Rates depend on your creditworthiness and the type of loan you get — but marketplaces and alternative lenders may offer the best shot at low rates.
Whether you’re looking for a traditional bank loan, SBA loan or short-term funding to keep your business running smoothly – finding the best rate keeps your payments as low as possible while reducing the overall interest paid.
As of June 2024, banks are charging their best credit borrowers an average of 8.50% APR on term loans – but APRs across business loans can range from 3% to 60%+. Borrowers with high FICO scores and strong financials tend to get the lowest rates, but rates can vary wildly, so it pays to compare. Our June 2024 list of the best low-interest loans includes options for borrowers of all credit types and financing needs.
We chose these lenders based on their starting annual percentage rate (APR) – which is a more accurate representation of cost than interest.
9 best low-interest business loans
These nine lenders offer some of the lowest interest rates available compared to other similar types of financing.
35+ business loan lenders reviewed and rated by our team of experts
12+ types of business loans analyzed
Evaluated under our unbiased rating system covering 10+ categories
20+ years of combined experience covering financial topics
We're big on editorial independence. That means our content, reviews and ratings are fair, accurate and trustworthy. We don't let advertisers or partners sway our opinions. Our financial experts put in the hard work, spending hours researching and analyzing hundreds of products based on data-driven methodologies to find the best accounts and providers for you. Explore our editorial guidelines to see how we work.
Best low-interest business loans
Read about how each of our best low-interest business loans works before you apply.
Lendio is a highly rated online marketplace with 75+ partners that can connect you with a range of short- and long-term business loans for different financing needs. Compare term loans, SBA loans, lines of credit, merchant cash advances, invoice financing and more. Lendio also offers quick turnaround financing options for bad credit borrowers and loans for startups that may be harder to find elsewhere. And unlike some other marketplaces, you never pay a fee to use its services.
Pros
No cost to borrower
Over 75 partner lenders
SBA loans available
Assistance for ERC tax credit
Partners with banks and online lenders
No fee to the borrower
Cons
Not a direct lender
You may have to field calls from partners
Low rates not available to all businesses
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
3 months to 25 years
Requirements
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $20,000 in monthly revenue
Kiva is a nonprofit offering 0% interest microloans to entrepreneurs and small businesses. It's one of the best deals out there, but it's not the right choice for everyone. You'll have to raise funds from at least 10 people in your social network to get approved, and the whole process can take up to 45 days. It's best for community-oriented businesses that need small amounts of funding off the ground, as its loan amounts max out at $15,000.
Pros
0% APR loans
No minimum credit score
Can be used to start a business
Cons
Loans max out at $15,000
Must raise funds from your social network first
Can take 45 days to fund
No customer service line
Loan amount
$1,000 – $15,000
APR
0%
Loan term
6 months to 3 years
Requirements
Have at least ten friends and family members willing to contribute to your loan, live in the US, ages 18+, not in bankruptcy or foreclosure, not under any liens, not engaged in: multi-level marketing, direct sales, pure financial investing or illegal activities
Lendzi is a highly-rated free loan marketplace with a difference. Rather than working with hundreds of lenders like other marketplaces, Lendzi takes a more selective approach. It vets and partners with a more focused group of about 40 providers specializing in fast turnaround, working capital loans like lines of credit and cash advances. However, as an alternative lender, rates may be significantly higher than with a traditional bank loan.
Pros
Curated lender network
Highly rated on Trustpilot and the BBB website
Proprietary algorithm to match you with lenders
Bad credit options available
Cons
APR ranges not specified
Limited range of loan types offered
Full list of partners not disclosed
Not all borrowers qualify for the lowest rates
Loan amount
$5,000 – $20,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
6 months to 25 years
Requirements
Minimum credit score of 500, minimum annual revenue of $50,000, preferably one to two years in business
Bluevine is an online lender that offers lines of credit with some of the lowest starting interest rates available. There's no origination or monthly maintenance fees, and you could have funds as soon as 24 hours. You also don't have to pay a draw fee when you borrow, and the line replenishes as you pay it down. Each withdrawal turns into a loan with a term of 6 to 12 months, which you repay weekly or monthly, depending on how long you've been in business.
Pros
Low starting rate
Accepts fair credit
Funding in as soon as 24 hours
Cons
Weekly payments may be required
$15 fee for same-day funding
Potentially high APR for fair credit borrowers
Loan amount
$5,000 – $250,000
APR
Starting at 6.2%
Min. Credit Score
625
Loan term
6 or 12 months
Requirements
24+ months in business, $40,000+ in monthly revenue, 625+ credit score
Funding Circle is a peer-to-peer platform that offers business loans with rates as low as 7.49%. It accepts fair credit scores and doesn't advertise a minimum business revenue cutoff. But its rates start relatively high and can reach up to over 30% APR. And regardless of your credit score, you'll also be on the hook for an origination fee of 4.49% to 10.49% to cover platform costs — common for a P2P lender but higher than your typical direct provider.
Pros
Accepts fair credit
No stated minimum revenue required
No prepayment penalties
Cons
Origination fee starts high
Five-day turnaround in some cases
Doesn't disclose maximum APR
Loan amount
$25,000 – $500,000
APR
starting at 7.49%
Min. Credit Score
660
Loan term
6 months to 7 years
Requirements
660+ credit score, 2+ years in business, operates in an approved industry, no bankruptcies in the past 7 years.
Live Oak Bank specializes in government-backed financing for large projects, like business acquisitions. It's one of the most active SBA lenders in the country — and funds some of the largest loans. Its team of lending specialists has experience in a wide range of industries that can help you find some of the lowest-cost financing available to your small business. But expect the lengthy application and long turnaround you'll find with most SBA lenders. And look elsewhere for working capital financing.
Pros
Loan specialists in a range of industries
Top 7(a) lender according to SBA
Low rates thanks to government guarantee
Cons
Often takes months to receive funds
No working capital
No online application
Loan amount
Up to $15 million
APR
Varies
Loan term
Up to 25 years
Requirements
Not stated, but most SBA loans require a minimum credit score in the mid-600s, a down payment of 10% to 30% and possibly collateral
SBG Funding is a highly-rated lender of working capital loans, including term loans and lines of credit from $5,000 to $5 million. The company gets high praise from past customers for its ease of application and fast funding times – which can be important when you're looking for quick capital.
Its business line of credit starts at 1% a month with increases possible every 60 days, and its term loans start at 1.75% a month with terms up to seven years. While this is more expensive than a bank term loan, SGB has a much higher approval rate than most banks.
Pros
Fair credit ok
High approval rate
High loan amounts
Excellent customer reviews
Cons
High annual revenue requirement
APRs may be higher than a bank term loan
Loan amount
$5,000 – $10,000,000
APR
Starting at 1.75%
Min. Credit Score
600
Loan term
6 months to 7 years
Requirements
600+ credit score, 6+ months in business, $250,000+ in annual revenue
Loan amount
$5,000 – $10,000,000
APR
Starting at 1.75%
Min. Credit Score
600
Best CDFI loan
Accion Opportunity Fund business loans
3.6
★★★★★
Finder score
Accion Opportunity Fund is one of the few community development financial institutions, or CDFIs, that offers financing across the country with an online application. It has some of the lowest starting rates out there, paired with flexible requirements — you only need to make $50,000 in annual revenue, and there's no stated credit score minimum.
And it offers coaching and mentoring programs to help your business grow successfully. But AOF is relatively new — it's the product of a merger between two nonprofit lenders — and may be working out some kinks. Both Accion and Opportunity Fund have gotten mixed reviews on the quality of customer service in the past.
Pros
Low starting APR
Low revenue requirement compared to other lenders
No stated minimum credit score
Cons
Established as AOF in March 2021
Loan amounts vary by state
Mixed customer service reviews
Loan amount
$5,000 – $250,000
APR
8.49% to 24.99%
Min. Credit Score
570
Loan term
12 to 60 months
Requirements
12+ months in business, $50,000+ in annual revenue, must own 20% of the business, must be based in the US
Loan amount
$5,000 – $250,000
APR
8.49% to 24.99%
Min. Credit Score
570
Best unsecured bank loan
Bank of America business loans
3.6
★★★★★
Finder score
Bank of America has some of the lowest rates on unsecured business loans out there, especially if you can score an existing customer (relationship) discount. In addition to business loans, it offers business auto loans, business checking and savings accounts and merchant processing services.
It's also one of the few national banks that's truly available in all 50 states, with thousands of branches you can visit nationwide. But like with many traditional bank loans, it can be difficult to qualify unless you have excellent credit, at least $100,000 in annual revenue and are an existing customer.
Pros
Relationship discounts available
Low rates compared to other unsecured loans
Available in all 50 states
Cons
May be difficult to qualify as a new customer
Flat $150 origination fee regardless of loan amount
Loan amount
$10,000 – $100,000
APR
Starting at 8.50%
Min. Credit Score
700
Loan term
12 to 60 months
Requirements
Good credit, 2+ years in business, $100,000+ revenue
Loan amount
$10,000 – $100,000
APR
Starting at 8.50%
Min. Credit Score
700
6 types of lenders that offer low-interest business loans
Under normal circumstances, banks, nonprofits and other providers that offer government-backed loans have the lowest interest rates on the market.
1. SBA lenders
SBA lenders offer government-guaranteed loans to established businesses that might not qualify for a bank loan. The SBA sets limits to interest and fees for all SBA loans that these lenders can charge, depending on the program and loan size.
Some SBA loans might even offer options to startups and business owners with bad credit, like the SBA Community Advantage and microloan programs. But generally, you need to have at least three years in business and good credit to qualify for most SBA loan programs.
2. Large national banks
Large national banks like Bank of America, Chase and Wells Fargo tend to offer the lowest interest rates out there on loans. However, national banks are highly risk-averse and offer some of the hardest loans to qualify for as a small business. Startups, business owners with credit scores below 670 and businesses in traditionally high-risk industries like construction may want to look into other options.
3. Regional and community banks
Regional banks like Citizens Bank and small community banks might offer slightly higher rates than most national banks — usually, they start at around 5% APR. But they’re generally cheaper than online lenders, are better suited to work with small businesses and offer more than just financing.
Community banks in particular are often intimately familiar with the local market and can offer personalized advice. And since these lenders are small, they can often be more flexible with credit requirements, such as the time in business or credit score minimum.
4. CDFIs
Community development financial institutions, or CDFIs, are small nonprofit lenders with a mission to support the economy in the community they serve. They often offer relatively low-cost loans to small businesses that can’t qualify for an SBA or bank loan. But they’re generally more expensive than a bank or SBA loan.
5. Microlenders
Microlenders are nonprofits that offer small-dollar financing to entrepreneurs and startups. While rates often top 12% APR, they’re cheap compared to the other options available to the borrowers they target. For example, interest rates on online loans available to startups and borrowers with bad credit typically top 60% APR.
6. Credit unions
While most credit unions don’t have business loan programs, those that do often have rates comparable to a regional or community bank. For example, Lake Michigan Credit Union’s business loan rates start at 5%. Requirements also often compare to regional or community bank loans — plus, you typically have to become a credit union member.
Consider a personal loan for low-cost startup financing
Personal loans may be a better choice if you have a startup with less than six months of revenue — as long as you have good credit and a source of income outside of your new company. That’s because lenders consider new businesses to be risky and will charge high rates — if they offer the loan at all. A personal loan from a lender like Upstart, which considers factors like your education and career alongside income and credit, may be a better option.
What is considered low interest on a business loan?
Any business loan with an annual interest rate (AIR) of 3% to 10% is considered low interest compared to the average interest rates you’d see with a business loan, depending on where you borrow from. However, it’s more common for lenders to display the APR on a loan – which is the rate with fees factored in – instead of AIR.
Since business loans typically come with origination fees of 1% to 5% of the loan amount, APRs of 6% to 15% APR are usually considered low. That’s because business loans can reach 100% APR or higher — especially with online short-term loans.
How to qualify for a low-interest business loan
You typically need to meet the following requirements to qualify for a low-interest business loan:
At least three years in business
Good or excellent credit score of at least 670
Profitable business with regular revenue
Low debt obligations compared to revenue
Low-risk industry
While requirements generally depend on the lender and type of loan, the lowest rates tend to go to these types of businesses.
Each lender has its own underwriting criteria. That’s why comparing offers from multiple providers can help you find the lowest interest rates available to you.
Is it possible to get a 0% interest business loan?
Getting 0% interest funding for your business is highly unlikely through any form of traditional business financing. However, there are less traditional forms of business funding that may offer a shot at 0% interest. For example, Kiva, which made our list, is a community-based lending platform that let’s you crowdsource funds from family, friends and a greater community of lenders. It’s websites says you can get up to $15,000 with 0% interest. You may also get funding from grants and other non-profits that offer funding with no interest.
More ways to compare business loans
While the interest rate is a large factor in your loan’s cost, it’s not the only thing you should compare. These factors can help you find financing that’s a good fit for your business.
Available loan amounts are key to comparing lenders. Look for a provider that offers the exact amount you need to avoid over-borrowing.
Loan terms tell you how long you have to pay off the loan and determine your monthly payment. A longer term gives you a lower payment but a higher total cost.
Monthly payments are how much you owe each month and will have an immediate effect on operations. Looking for a monthly payment you can afford is important to avoid defaulting on a loan.
Origination fees are a percentage of your loan that the lender either deducts or adds to the balance at closing. This can affect how much funding you receive and should factor into the amount you apply for.
Minimum requirements for credit score, revenue and time in business tell you where the lender isn’t willing to budge. For the best rates, look for a lender with requirements you comfortably meet.
Customer reviews on sites like Trustpilot and the Better Business Bureau tell you what you can expect from customer service and alert you to red flags to watch for.
Low-cost alternatives to business loans
Business loans aren’t always the right choice for every financing need. You may want to consider these alternatives before you apply.
Business grants offer funds that your business doesn’t have to repay, usually up to around $15,000. However, grants are mostly available to nonprofits and can be highly competitive.
Personal loans can be a good choice if you need seed funding to start a new business. But a personal loan to fund a business comes with some risk: You’ll be responsible for payments even if your business shuts down.
Recap: These lenders offer the best low-interest business loans
These providers offer some of the lowest interest rates available compared to other similar types of financing.
The prime rate is the rate that banks give to their most creditworthy borrowers, and is the benchmark for all other interest rates. So, the closer a business loan’s interest rate is to the prime rate, the better it is. Always compare quotes from multiple lenders to ensure you’re getting the best deal.
Can I get a business loan with bad credit?
Yes, it’s possible to get a business loan with bad credit, but you typically won’t get a competitive interest rate. To get a lower rate, consider putting up collateral, like real estate or equipment, to secure your loan and offset the risk for the lender.
How does business debt consolidation work?
Debt consolidation works by paying off one or more loans with a new loan that has a lower interest rate. Most business debt consolidation loans are term loans, but it’s also common to consolidate debt with a low-rate credit card. You can also consolidate business debt with a personal loan or home equity loan, though you’ll be personally responsible for repayment if the business fails.
Top 10 best business guides
Explore the top business loan guides to help you along your business journey. From information on the best business loans on the market or your best startup loan options, to business loans that require little to no paperwork and more.
Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio
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Anna has written 251 Finder guides across topics including:
Kat Aoki was a personal finance writer at Finder, specializing in consumer and business lending. She’s written thousands of articles to help consumers make better decisions on their home loans, bank accounts, credit cards, cryptocurrency and more. Kat is well versed in working with leading brands in the real estate, mortgage and personal finance industries, and her expertise has been featured on Forbes Advisor, Lifewire and financial comparison sites like iSelect and realestate.com.au. She holds a BS in business administration from California State University, Sacramento and enjoys hiking and yoga in her spare time. See full bio
Kat's expertise
Kat has written 198 Finder guides across topics including:
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