9.9 Excellent
9.9 Excellent
9.6 Excellent
9.6 Excellent
9.5 Excellent
9.5 Excellent
9.5 Excellent
9.5 Excellent
A business loan can help you purchase inventory, boost cash flow or even open a new location. And when comparing options, interest rates are one of the most important factors to watch.
As of December 2025, the average fixed rate for a bank prime term loan sits at 6.83%,(1) about a point lower than a year ago. That slight drop, tied to the Federal Reserve’s most recent cut, could signal more favorable borrowing conditions for small business owners.
Traditional banks still tend to offer the lowest rates overall, though business loan APRs can range anywhere from 3% to 60% or higher, depending on the lender and loan type.
No matter what kind of financing you’re after, our picks for the best business loans highlight options with competitive rates, low fees and fast approvals and funding.
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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.
Our lending experts analyze dozens of business loan providers to determine the best for business owners and startups. We search for lenders that suit a range of lending needs, highly-rated lenders that offer loans of $100,000 or less because most small business loans fall into that range.
We weigh lenders against 12 key metrics:
We currently don't have that product, but here are others to consider:
How we picked theseThe Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
There are several benefits to using a small business loan or another type of financing:
While small business loan requirements depend on the financing you need, you’ll get the lowest rates and strongest terms by meeting general requirements that include:
Don’t meet these requirements? Visit our guide to business loans to learn more about your options. You can also set up an appointment at a local bank. Community banks tend to have more flexible requirements than their larger counterparts. Even if you don’t qualify for financing, the bank can point you toward other options and advise you on strengthening your application. Or, consider a personal loan from a lender like Upstart if you need funding fast.
Prepare to submit personal and business documents when applying for a small business loan, including:
Yes, it’s possible to get a business loan with bad credit. Some lenders — especially online lenders — will accept scores as low as 500 on certain short-term loans, like merchant cash advances. And other financing options, like invoice financing or factoring, may not consider your credit score at all.
As long as you can show sufficient revenue or invoice value, you could qualify. But rates can often run high on these types of bad credit business loans and are best used in a cash crunch.
Many banks and credit unions offer loans to the self-employed, including business loans. But your odds might be better with an online lender. If you’ve exhausted these options, consider applying to the US Small Business Administration (SBA).
The following SBA loans are available to sole proprietors or independent contractors:
Different SBA loans come with varied eligibility requirements. To qualify for an SBA loan, you must typically have a 680 FICO score, operate your for-profit business in the US, and have exhausted all other funding options.
Startup loans for brand-new businesses with no track record are hard to come by. Most lenders want to see at least six months in business and a certain level of revenue. This presents a catch-22 if you haven’t earned anything yet.
Instead, you could look into getting a personal loan to fund a new business or borrow against your assets, like your home or 401(K) — but these options come with financial risks. If you’re more entrepreneurial, consider a microlender like Kiva, an angel investor or a crowdfunding campaign.
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