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6 Best Startup Business Loans with Easy Approval

Loans for startups may be more difficult to come by — and some loan options offer easier approval than others.

Startups and newer businesses are seen as more risky for lenders than established businesses. Roughly half of small businesses fail within the first five years, according to the Bureau of Labor Statistics (BLS).

However, that doesn’t mean startups can’t get business loans. In fact, there are many lenders willing to work with young businesses and offer multiple loan options that are easier to get approved for than traditional business loans.

Best startup business loans with easy approval

Best lending marketplace

Lendio business loans

4.8
★★★★★

Finder score

Go to site Read review
Loan amount$1,000 – $10,000,000
APRVaries by lender
Min. Credit Score520

Best for no credit check

FundThrough Invoice Factoring and Financing

4.5
★★★★★

Finder score

Go to site
on Businessloans.com's secure site
Read review
Loan Amount$500 to $10M
Fee for Terms2.75% to 8.25%

Best for bad credit

Kiva business loans

3.7
★★★★★

Finder score

Go to site
on Businessloans.com's secure site
Loan amount$1,000 – $15,000
APR0%

Best for business line of credit

Fundbox lines of credit

4.2
★★★★★

Finder score

Read review
Loan amountUp to $150,000
APRNot stated

Best for equipment financing

National Funding business loans

4.6
★★★★★

Finder score

Go to site
Loan amountUp to $150,000
APRNot stated
Min. Credit Score600

Best for merchant cash advance

Credibly business financing

3.8
★★★★★

Finder score

Read review
Loan amount$5,000 to $600,000
Starting Factor Rate1.11
Min. Credit Score500

Methodology: How we choose these lenders

Our team of business loan experts analyze dozens of lenders offering multiple loan types available for startups and newer businesses. We ultimately chose lenders that offer more lenient requirements than more traditional business loans and are willing to work with newer businesses and owners with, potentially, lower credit scores and less revenue.

Some of the criteria we evaluate include:

  • Interest rates
  • Additional fees
  • Loan amounts
  • Loan terms
  • Repayment plans
  • Turnaround times
  • Credit score requirements
  • Time in business requirements
  • Revenue requirements
  • Reputation of the lender

Finder also maintains strict editorial integrity and independence. This means our content and suggestions are fair, accurate and trustworthy, and our opinions aren’t influenced by advertisers or partners. To learn more, check out our editorial guidelines here.

How to compare startup loans

Consider several factors when choosing the right type of financing for your startup business.

  • Rates. Interest rates — or factor rates, in some cases — vary widely depending on the lender and the loan type. Be sure to check with multiple lenders to find the best rates.
  • Fees. Keep in mind that some lenders charge fees on top of interest rates, which add to the loan’s total cost.
  • Turnaround times. While some loan types offer fast funding, others — like SBA loans and real estate financing, for example — typically have a lengthier loan process.
  • Loan terms. Startup loans with easy approval tend to have shorter terms than other types of business financing, so be sure the loan payments fit into your budget.

What is a startup business loan, and how does it work?

A startup loan is designed to help you start or grow your business or cover short-term cash flow or other financing needs. It offers access to capital for covering payroll, buying inventory, hiring new employees, expanding your space or investing in new equipment. Loan types include short-term loans, invoice factoring or financing, equipment loans, merchant cash advances and microloans, among others. Loans may be secured or unsecured.

Most startup loans work much like other types of business funding. You assess your financing needs, consider the loan type that makes the most sense and apply to lenders that offer what you’re looking for. Lenders evaluate your business, creditworthiness and other factors to determine loan approval and disburse funding if approved. You’ll repay the loan with interest according to your repayment schedule.

Some loan types — such as invoice factoring and merchant cash advances — may be less concerned with your credit and more interested in your ability to repay the loan based on your revenues. Lenders that offer these types of loans typically have less traditional repayment schedules, and you may need to agree to weekly or even daily repayment schedules.

Pros and cons of startup business loans

Consider the benefits and drawbacks of startup business loans before you apply.

Pros
  • Access to a variety of loan types
  • Capital to start, grow or operate your new business
  • Fast funding available
  • Some loan types help to build business credit
Cons
  • May have higher rates and fees
  • May require daily or weekly repayments
  • Typically shorter loan terms
  • Some loan types may require a personal guarantee

Compare other types of business loans

To round out your research, consider these business loan lenders to see if they can meet your needs and budget.

Name Product USFBL Filter Values Min. Amount Max. Amount APR Requirements
Olympus Business Capital
Finder Score: 4.4 / 5: ★★★★★
Olympus Business Capital
$500
$250,000
Not stated
Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month
No credit needed. Funding up to $250,000 with a variety of finance options to best fit your business needs.
Go to site
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio business loans
$1,000
$10,000,000
Varies by lender
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera business loans
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
National Funding business loans
Finder Score: 4.6 / 5: ★★★★★
National Funding business loans
$5,000
$500,000
Undisclosed
In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.
Working capital loans and equipment financing, some high-risk industries may be eligible.
Go to site
American Express® Business Line of Credit
Finder Score: 4.4 / 5: ★★★★★
American Express® Business Line of Credit
$2,000
$250,000
N/A
Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000
Access lines of credit for your small business even if you aren't currently an Amex customer.
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Types of startup business loans

Here are some of your options for startup business loans.

TypeTypical loan amountsTypical term lengthsBest for
SBA$13,000 to $5 millionUp to 25 yearsEstablished businesses with decent credit that don’t qualify for other types of funding
Equipment financingUp to 100% of the cost of the equipment3 to 10 yearsBusinesses that need heavy equipment or other expensive machinery
Term loansUp to $2 million1 to 10 yearsBusinesses with good credit looking for large loan amounts and predictable monthly payments
Business lines of credit$2,000 to $250,0006 months to 5 yearsBusinesses looking for immediate short-term funding or want a renewable lending source
Microloans$500 to $50,000Up to 6 yearsStartup businesses or women- or minority-owned firms
Invoice factoring70% to 90% of unpaid invoices1 to 3 monthsB2B companies with a lot of outstanding invoices
Invoice financing70% to 80% of unpaid invoices1 to 3 monthsB2B companies with a lot of outstanding invoices
Merchant cash advance$5,000 to $200,0003 to 12 monthsRetail businesses or others that have a lot of credit card sales

How to qualify for startup business loans with easy approval

The exact requirements to qualify for a startup business loan vary by lender and loan type, but here are some basic criteria you’ll likely need to meet:

  • Six months in business
  • $10,000 in monthly revenues
  • A credit score of at least 500 (some lenders require higher scores)
  • Business bank account
  • At least three months of bank statements

Some lenders may also require collateral or a personal guarantee to qualify for a startup business loan.

How to apply for a startup business loan

Follow these steps to apply for a startup business loan:

  1. Define your loan purpose. Figure out exactly what you want to use the loan for and calculate how much you’ll need to accomplish your goal.
  2. Explore loan options. Decide which loan option makes the most sense for your loan purpose and the amount you seek.
  3. Compare lenders. Compare multiple lenders to find the best deal. Be sure to compare rates, fees, requirements to qualify and repayment terms.
  4. Prequalify. If possible, prequalify for the loan before committing to a hard credit check. One way to prequalify is through a lending marketplace like Lendio, which gives you access to multiple lenders and loan types with one application.
  5. Gather your documents. Even startup loans with easy approval typically require some type of documentation to qualify. Items to have on hand include personal and business tax returns, bank statements, loan proposal, business plan and business financial documents.
  6. Apply. In most cases, you’ll apply online and submit the required documentation or provide access to your business bank account.
  7. Wait for approval. Many startup lenders give you a loan decision the same day you apply, but there could be delays if further documentation is needed.
  8. Get funded and follow the repayment plan. You could receive funding as soon as the next day after approval.

Alternatives to startup business loans

If you don’t qualify for a startup business loan or just want to explore your options, consider these alternatives:

  • Personal loans. Many startups rely on personal loans to help fund their businesses. Requirements to qualify are typically less strict than business loans, but you’ll need good credit to get the best rates.
  • Home equity financing. If you own your home, you could leverage your home’s equity with a home equity loan or home equity line of credit (HELOC).
  • Credit cards. For relatively small financing needs, you may want to consider a card with a 0% introductory rate to finance purchases up to a year or more with no interest.
  • Business grants. Competition can be fierce for grants, and requirements might be strict, but it could be worth a try.
  • Equity investors. With a solid business plan, you may be able to get investors to help fund your business in exchange for a percentage of your company.

Frequently asked questions

Can I get a startup business loan with a 500 credit score?

It’s more difficult to get a loan with a low credit score, like 500. But some lenders work with borrowers who don’t have great credit. For example, Credibly accepts borrowers with 500 credit scores. Plus, some types of business loans — like invoice factoring and financing — are more concerned with the creditworthiness of your customers than with you.

Which SBA loan is easiest to get approved for?

The SBA Express loan is said to be the fastest type of SBA loan you can get. This claim is mainly because the SBA allows lenders that offer these loans to use their own processes and procedures to approve the loans without requiring SBA review. In exchange, the SBA only guarantees a maximum of 50% of the loan.

What is the easiest business loan to get?

The easiest loans to qualify for are generally short-term loans, equipment loans or merchant cash advances.

Megan B. Shepherd's headshot
To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
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Written by

Writer

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. See full bio

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