer-to-Peer (P2P) Lenders

Provider Type: Peer-to-Peer (P2P) Lender

Loan Products Offered:

Term Loans
Lines of Credit

Loan Amounts:

Typically range from $2,000 to $500,000, depending on the loan product

Interest Rates:

Fixed: 6% – 35%
Variable: Less common, usually fixed rates

Repayment Terms:

Short-term: 1 to 5 years
Long-term: Up to 7 years
Early repayment often allowed without penalties

Eligibility Requirements:

Credit Score: Minimum 600, higher scores preferred
Business Revenue: Varies by loan product, typically at least $50,000 annually
Time in Business: Minimum of 1 year

Application Process:

Steps: Submit online application, provide financial statements, business plan, personal financial information
Documentation: Business and personal credit reports, bank statements, tax returns
Approval Time: 1 to 2 weeks

Funding Speed:

After approval, funds are typically available within 1 to 2 weeks

Fees and Charges:

Origination Fees: 1% – 5% of the loan amount
Prepayment Penalties: Rarely apply
Late Fees: Vary by lender

Customer Service and Support:

Online and phone support available
Limited in-person support
Community-based support through P2P platforms

Microloan Providers

Provider Type: Microloan Provider (Nonprofits, Community Lenders)

Loan Products Offered:

Microloans

Loan Amounts:

Typically range from $500 to $50,000

Interest Rates:

Fixed: 8% – 15%
Variable: Less common, usually fixed rates

Repayment Terms:

Short to Medium-term: 6 months to 6 years
Early repayment often allowed without penalties

Eligibility Requirements:

Credit Score: Flexible, often accommodating lower scores
Business Revenue: Varies, typically suited for smaller businesses or startups
Time in Business: Can be as little as a few months

Application Process:

Steps: Submit application, provide basic financial information and business plan
Documentation: Business and personal credit reports, bank statements, business plan
Approval Time: 1 to 4 weeks

Funding Speed:

After approval, funds are typically available within 1 to 2 weeks

Fees and Charges:

Origination Fees: 1% – 5% of the loan amount
Prepayment Penalties: Rarely applied
Late Fees: Vary by lender

Customer Service and Support:

Personalized service and community-focused support
Often includes business development resources and mentoring
In-person support available through local offices

Community Development Financial Institutions (CDFIs)

Provider Type: Community Development Financial Institution (CDFI)

Loan Products Offered:

Term Loans
Microloans
Lines of Credit
Equipment Financing

Loan Amounts:

Typically range from $500 to $500,000

Interest Rates:

Fixed: 6% – 15%
Variable: Less common, usually fixed rates

Repayment Terms:

Short to Medium-term: 6 months to 10 years
Early repayment often allowed without penalties

Eligibility Requirements:

Credit Score: Flexible, often accommodating lower scores
Business Revenue: Varies, typically suited for smaller businesses or startups
Time in Business: Can be as little as a few months

Application Process:

Steps: Submit application, provide basic financial information and business plan
Documentation: Business and personal credit reports, bank statements, business plan
Approval Time: 2 to 6 weeks

Funding Speed:

After approval, funds are typically available within 2 to 3 weeks

Fees and Charges:

Origination Fees: 1% – 3% of the loan amount
Prepayment Penalties: Rarely applied
Late Fees: Vary by lender

Customer Service and Support:

Personalized service and community-focused support
Often includes business development resources and mentoring
In-person support available through local offices

Merchant Cash Advance Providers

Provider Type: Merchant Cash Advance Provider

Loan Products Offered:

Merchant Cash Advances

Loan Amounts:

Typically range from $5,000 to $500,000

Interest Rates:

Factor rates: 1.1 to 1.5 (e.g., for a $10,000 advance, you repay $11,000 to $15,000)

Repayment Terms:

Short-term: 3 to 18 months
Repayment is made through a percentage of daily credit card sales or fixed daily/weekly withdrawals

Eligibility Requirements:

Credit Score: Flexible, often no minimum required
Business Revenue: Steady monthly credit card sales, typically at least $5,000 per month
Time in Business: Minimum of 3 months to 1 year

Application Process:

Steps: Submit application, provide proof of credit card sales and bank statements
Documentation: Minimal, usually just bank and credit card processing statements
Approval Time: 1 to 3 days

Funding Speed:

Once approved, funds are typically available within 24 to 48 hours

Fees and Charges:

Origination Fees: 2% – 5% of the advance amount
Service Fees: Included in the factor rate
Late Fees: Vary by lender, often included in the factor rate

Customer Service and Support:

Online and phone support available
Fast response times
Limited in-person support

Alternative Lenders

Provider Type: Alternative Lender

Loan Products Offered:

Term Loans
Lines of Credit
Invoice Financing
Equipment Financing
Merchant Cash Advances

Loan Amounts:

Typically range from $5,000 to $2,000,000, depending on the loan product

Interest Rates:

Fixed: 10% – 40%
Variable: Prime rate plus a margin (typically 3% to 15%)

Repayment Terms:

Short-term: 3 months to 5 years
Long-term: Up to 7 years
Early repayment often allowed, but can include penalties

Eligibility Requirements:

Credit Score: Minimum 600, higher scores preferred
Business Revenue: Varies by loan product, typically at least $100,000 annually
Time in Business: Minimum of 1 year

Application Process:

Steps: Submit online application, provide financial statements, business plan, personal financial information
Documentation: Business and personal credit reports, bank statements, tax returns
Approval Time: 1 to 2 weeks

Funding Speed:

After approval, funds are typically available within 1 to 3 days

Fees and Charges:

Origination Fees: 1% – 5% of the loan amount
Prepayment Penalties: May apply
Late Fees: Vary by lender

Customer Service and Support:

Online and phone support available
Fast response times
Limited in-person support

Trade Credit Providers

Provider Type: Trade Credit Provider

Loan Products Offered:

Trade Credit

Loan Amounts:

Varies by supplier and business relationship, typically $1,000 to $100,000

Interest Rates:

Typically interest-free if paid within terms
Late payments may incur interest or penalties

Repayment Terms:

Short-term: 30 to 90 days, depending on supplier terms
Early repayment often incentivized with discounts

Eligibility Requirements:

Credit Score: Varies, often based on business creditworthiness and relationship with the supplier
Business Revenue: Varies, but generally at least $50,000 annually
Time in Business: Usually at least 1 year, but new businesses may qualify with strong personal credit or a solid business plan

Application Process:

Steps: Negotiate terms with suppliers, provide credit references and financial information
Documentation: Business and personal credit reports, bank statements, trade references
Approval Time: 1 week to 1 month, depending on supplier and relationship

Funding Speed:

Immediate access to goods or services upon approval, payment terms allow for delayed payment

Fees and Charges:

Late Fees: Vary by supplier, often a percentage of the overdue amount
Interest: May be charged on overdue balances
Early Payment Discounts: Often 1% – 2% discount for paying early

Customer Service and Support:

Typically handled by the supplier
Relationship-based support, often through account managers
Limited formal customer service infrastructure

Fintech Companies

Provider Type: Fintech Company

Loan Products Offered:

Term Loans
Lines of Credit
Invoice Financing
Merchant Cash Advances
Equipment Financing

Loan Amounts:

Typically range from $5,000 to $2,000,000, depending on the loan product

Interest Rates:

Fixed: 8% – 35%
Variable: Prime rate plus a margin (typically 3% to 10%)

Repayment Terms:

Short-term: 3 months to 5 years
Long-term: Up to 7 years
Early repayment often allowed, but can include penalties

Eligibility Requirements:

Credit Score: Minimum 600, higher scores preferred
Business Revenue: Varies by loan product, typically at least $100,000 annually
Time in Business: Minimum of 1 year

Application Process:

Steps: Submit online application, provide financial statements, business plan, personal financial information
Documentation: Business and personal credit reports, bank statements, tax returns
Approval Time: 24 hours to 1 week

Funding Speed:

After approval, funds are typically available within 1 to 3 days

Fees and Charges:

Origination Fees: 1% – 5% of the loan amount
Prepayment Penalties: May apply
Late Fees: Vary by lender

Customer Service and Support:

Online and phone support available
Fast response times
Innovative platforms with user-friendly interfaces

Angel Investors and Venture Capitalists

Provider Type: Angel Investors and Venture Capitalists

Loan Products Offered:

Equity Financing
Convertible Debt

Loan Amounts:

Angel Investors: Typically $10,000 to $1,000,000
Venture Capitalists: Typically $1,000,000 to $100,000,000

Interest Rates:

Not applicable, as funding is provided in exchange for equity or convertible debt

Repayment Terms:

Not applicable, as funds are not repaid like traditional loans
Equity stake or convertible debt terms are negotiated as part of the investment

Eligibility Requirements:

Credit Score: Not typically considered
Business Revenue: Varies, often high-growth potential businesses
Time in Business: Startups and early-stage companies are common recipients

Application Process:

Steps: Submit pitch deck, business plan, financial projections, participate in pitches and meetings
Documentation: Business plan, financial statements, market analysis
Approval Time: 1 to 6 months, depending on due diligence process

Funding Speed:

After approval, funds are typically available within 1 to 3 months

Fees and Charges:

Legal and administrative fees associated with closing the investment
Equity dilution based on the percentage of the company exchanged for funding

Customer Service and Support:

Mentorship and strategic guidance from investors
Access to investor networks and additional resources
High level of involvement in business growth and strategy

Government Programs

Provider Type: Government Programs

Loan Products Offered:

Government Grants
Low-Interest Loans
Subsidized Loans
Tax Credits

Loan Amounts:

Varies widely depending on the program, typically from $5,000 to $5,000,000

Interest Rates:

Fixed: Typically lower than market rates, often 0% – 5%
Variable: Varies, but generally lower than market rates

Repayment Terms:

Short-term: 1 to 5 years
Long-term: Up to 25 years
Early repayment often allowed without penalties

Eligibility Requirements:

Credit Score: Flexible, often lower than private lenders
Business Revenue: Varies by program
Time in Business: Can vary, some programs support startups and new businesses

Application Process:

Steps: Submit application through government agency, provide financial statements, business plan, and other documentation
Documentation: Business and personal credit reports, tax returns, business plan
Approval Time: 1 to 6 months, depending on the program

Funding Speed:

After approval, funds are typically available within 1 to 3 months

Fees and Charges:

Application Fees: May apply, depending on the program
Origination Fees: Often minimal or none
Late Fees: Vary by program

Customer Service and Support:

Support through government agencies and associated partners
Online resources and assistance available
In-person support through local offices or agencies

Family and Friends

Provider Type: Family and Friends

Loan Products Offered:

Informal Loans
Equity Financing

Loan Amounts:

Typically ranges from $1,000 to $100,000, depending on the relationship and agreement

Interest Rates:

Fixed: Varies, often below market rates or interest-free
Variable: Can be agreed upon mutually

Repayment Terms:

Flexible: Can range from short-term to long-term, based on mutual agreement
Early repayment typically allowed without penalties

Eligibility Requirements:

Credit Score: Not typically considered
Business Revenue: Flexible, based on personal relationships
Time in Business: Often suitable for startups and new ventures

Application Process:

Steps: Informal discussions and agreements, possibly drafting a written agreement
Documentation: Minimal, often based on mutual trust and understanding
Approval Time: Immediate to a few weeks

Funding Speed:

After agreement, funds are typically available immediately or within a few days

Fees and Charges:

Origination Fees: None
Prepayment Penalties: None
Late Fees: Can be agreed upon mutually

Customer Service and Support:

Personal and informal support
High level of flexibility and understanding
Potential for personal relationship complexities

Choosing the right loan provider for your business is a critical decision that can influence your financial stability and growth potential. By carefully considering the options and understanding the specific offerings of each provider, you can secure the financing that best meets your needs. Remember, it’s always beneficial to consult with a financial advisor to tailor the best strategy for your business’s unique circumstances. With the right information and guidance, you can confidently navigate the financial landscape and set your business on a path to success.

LOAN SB

Please contact us if you have any feedback or questions.