Lendio business loans
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Loan amount | $1,000 – $5,000,000 |
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APR | Starting at 3% |
Min. Credit Score | 500 |
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 March 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 March 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.
These nine lenders offer some of the lowest interest rates available compared to other similar types of financing.
Lender | Type of loan | Starting APR | |
---|---|---|---|
Lendio | Business loan marketplace | 3% | |
Kiva | Microloan | 0% | |
Bluevine | Line of credit | 6.2% | |
Funding Circle | Peer-to-peer loan | 7.49% | |
Live Oak Bank | SBA expansion loan | Varies | |
SBG Funding | Working capital loan | 1% to 1.75% a month | |
Accion Opportunity Fund | CDFI loan | 8.49% | |
Bank of America | Unsecured bank loan | 7.5% |
Read about how each of our best low-interest business loans works before you apply.
Lendio business loans
Finder score
Loan amount | $1,000 – $5,000,000 |
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APR | Starting at 3% |
Min. Credit Score | 500 |
Kiva business loans
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Loan amount | $1,000 – $15,000 |
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APR | 0% |
Bluevine business lines of credit
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Loan amount | $5,000 – $250,000 |
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APR | Starting at 6.2% |
Min. Credit Score | 625 |
Funding Circle business loans
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Loan amount | $25,000 – $500,000 |
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APR | as low as 7.49% interest rate |
Min. Credit Score | 620 |
Live Oak Bank SBA loans
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Loan amount | Up to $15 million |
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APR | Varies |
SBG Funding small business term loans
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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.
Loan amount | $5,000 – $5,000,000 |
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APR | 1% to 1.75% a month |
Min. Credit Score | 600 |
Accion Opportunity Fund business loans
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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.
Loan amount | $5,000 – $250,000 |
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APR | 8.49% to 24.99% |
Min. Credit Score | 570 |
Bank of America business loans
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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.
Loan amount | $10,000 – $100,000 |
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APR | Starting at 7.50% |
Min. Credit Score | 700 |
Under normal circumstances, banks, nonprofits and other providers that offer government-backed loans have the lowest interest rates on the market.
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.
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.
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.
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.
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.
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.
Some local governments have loan and grant programs for local businesses that suffered hardship due to the pandemic. But as the economy recovers, fewer and fewer of these programs will be available.
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.
Any business loan with an annual interest rate (AIR) of 3% to 10% is considered low interest, 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.
You typically need to meet the following requirements to qualify for a low-interest business loan:
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.
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.
Business loans aren’t always the right choice for every financing need. You may want to consider these alternatives before you apply.
These providers offer some of the lowest interest rates available compared to other similar types of financing.
Visit our guide to the best business loans of March 2024 for more options.
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.
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.
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.
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