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Jan 14 2020

#Small loans online \ #Video

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Small loans online

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Small Business Loans

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When it comes to small business loans, it is important that you first identify what it is you need additional funding for, and how much you can afford to take out.

For example, small business loans can be a great way for businesses to buy equipment, pay employee salaries, or even maintain cash flow, but if you take out too much, you may not be able to afford repayment.

We created this small business loans guide to help you find the best small business loan for your needs.

In this guide, you will be able to compare small business lenders, use our calculator to determine your total loan amount, and find answers to frequently asked questions.

Compare Small Business Loan Options

Instantly view loan options from $2,000 to $1,000,000 using our small business loan comparison tool.

Easily select your desired loan amount, age of your business, annual revenue, and personal credit score to compare small business loan rates from companies that meet your selected criteria.

Show available options for:

Min Credit Score

at Funding Circle’s secure website

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at LendingClub’s secure website

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at OnDeck’s secure website

Estimated Interest Charge

Min Credit Score

at LoanBuilder’s secure website

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at US Business Funding’s secure website

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at Balboa Capital’s secure website

Min Credit Score

at Credibility Capital’s secure website

Min Credit Score

at Fundation’s secure website

Min Credit Score

at Kabbage’s secure website

Min Credit Score

at OnDeck’s secure website

Estimated Interest Charge

Min Credit Score

at LoanBuilder’s secure website

Min Credit Score

at US Business Funding’s secure website

Min Credit Score

at Fundbox’s secure website

Min Credit Score

at BlueVine’s secure website

Min Credit Score

at Fundation’s secure website

Min Credit Score

at Balboa Capital’s secure website

Min Credit Score

at Currency Capital’s secure website

Estimated Interest Charge

Min Credit Score

at LoanBuilder’s secure website

Min Credit Score

at US Business Funding’s secure website

Min Credit Score

at Fundbox’s secure website

Min Credit Score

at BlueVine’s secure website

Estimated Interest Charge

Min Credit Score

at LoanBuilder’s secure website

Small Business Loan Calculator

One of the best ways to figure out if a small business loan is right for you is to determine what your monthly payment will be and how much the loan will cost you over its life. Our small business loan calculator will allow you to see your monthly payments, total interest, and total loan cost based on the information you fill out below.

How much will your small business loan cost you?

Use our free calculator to determine your monthly payment, total interest, and total payment.

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Small Business Loan Lender Reviews

OnDeck is an online lender that was founded in 2007. They are based in New York City. OnDeck focusses on providing some of the best small business loans. Their loan amounts range from $5,000 to $500,000 with loan terms from 3 months to 36 months. OnDeck is a great solution for businesses who need cash quickly as they have a quick online or phone application that takes just 10 minutes to complete and you can often get a funding decision and receive the money in your bank account within 24 hours.

Some benefits of using OnDeck is that they offer both term loans, as well as lines of credit and have looser lending qualifications than a traditional lender or bank. To borrow money from OnDeck, you must personally guarantee the loan and your credit has to be between 500 and 600 – though most OnDeck borrowers have credit scores above 660. While your business needs to have at least $100,000 in annual revenue, OnDeck tends to lend to larger businesses with revenue of around $450,000 per year which have been in business for over seven years.

One of the biggest drawbacks of OnDeck is that they have high interest rates. They offer fixed interest rates that start at 8.5% and go up to 99% on their term loans and their lines of credit rates start at 14% and go up to 40% . This includes their origination fee, as well as a $20 monthly maintenance fee on lines of credit.

More specifically, there are three different possible origination fees depending on how many loans are taken out with ondeck. The first loans comes with a 2.5 to 4.0 percent origination fee. The second loan comes with a 1.25 to 3.0 percent origination fee. And the third loans may come with an origination fee ranging from 0 to 3.0 percent.

Another key drawback is that OnDeck has a more frequent repayment schedule than with other small business loans. They take money either on a daily or weekly basis from your business bank account – which might not be a good fit for your business if you have problems with cash flow. While OnDeck does not have pre-payment fees, their fee scheme means that there is little benefit to borrowers when they repay their loans early.

Kabbage is an alternative online lender that was founded in 2008 and is based in Atlanta, Georgia. They provide quick access to funding for small businesses. After filling out an easy online application that only takes a few minutes to complete, you can get between $2,000 to $150,000 in funding as soon as the same day. Kabbage offers lines of credit rather than term loans and is best for businesses that prefer a short repayment period since Kabbage only offers repayment periods of between 6 and 12 months.

Kabbage is also a great choice for those who don’t have perfect credit. They work with borrowers of all credit profiles, with no minimum FICO requirement, and use alternative underwriting criteria such as the business’ accounting, banking, and e-commerce information in order to make their lending decisions. In order to apply for their small business loans, at minimum you need to connect your business checking account, but you can also add a wide variety of other data sources like a payment platform or bookkeeping software. You can also upload information from accounts like Amazon, Etsy, eBay, QuickBooks, or Square. Kabbage takes into account things like how many years you’ve been in business and your average monthly revenue.

One of the downsides of Kabbage is that they have relatively high fee structure – they don’t use traditional ‘interest rates.’ Their fixed fees start from 7% and go to 69% APR. Also, Kabbage’s fee structure is quite complicated. Each month you have to pay back a certain percentage of the principal, as well as a portion of the loan fee. You pay the biggest chunk within the first two months of a six-month loan and within the first six months of a twelve-month loan after taking out your money from the line of credit. While Kabbage doesn’t have pre-payment fees, there is little incentive to repay your loan quickly.

Another downside of Kabbage is that they do not have longer term loans which means that Kabbage funding is not ideal for longer-term purchases.

LendingClub

LendingClub was founded in 2006 and is based in San Francisco. They are a popular peer-to-peer online lender who is better known for their personal loans than their small business loans. They connect people or businesses who are looking for loans with investors who are willing to fund their loans.

LendingClub offers two financing options for small businesses: a term loan or a line of credit. With their term loans, you can borrow anywhere from $5,000 to $300,000 at a fixed interest rate of anywhere from 10% to 35.5% . Their term lengths are anywhere from 1 to 5 years and you can get your funding within as little as two days. The borrowing amount and interest rate range for their line of credit is the same, but when you take money out of the line of credit it must be repaid in up to 25 months.

LendingClub is a better choice than some of the other online lenders because their interest rates are lower than some other options out there, but they still aren’t as low as you might get from a traditional bank if you have good credit. Their requirements are more flexible than traditional banks with a minimum credit score of 600 and a requirement that you provide collateral on loans only if you borrow over $100,000.

When they do require collateral, they put a lien on your business assets instead of your personal assets like some other lenders do. But LendingClub does require that businesses be in operation for 24 months before applying for a loan and that they have at least $75,000 in annual sales.

Additionally, Lending Club charges an origination fee ranging from 1.99 to 6.99 percent. However, there is no pre-payment fee if you repay your loan early.

Some drawbacks of LendingClub is that their rates are relatively high in comparison to banks or SBA loans. They’re also not as fast at funding loans as some other online lenders.

Funding Circle

Funding Circle was founded in 2010 and is based in San Francisco. It’s relatively unique among online lenders because it is a peer-to-peer lending platform that focuses on small businesses. They lend money by connecting investors wanting to purchase loans to qualified small businesses.

Funding Circle offers faster funding than you would get from traditional banks and slightly better terms than some other online small business lenders. Their loans take just 10 minutes to apply for online and you can get a decision within 3-5 business days and you usually receive the funding within 10 days. While their fixed interest rates are higher than traditional banks, they are lower than other alternative lenders with an APR range from 4.99% to 27.79% .

While Funding Circle doesn’t have a minimum annual revenue requirement, each lender on the platform will have different cutoffs. The average credit score of borrowers also tends to be around 700, but you need at least a score of 620 in order to qualify. The average Funding Circle borrower has been in business for around 10 years, has around 10 employees and annual revenues of over $2 million.

The average amount that Funding Circle disperses for loans is $120,000 and the average loan is for 36 months. Funding Circle provides loan amounts anywhere from $25,000 to $500,000 with terms of anywhere from 6 months to 5 years.

There are no pre-payment fees, and there is no complicated fee structure that penalizes those who repay sooner. Funding Circle charges an origination fee ranging from 0.99 to 6.99 percent. Late payment fees amount to 10 percent of the missed payment amount.

One of the downsides of Funding Circle is that it is more difficult for some small businesses to qualify for their loans since they look for small businesses that have a long track record, high annual revenues and good credit. They also require both a lien against non-titled business assets and a personal guarantee on the loan.

Fundation is an online lender that was founded in 2011 and is based in New York City. Fundation focusses on providing loans and lines of credit to established small businesses who want flexible terms. Fundation requires that you have been in business for at least one year, have at least $100,000 in revenue, and at least two other employees working for your business other than the business owner.

They also have an alternative underwriting scheme where they take a broad look at both the business and borrower before they decide whether or not to lend you money. They’re interested in knowing how you intend to use the money and ask detailed questions about your company on the application in order to get a full picture of your company’s potential.

Fundation provides loans of between $20,000 and $500,000 and lines of credit between $20,000 and $100,000, and charges fixed interest rates of between 7.99% and 29.99% . Their loan terms start at 1 year and can go as high as 4 years and it usually takes them 1 to 3 days to fund your loan if you’re approved. When you borrow money from a line of credit, you have 18 months to repay it.

There are several fees to keep in mind. Term loans come with an origination fee of up to 5.00 percent, and lines of credit are hampered by a $500 closing fee and a 2.00 percent draw fee per withdrawal.​

One benefit of Fundation is that after nine months they give you an opportunity to refinance your loan and potentially borrow more. They also offer no pre-payment penalties.

Some of the downsides of Fundation is that they are not a good fit for start-ups without employees or very small businesses. Another downside is that they ask for both a personal guarantee from borrowers and a lien on business collateral. They also require frequent loan repayments. Fundation deducts loan payments from your account twice per month, something which can negatively impact your company if you experience problems with cash flow. Line of credit payments are only deducted once per month.

Bluevine is an online lender that provides lines of credits and invoice factoring for small businesses. They were started in 2013 and are based in Redwood City, California. They offer lines of credit of up to as much as $150,000 with repayments expected over 6 to 12 months. They also offer something known as invoice factoring. Essentially, BlueVine will give you an immediate advance on your invoices so you don’t have to wait for your customers to pay you. They offer invoice factoring credit lines of up to $2.5 million and focus on invoices which are due in 90 days or less.

One benefits of their lines of credit and invoice factoring is that they don’t charge maintenance fees, unused credit fees, or pre-payment fees. Their lines of credit charge as low as 16% and you can access the funds at the click of a button online.

You can get funding within 24 hours and then draw on those funds whenever you need them. As you repay your line of credit, the available credit replenishes — allowing you to use it again.

One of the benefits of their invoice factoring process is that it syncs with your own accounting software, making borrowing seamless. The money is also available immediately unlike other invoice factoring services that distribute cash once a month. The fee for invoice factoring is generally 60% to 17.5% of the invoice and a $15 wire fee. You also don’t need to fill out a lot of paper work in order to get started and they make a decision within 24 hours.

For invoice factoring, they look for a credit score above 530 and for their lines of credit, they look for credit scores above 600.

While invoice factoring might seem like a great solution to access fast money, it charges a very high interest rate since they take 17.5% to 60% of your invoice when you borrow that money for only 90 days. Over a year, that would add up to a 40% to 60% APR. You are much better off getting a line of credit from BlueVine or another lender than using their invoice factoring. The one benefit of invoice factoring is that it does allow you to access more money than a loan.

Fundbox is an online small business lender that was founded in 2012 and is headquartered in San Francisco, California. They use alternative underwriting criteria in order to decide whether to lend to your business. Rather than requiring that you use your personal credit, they look at your business health and set your interest rate and decide how much to lend to you based on that. They offer a line of credit with a unique repayment arrangement.

Rather than pay an interest rate, you pay a weekly fee on the money that you borrow. They allow you to borrow for term lengths of between 12 weeks and 24 weeks. They charge as low as 15% over 12 week terms and 59% over 24 week terms. Once you repay part of your line of credit, that money can be borrowed again.

Fundbox’s online application is quick and easy. If you’re approved, they can transfer you funds as soon as the next business day. Fundbox also connects with your accounting software in order to more quickly approve you for a loan, making the application process much easier and allowing them to easily judge the health of your company in order to make a funding decision.

Fundbox does not charge origination, maintenance, or inactivity fees. You only pay fees on as much as you borrow. One of the benefits for Fundbox is that, unlike other lenders with unique repayment terms, they don’t frontload their fees so that repaying your loan early doesn’t make sense. Instead, they divide the fees evenly across your term length which means you can save if you pay off the money you borrowed early.

While Fundbox has some benefits like the fact that they don’t frontload their repayment fees, and the fact that they have few fees, they could be more expensive than other types of business financing you might qualify for. While their rates sound low, you have to remember that those rates are over just 12 weeks or 24 weeks, whereas the APR of other lenders is averaged over a whole year. So, that 15% fee is actually 18.64% over a year and that 59% fee is actually 19.47% over a year. Still, Fundbox might be a cheaper solution for a business owner with bad credit but a thriving business.

Credibility Capital

Credibility Capital is an online small business lender that was founded in 2013 and is based in New York City. Credibility Capital aims to work with high quality small businesses and lends in all states except Nevada, North Dakota, South Dakota, and Vermont.

They offer small business loans in the amounts of $10,000 to $350,000 and offer term lengths of 1, 2, and 3 years. Their rates start as low as 10% and go as high as 25% . They have no prepayment fees, but they do charge a 3% to 5% origination fee bringing the loan’s APR to between 10% and 25%.

They require that the businesses that they lend to have been in business for at least 18 months. They also require that the business owner has strong personal credit and hasn’t had a commercial or personal bankruptcy in the last 5 years. They prefer your credit score to be over 640 and require that you provide a personal guarantee and a lien in order to get a loan.

Applying for a Credibility Capital loan is fairly straightforward and simple. You provide them with some basic information about yourself and your business and one of their loan specialists will contact you to complete your application. You can generally get your funding in as little as a week.

While Credibility Capital offers access to more capital than many other small business lenders, it comes at a price. While their rates are reasonable, Credibility Capital charges a one-time origination fee ranging from 3 to 5 percent depending on loan size. However, there is no prepayment penalty.

If you have great credit and a strong business, you might be able to get a loan for less with another online lender. Also, if your business is newer or you don’t a have great personal credit, then you’re less likely to qualify for a loan with Credibility Capital. The fact that they do a soft credit check to pre-qualify you, however, means that you can’t lose anything by applying for a quick online quote.

StreetShares

Founded in 2013 by two veterans, StreetShares is a peer-to-peer, veteran-focused (though military affiliation is not required) small business funding service that provides capital to existing business owners.

Aside from their support for America’s heroes, one of the most attractive characteristics of StreetShares is speed, as applications can be completed quickly online, and if approved, loans are typically funded within two days. Additionally, the lender also provides a variety of products to suit the unique needs of business owners.

StreetShares has two specific lending products (three if you count contract financing): term loans and lines of credit. Term loans are available for anywhere between $2,000 and $250,000, with terms ranging from three to 36 months. The Patriot Express line of credit offers borrowers access to $5,000 to $250,000 with the same terms. Both products offer interest rates between 7% and 14%, making them some of the more affordable alternative lenders. Additionally, there are no prepayment penalties, no application fees, and no up-front fees.

StreetShares does charge an origination fee of 3.95% or 4.95%, which is added to the principal and amortized. It’s not exceptionally high—some fees can exceed 6%—but it’s also not the lowest in the market, as other peer-to-peer lenders, like Lending Club, have origination fees as low as 1.99% for qualified borrowers.

To qualify for a loan or line of credit through StreetShares, applicants must be in business for at least 12 months, have a minimum gross annual revenue of $25,000, and have a minimum FICO score that is at least in the mid to low 600s.

Since StreetShares requires that applicants be in business for two years and turn a profit, this lender is not an option for those who are in the startup phase or who have been unable to meet the revenue requirements.

Small Business Loans FAQ

How Do You Qualify for a Small Business Loan?

The qualification requirements to get a small business loan depend on the lender, but lets take a look at some common criteria.


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SOURCE: http://lendedu.com/blog/small-business-loans/

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