Compare non-bank business loans as an alternative to traditional banks

Compare the best non-bank business loans

Looking for better rates and more flexible terms on a business loan? See what non-bank lenders have to offer.

Non-bank lenders often provide businesses with added flexibility as they’re privately-owned institutions that aren’t subject to the confinements of a banking license. They also get their funding from numerous sources that offer better flexibility and options, making non-bank business loans increasingly preferable among American businesses.

If you’re thinking about financing, limiting your options to regular banks could cost you. Your business deserves to know all the options available, especially if these options can provide you with better rates, fees, loan terms and even customer service.

OnDeck Small Business Loans

OnDeck Small Business Loans

Among the largest online business lenders offering term loans and lines of credit at competitive fixed rates.

  • Minimum Amount: $5,000
  • Maximum Amount: $500,000
  • Loan Term: 3 to 36 months
  • Simple online application process with fast decisions
  • Dedicated loan specialists and loyalty benefits
  • Must have been in business for at least one year with annual revenue of $100,000+
  • Must have a personal credit score of 500+

    Compare a range of non-bank business loans

    Rates last updated February 18th, 2018
    Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
    LendingTree Business Loans
    Compare multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $75,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    National Business Capital Business Loans
    Get a large business loan to cover your financing needs, no matter what the purpose is.
    $10,000
    $5,000,000
    Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
    Kabbage Small Business Line of Credit
    A simple, convenient online application could securely get the funds you need to grow your business.
    $2,000
    $250,000
    Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
    SmartBiz SBA Loans
    Get funding for your small business with a government-backed loan and extended repayment terms.
    $30,000
    $5,000,000
    Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.
    Excel Capital Management Small Business Loans
    Get personalized financing options that suit your unique business needs in just a few simple steps.
    Varies by loan type
    Varies by loan type
    Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.

    Compare up to 4 providers

    What types of non-bank business loans are available?

    How to find the best non-bank business loan for you

    There is no one “best” business loan on the market, as it will depend on your particular situation. However, keep the following in mind when comparing your options:

    • Can my business afford it? As the most important factor in your decision making, be well aware of all loan costs as well as your repayment ability over the next few months.
    • What’s the interest rate? Make sure you know the difference between fixed and variable interest rates and how they can impact your business. Also be cautious of variable interest rates that exceed your repayment ability.
    • What’s the APR? This combines the loan’s interest rate, fees and other charges into one single percentage to help you better compare your options.
    • What are the fees? Be aware of one-off fees such as application fees, exit fees and termination fees. Other charges include ongoing fees such as service and advance fees.
    • How will I repay the loan? Lines of credit don’t have fixed repayment terms, but lump-sum term loans do and will usually cost you the loan amount plus interest over the loan’s term. Also keep in mind that lenders are usually more flexible with repayments for business loans than personal loans, so check your lender’s repayment terms before applying.
    • Secured or unsecured? The difference between a secured and unsecured loan is huge, with one requiring you to put up assets as collateral for the lender while the other loan type has no collateral requirement (usually meaning higher rates). The right choice depends on your particular situation.

    Pros and cons of borrowing from non-bank lenders

    • Flexible rates. Non-bank lenders are privately-owned institutions, which enables them to be flexible with rates and fees.
    • Customer service. Non-bank lenders usually have better customer service than regular banks. This includes better service, better communication and quicker decision-making.
    • Fewer loan requirements. Generally, non-bank lenders have fewer loan requirements than larger banks. Also, a large portion of non-banks lenders don’t require real estate as security, which can be a huge advantage for American businesses.
    • Inconsistent rates. Rate flexibility is a double-edged sword, which may mean rate volatility. Since non-bank lenders have several sources of funding, they may or may not pass rate cuts on to consumers.
    • Vulnerability. Non-bank lenders are vulnerable in times of economic downturn due to their dependance on a steady economy and their difficulty accessing capital during these times.

    Compare bank loans now

    What pitfalls should you avoid?

    It’s important to be cautious of debt. Avoid borrowing too much money and learn exactly how much debt your business can handle. Also, try not to apply for amounts that exceed your business needs. Understand all the fees involved, including one-off and ongoing fees, and be aware of interest rates that exceed the market rates as well as your ability to repay.

    It’s also important to be cautious of applying too many times for credit products. Applying for multiple loans may negatively affect your credit history and your ability to be approved for future loans. Take your time comparing your business loan options and apply only when you meet all eligibility requirements set out by the lender.

    Lastly, with newer lending platforms comes the opportunity for scammers to take advantage of people looking to borrow money online. Be sure to watch out for business loan scams and know the warning signs before handing over any personal or financial information.

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