Local and online lenders are often your best option when you need a $15,000 business loan. Even big national banks like Chase and U.S. Bank offer business loans at this amount — but other banks of this size, like PNC Bank, only work in larger amounts. In some cases, lenders have even suspended normal business loans to focus on Paycheck Protection Program loans.
The best lender for your business depends on what you want to fund, as well as the state of your personal and business finances.
You can get a $15,000 business loan from most microlenders, community development financial institutions (CDFIs), community banks and online business loan providers.
Microlenders and CDFIs are nonprofit lenders that often accept entrepreneurs who need seed money, startups just getting off the ground and business owners with poor or no credit. They can take a few weeks to fund and may require business owners to enroll in training courses. And some might cap loans under $15,000.
Community banks typically offer lower rates and more favorable terms than other options. But they might not accept businesses with less than three to five years of experience or owners with bad credit. And they can take a few weeks to fund.
Online business lenders typically accept businesses that can’t qualify or don’t have time for a bank loan. Many can get your business $15,000 as soon as the next business day. But rates are often significantly higher than slower options, especially if you go for a merchant cash advance or invoice financing.
The application depends on the type of lender you choose. But these are the steps most business owners follow to apply for a $15,000 business loan.
The turnaround on $15,000 loans can be relatively quick compared to larger business loans. But how quickly you can get the funds depends on your lender and application. The turnaround might be longer if you’re a startup, have low revenue or have bad personal credit.
It’s possible to get a $15,000 business loan if you or another business owner have bad credit, which FICO defines as a credit score below 580.
Microlenders and CDFIs often accept bad or no credit and will likely offer the best deal. Online lenders sometimes also accept poor credit and can get you funds quickly — sometimes in as little as one business day. And even some community banks might be willing to overlook a negative mark on your credit report for a loan of this size.
Certain types of loans are also more friendly to bad credit borrowers than others. Equipment loans and merchant cash advances are usually the easiest to qualify for. Unsecured business loans might be more difficult to get with bad credit.
The cost of a $15,000 business loan depends on the rates and terms that your business qualifies for. Typically rates start at around 5% APR at community banks but can top 300% APR if you get a short-term loan from a merchant cash advance company.
Use our calculator to see how much different rates and terms can affect the cost of your loan.
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These are some of the most common types of loans available at $15,000 for small businesses.
The most common type of business financing, a term loan, gives your business a lump sum to fund a project or working capital. Since $15,000 is on the lower end, you can expect a repayment term on the shorter end — usually from six months to a few years.
A line of credit gives you access to a credit limit that you can withdraw from as needed. It’s a good option for ongoing working capital, long-term projects or costs you can’t predict ahead of time.
You don’t need to qualify for a $15,000 line of credit to access that amount of cash. If you qualify for a higher credit limit, you can simply withdraw $15,000 as needed. And if you qualify for a lower credit limit, you can usually access more funds by repaying your balance.
The Small Business Administration (SBA) microloan program is the only government-backed loan program that offers this amount. In fact, the average SBA microloan is just under $15,000.
You can work with a nonprofit lender to get an SBA microloan. These lenders act as an intermediary to the SBA, and each sets its own requirements. But typically you need to back the loan with collateral and a personal guarantee.
Most equipment loans require a down payment of up to 20%. This means that a $15,000 equipment loan can actually cover the cost of equipment or a vehicle worth $25,000 — as long as you can cover the $10,000 down payment.
While manufacturers offer financing themselves, third-party lenders can sometimes provide a better deal. Compare your vehicle financing options before you talk to the manufacturer to have a better understanding of market rates.
Merchant cash advances offer an advance on your business’s future credit card sales or bank deposits. You repay it plus a fixed fee with a percentage of your daily sales or deposits until the loan is paid off. Typically you only need to be in business a few months to qualify. And most providers accept all credit types.
Usually you need monthly sales of $5,000 to $7,500 to qualify for a $15,000 merchant cash advance, though it depends on the lender. And while this might be an easy loan to qualify for, it’s also one of the most expensive. You can expect APRs around 300%, depending on the provider.
Since $15,000 is on the low end for a business loan, it can be easier to qualify as a startup or bad credit business owner. But you might not be able to find loans of this size at a big bank. Visit our guide to business loans to compare even more options.
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