Whether you’re an established LLC or a newer company building credit, nearly every major business lender will work with a limited liability company. The real question is which lender fits your situation — your credit, revenue, how fast you need funds and how much you need to borrow.
We evaluated lenders based on loan types and amounts, minimum credit score and revenue requirements, time-in-business thresholds, interest rates and fees, funding speed, customer reviews on Trustpilot and the Better Business Bureau (BBB), relevance to LLC business structures and nationwide availability.
We also reviewed which lenders consistently appear on top-ranking competitor pages for this keyword. All product details were verified against each lender’s own website.
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What is your primary need for a business loan?
How to compare LLC business loans
When evaluating your options, compare these key factors:
Eligibility fit. Check minimum credit score, time in business and revenue requirements against your current profile before applying.
Loan type. Match the product to your need — a line of credit for ongoing cash flow, a term loan for one-time investments or an SBA loan for long-term growth at lower rates.
True cost. Always ask for the APR — not just the simple interest rate, factor rate or weekly fee — to accurately compare borrowing costs.
Funding speed. Online lenders can fund in 24 to 72 hours; SBA loans typically take 30 to 90 days.
Direct lender vs. marketplace. Marketplaces let you compare multiple offers, but also add a step. Direct lenders move faster but offer fewer options.
Personal guarantee. Most LLC loans require one, which can expose your personal assets if your business defaults — despite your LLC’s liability protections.
What is an LLC business loan and how does it work?
An LLC business loan is a standard business loan taken out by a business structured as a limited liability company. Most lenders don’t offer a separate product for LLCs, but nearly all work with this structure — and having an LLC can actually improve your odds with lenders that won’t work with sole proprietors.
Lenders evaluate your personal credit score, annual revenue, time in business and cash flow when making decisions. One important caveat: even though an LLC limits your personal liability, most lenders require a personal guarantee — meaning you remain personally responsible for repaying the loan if your LLC can’t.
Pros and cons of LLC business loans
Pros
Wide availability — nearly all business lenders work with LLCs
Multiple loan types available for different needs
Can help build your LLC's business credit profile
Funds can typically be used for most business purposes
Cons
Personal guarantee usually required, putting personal assets at risk
Newer LLCs face fewer and costlier options
Online lenders charge higher rates than traditional banks
SBA and bank loans require stronger credit and longer time in business
Types of LLC business loans
Type
Typical loan amounts
Typical term lengths
Best for
Term loan
$5,000–$500,000
1-5 years
One-time investments, equipment, expansion
Line of credit
$1,000–$250,000
6 months-2 years
Ongoing working capital, cash flow gaps
SBA 7(a) loan
Up to $5 million
Up to 10–25 years
Long-term growth at lower rates
Equipment financing
Up to $150,000–$5M+
1-5years
Buying equipment or machinery
Invoice financing
Varies
30-90 days
B2B LLCs with unpaid invoices
Merchant cash advance
Varies
Weeks to months
Consumer-facing businesses needing fast cash
How to qualify for an LLC business loan
Requirements vary by lender and loan type, but most business lenders look for:
At least 6 to 12 months in business (banks and SBA lenders often require 2+ years)
Minimum annual revenue from $30,000 to $250,000 or more, depending on the lender
Personal credit score of 500–670+ (varies significantly by product)
Define your needs. Determine how much you need and what it’s for. This helps narrow the right loan type.
Check your credit. Review your personal and business credit scores before applying.
Compare lenders. Use a marketplace like Lendio or Fundera, or go directly to lenders like Bluevine, OnDeck or National Funding.
Gather documents. Typically three to six months of bank statements, personal and business tax returns, a government-issued ID and your EIN. However, some lenders may offer no-doc loans for LLCs.
Apply and review. Many online lenders use a soft credit check to prequalify. Review any offer carefully — pay close attention to APR, fees, repayment schedule and personal guarantee terms before signing.
Alternatives to an LLC business loan
If you don’t yet qualify or want to explore other routes:
Personal loans. These lump-sum loans can be used for most purposes and are typically unsecured. Most lending institutions offer personal loans, with amounts usually up to $50,000 or even $100,000. Rates run from 6% to 36%, with terms from two to seven years in most cases.
Business credit cards. Business credit cards may be a great option for newer businesses looking to build a business credit score and get a flexible credit line.
HELOCs. A home equity line of credit is a borrowing method that uses your home’s equity as collateral. Most lenders require at least 20% equity to qualify, and it offers a flexible way to borrow with variable interest rates. You may also want to consider a home equity loan if a lump sum loan makes more sense for your business.
Business grants. If you’re a startup or a nonprofit business, consider looking into business grants. You don’t have to repay grants, so it’s a great way to fund a new business venture if you’re lacking capital. But grants tend to have strict eligibility requirements, and their availability is limited.
Frequently asked questions
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.
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.
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.
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.
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.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf.
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Megan B. Shepherd is a personal finance expert and editor for loans and insurance at Finder.
Her personal finance expertise has been featured on Forbes, Nasdaq, MediaFeed, Fox News, Time, Reviews.com, and carinsurance.com, adding invaluable information related to personal loans, financial strategies and smart borrowing tactics.
Megan graduated from the University of Texas at Dallas with a BS in Business Administration with an entrepreneurial focus. She's worked as a certified financial adviser and has earned certificates of completion from A.D. Banker & Company.
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