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Getting a $10,000 business loan can be easier than larger amounts, since you pose less risk to the lender. But you might want to steer clear of big banks and look to less-conventional lenders for funding of this size.
Where can I get a $10,000 business loan?
You can get a $10,000 business loan with most types of lenders. However, big banks might not be the best option — these typically fund larger amounts and might not even offer loans of this size. Even some online lenders have funding minimums above $10,000.
Online lenders, microlenders and community development financial institutions (CDFIs) are likely a better bet. Borrowing online might be a particularly good choice if you don’t have a lot of time or resources to spend on your business loan application.
However, if you need $10,000 in startup financing, an online personal loan might be a better choice. Almost all personal loan providers offer loans of that size, and they don’t have minimum revenue or time in business cutoffs. Online lenders like Upstart can get you a loan as soon as the same day you apply. But you’ll need good credit and enough income support repayments to qualify.
Compare $10,000 business loans
Narrow down top business loans by loan amount, rates and requirements to find the best option for your business’s goals. Select Compare for up to four products to weigh their benefits side by side.
Although each lender has its own process, these steps should help guide your business toward the right loan option:
Compare lenders. Start by comparing business loan lenders. Research lenders that offer competitive terms for small business loans.
Prepare financial documents. Lenders want to see your business plan and accurate and up-to-date annual revenue projections, bank statements, tax documents and other information that demonstrates your business’s ability to repay a loan.
Apply for preapproval. This lets you see your loan’s potential terms before your personal or business credit is officially checked. Not all lenders offer preapproval, but if it’s available, take advantage of it.
Review and sign the loan contract. Review your loan contract with your partners and financial advisor to ensure the terms benefit your business.
How much will a $10,000 business loan cost?
How much your $10,000 business loan costs depends on a few factors: the loan term, interest rate and fees.
Typically, $10,000 business loans come with APRs on the lower end since they’re less of a risk to the lender. However, the specific rate you receive depends on your business’s finances and your personal credit score. You can expect to qualify for loan terms on the shorter end — typically from six months to several years.
Let’s take a look at an example …
Cornflower Media Co. needed to cover overhead costs for a film shoot coming up in the next month, but it didn’t have the cash to afford the cost up front. The owner compared her options and narrowed it down to two lenders: OnDeck and LendingClub.
She prequalified with both and compared the results:
Lender
APR
Term
Turnaround time
Monthly repayment
Total cost
OnDeck
15%
1 year
Next business day
$902.58
$831
LendingClub
12%
1 year
A few business days
$888.49
$661.85
After weighing both options, she decided that OnDeck was a better choice. While it cost more, it had a faster turnaround time to get her the funds. And the longer she waited, the more expensive the overhead costs would get.
5 types of $10,000 business loans
From traditional term loans to lines of credit and merchant cash advances, here are five types of financing available in amounts as low as $10,000 so you can access the best loans for quick cash flow in your situation.
1. Business term loan
This straightforward business loan is made to cover one-time expenses. It works by giving your business a lump sum to spend on any legitimate expense, which you repay in installments. For $10,000, you can expect the term to be on the shorter side — around six months to two years.
Consider using a business term loan if …
You have a one-time expense
Your personal credit and revenue are strong
You know exactly how much you need to borrow
Consider other options if …
You want to fund an ongoing expense
You have poor credit or low revenue
You’re not sure how much you need to borrow
2. Business line of credit
A line of credit gives your business access to cash as it needs it — up to a credit limit. It’s made to help with ongoing projects like renovations, which can have unpredictable costs.
Depending on the lender, you might pay it off with a minimum monthly repayment, like a credit card. Or you might pay off each draw in installments, like a term loan.
Consider using a business line of credit if …
You experience regular cashflow gaps
You have unpredictable or ongoing expenses
Your credit card’s limit is under $10,000
Consider other options if …
You want to fund a one-time expense
You know how much you need to borrow
You don’t need regular access to cash
3. SBA microloan
The Small Business Administration (SBA) works with independent lenders to offer government-backed financing for small businesses. Most SBA programs offer funding well over $100,000, except for the Microloan Program, which has an average term loan of $13,000.
Microloans are less common than other types of SBA loans — you might have better luck looking to CDFIs and community banks. They’re generally less expensive than other options but can take a long time to process the application.
Consider using an SBA microloan if …
You want a better deal on a term loan
You’ve struggled to get funding before
You have time to spend on the application
Consider other options if …
You need money right away
You can qualify for a good deal on your own
You haven’t applied for a business loan before
4. Equipment and vehicle financing
These term loans are backed by the equipment or vehicle you’re using the funds to purchase, giving you lower rates. How much you can borrow depends on the price of the equipment or vehicle — some lenders will fund up to 100% of the cost, though many recommend at least a 20% down payment.
Consider using equipment or vehicle financing if …
You want to buy equipment or a vehicle for your business
You’re looking for a more competitive deal
You have the funds for a down payment
Consider other options if …
You want to fund a project or need working capital
You don’t have money for a down payment
You don’t want to put up collateral
5. Merchant cash advance
A merchant cash advance is an advance on your business’s future credit card sales. How much you can borrow depends on your business’s monthly revenue, and you pay it back with a percentage of your daily or weekly sales. This option is designed for retailers — particularly those unable to qualify for more traditional business loans. It’s faster than a lot of options but can be expensive.
Consider using a merchant cash advance if …
Your business relies on credit card sales
You’ve struggled to get funding in the past
You need funding right away
Consider other options if …
You don’t have trouble qualifying for a loan
Your revenue doesn’t come from credit card sales
Your funding needs aren’t urgent
Compare personal loans for startups
Startups may have an easier time qualifying for a $10,000 personal loan than a business loan — most startup loans are based on the entrepreneur’s income and credit requirements anyway. Select Compare for up to four personal loan providers to weigh factors like rates, loan amounts and credit score cutoffs for each provider.
When it comes to business loans, $10,000 is on the low end. While it might be easier to qualify for than larger amounts, not all lenders offer financing this low. You might have the best luck with local banks, CDFIs and online lenders.
Can I get a $10,000 business loan to start a business?
It’s possible, but most lenders have minimum time-in-business and revenue requirements. You might want to check out our guide to startup loans to learn more about your options.
Can I get a $10,000 business loan with bad credit?
You can, though not all options might be available to you. Your best bet might be working with a CDFI, which typically has less stringent credit requirements than other types of lenders. Merchant cash advances are also typically available to business owners of all credit types.
Can I get an SBA 7(a) loan for $10,000?
Traditionally, SBA 7(a) loans come in much higher amounts. While it has a 7(a) Small Loans Program capped at $350,000, the SBA Microloan Program is generally better suited for loans as small as $10,000.
Anna Serio is a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.
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