Do you need an LLC to get a business loan?

No. Many lenders work with sole proprietors, partnerships and corporations, too. However, having an LLC may improve your chances with lenders that don't work with sole proprietors, and it helps build a separate business credit profile.

Does a business loan hurt your personal credit if you have an LLC?

Generally, no — business loan payments typically only appear on your business credit report. However, if you sign a personal guarantee and default, it can affect your personal credit and expose your personal assets.

What credit score does an LLC need to get a loan?

It depends on the lender. Fundbox accepts scores as low as 600, while banks and SBA lenders typically prefer 670 or higher. Marketplace lenders tend to offer more options for lower scores.

Can a brand-new LLC get a business loan?

It's difficult, but possible. Fundbox accepts LLCs with as little as three months in business, and marketplaces like Lendio and Fundible work with newer businesses, too. Expect higher rates and lower limits if you haven't yet reached one year in business.

What is the difference between an LLC loan and a regular business loan?

There is no structural difference. Lenders don't offer a separate "LLC loan" product. The term simply refers to a standard business loan taken out by an LLC.

Matt Sayer, Writer at Finder

Matt Sayer

Writer

Matt Sayer is a technology writer and editorial engineer for Finder, combining industry expertise with data-driven solutions to help people make better decisions. His extensive portfolio spans investigate reporting on the roll-out of 5G, statistical analysis on the legacy of E3 and guides for popular products like mobile phones and smart speakers. Matt has a Bachelor of Computer Science from RMIT University and is passionate about finding ways that technology can better our lives.

Business Loans

Get Funded by Fundera: Fast Funding Up to $5 Million

Get connected with short-term funding, SBA loans, lines of credit and more.

Stock Trading

What Is Margin Trading?

What margin trading is, how it works and the risks to know before using leverage.

Retirement

What Is Wealth Management?

Wealth management explained clearly, including services, costs, and when it actually makes sense.

Investments

Range vs. Facet

Compare Range vs Facet and see which wealth management service fits your needs based on complexity, cost and investment support.

Personal Loans

Best Large Personal Loans Over $50K (2026)

$50K+ personal loans exist, but most borrowers don’t know where to find them. Do you?

Short-term loans

Best No Credit Check Loans and Cash Advance Apps (2026)

If you are concerned about your credit score, there are lending options available without any credit check.

Personal Loans

Best Personal Loans for Self-Employed Borrowers (2026)

Personal loans for self-employed workers may require a little more documentation than traditional borrowers need.

Personal Loans

8 Best Joint Personal Loans & How to Get One in 2026

Want to split a loan with your partner or increase your chances of approval? Learn how joint application loans work and which lenders offer them.

Short-term loans

Best Installment Loans: Personal & Short-Term (2026)

Compare the best installment loans for every credit type, need and budget in 2026.

Business Loans

7 Best Business Loans for LLCs in 2026

Compare business loans and financing your LLC, and learn how to apply.

Matt Sayer

Latest articles by Matt Sayer

Advertiser disclosure