In the past, there was a limited loan option for people who really need auto, business, mortgage, or personal loans. However, it is now easy to access such loans. Now, there are even options for you to apply for loans from the comfort of your home. Whether you need a loan for a personal purpose for your business, there’s numerous options and once you go online, you will be spoilt for options.
There is no need to fill out numerous forms that are synonymous with traditional lenders. You can go online, apply for the loan and have the cash in your bank account in a few days. Business loans are no exceptions, although you may need to go visit the lender in person at some point when you’re dealing with some lenders.
Best options for online loans
Since there are lots of options online, we do not want you to be confused about which lenders to work with when you want to apply for online loans. We have done comprehensive research and compiled a list of the best lenders in the industry. These lenders offer loans with better repayment terms compared to other lenders. When you want an online loan for your business, there’s three common options: term loans, invoice factoring, and lines of credit.
- Credibility Capital offers term loans that span for 18 months or more. You will need to have a credit score of at least 650, and an annual revenue of $150,000. You can get loans that range from $10,000 to $350,000 at APRs that range from 10% to 25%.
- If you need a loan to finance the purchase of equipment, you can opt for an equipment financing loan from Currency. The lenders will check your personal credit, the required minimum score is 585, and you must running the business for 6 months. You should also have an annual revenue of $75,000 or more. They grant loan amounts that vary from $5,000 to $2 million with APRs that range from 6% to 24%.
- LendingClub offers loans for business owners. Borrowers can get up to $300,000. The good thing about this lender is that borrowers with excellent credit scores can access loans at low interest rates. You should have a credit score of 600. You should be running the business for a year and have an annual revenue of at least $50,000. This lender can grant you a loan between $5,000 and $300,000 and an APR that ranges between 9.8% to 35.7%.
- Funding Circle also grants business loans for established businesses and franchises. The lender expects you to have a credit score of 620, and you should running the business for 2 years. If you have a low annual revenue, you can apply for this loan since lenders do not have an annual revenue requirement. You can get between $25,000 and $500,000 if you apply for this loan. the APR ranges from 7.4% to 36%.
Lines of Credit
You can also apply for a line of credit from lenders who offer this service. With a business line of credit, the lender allows you to access a pool of funds. You can draw from this line of credit at any time. The good thing about this option is that the APR will be charged only on the amount you borrow. The following lenders offer you business lines of credit for an agreed term.
There are two options for borrowers. You can either opt for the 6-month term or the 12-month term. This lender can offer you a six- month line of credit with an APR that is from 15% to 78%. Your annual revenue should be a minimum of $120,000 and you should be running the business for 6 months. You can acquire up to $250,000 business line of credit. There is also the 12-month line of credit that allows the borrower to access up to $250,000. Your credit should be 620 or more. With this option, you should be running the business for 2 years, and you should have an annual revenue of $450,000 or more. The APR on this business line of credit is 15% to 78%.
- Kabbage also offers a business line of credit for businesses that have been running for one year and they have revenue each year of $50,000. There is no credit score requirement and you can acquire a minimum loan amount of $2,000 and a maximum of $250,000 at an APR of 24% to 99%.
- OnDeck is another good one that offers a business owners business line of credit up to $100,000. You should have revenue each year of $100,000 and a credit score of 600. You should also be running the business for one year.
Invoice factoring is another form of funding for business owners. This method is quick and business owners can get funds in no time. You can qualify for this loan if you have unpaid invoices from customers. The lenders will give you a loan using the invoices as collateral.
- BlueVine will grant you a loan against your outstanding invoices even if you have a poor credit score. This lender looks at your credit score; you should have a minimum of 530 and should be running the business for 3 months. You should also have revenue each year of $100,000.
- StreetShares expects you to have a minimum credit score of 540 and you should also be running the business for one year. The invoices will be factored at an APR of 1% to 5.5%.
- Another lender that is worth mentioning is FundBox. You do not need a minimum credit score or minimum revenue to apply. However, they expect you to have an accounting software that can work with their current system. They can offer up to $100,000 at an APR of 10.1% to 78.6%.