Finder makes money from featured partners, but editorial opinions are our own.
Advertiser disclosure
5 Best Personal Loans for Business (2026)
Compare personal loans to help finance your business expenses.
It can be difficult to qualify for a business loan if you’re a startup or don’t meet lenders’ minimum revenue and time-in-business requirements. But personal loans can be easier to qualify for and offer faster funding, with typical loan amounts up to $50,000 or more. Not all lenders allow you to use personal loan funds to finance your business, but the lenders on this list might just fit the bill.
Compare these top personal loan lenders that offer personal loans for business and accept borrowers with a range of credit scores.
Best personal loans for business
- Best for low rates: Upgrade personal loans
- Best for self-employed borrowers: Avant personal loans
- Best for joint applicants: Prosper personal loans
- Best for no origination fee: Laurel Road personal loans
- Best for same-day funding: Rocket Loans personal loans
Methodology: How we choose the best personal loans for business
Finder’s editorial experts review dozens of personal loan lenders on the market to narrow down the best ones that you can use for business purposes. We weigh each lender based on these key metrics:
- APRs
- Origination fees
- Other fees
- Minimum and maximum loan amounts
- Minimum and maximum loan terms
- Number of states served
- Minimum credit score requirements
- Joint application availability
- Turnaround time
- Online application availability
- Prequalification process
- Better Business Bureau ratings
- Trustpilot ratings
- Other features, such as rate discounts
How to compare personal loans for business
Here are some key factors to keep in mind when you’re comparing personal loans to fund your business.
- Can you use this loan for your business? Double-check that the lender allows you to use the loan for business purposes. Some lenders have restrictions on how you can use your loan proceeds.
- Rates. Personal loan rates typically range from about 6% to 36%, and you’ll need a good credit score to qualify for the lowest rates.
- Fees. Many lenders charge origination fees that can range from 1% to 10% of the loan amount. It can be difficult to find one that never charges an origination fee, and you’ll likely need good or excellent credit to avoid it altogether.
- Loan terms. Most personal loans have terms from two to seven years. Bear in mind that you’ll pay less in interest with a shorter term, but your monthly payments will be larger. Pick the term that works best for you without stretching your budget too far.
- Lender requirements. Make sure you’re aware of the lender’s minimum requirements, particularly regarding credit scores, so you can apply where you’re most likely to get approved.
- Turnaround time. If you need the money right away, a few lenders offer same-day funding, like Rocket Loans. But most of the rest can get you funded within a few days to a week.
Pros and cons of personal loans for business
Using a personal loan to finance your business could be a smart move, but consider all the angles before you apply.
Pros
- Easier to qualify. A personal loan relies on your credit score, income and current debts — not on your business. Online lenders are especially willing to consider small business owners who don't meet the strict requirements set by more traditional lenders.
- Less paperwork. Unlike business loans, you don't have to submit much information to the lender when you apply. Your lender will run a credit check, generally after preapproval, and may only require you to send copies of your pay stubs, bank statements or tax returns.
- stacked Potentially lower interest rates. If you have good to excellent credit, you may be able to score a competitive APR on a personal loan that beats the rates on all but the largest business loans.
- Same-day decisions. Most lenders, especially online, are able to review your application and come to an approval decision on the same day you apply. With a business loan, you might have to wait a week or more before learning if your business qualifies.
- No collateral required. When you opt for an unsecured loan — the most common personal loan option — you won't need to provide any collateral to qualify. This protects your personal and business assets.
- More predictable payments. Personal loans typically come with fixed rates and monthly payments. By contrast, business loans often have variable rates and may require weekly or daily repayments.
Cons
- Smaller loan amounts. Only a few lenders offer loans larger than $50,000 — and those are very difficult to qualify for. On the other hand, a business loan may give you the opportunity to borrow in the hundreds of thousands.
- Relies on personal credit history. No matter which financial institution you work with, you'll need to meet its credit score requirements. Your credit history also helps determine how much you can borrow.
- Potentially high rates. If your credit isn't great, you could end up paying almost 36% on a personal loan. At that high cost, the loan might not be the best move.
- No tax benefits. With some business loans, you can deduct the interest on your tax returns, but there's no deduction for interest paid on a personal loan.
Compare other types of loans for your business
5 of 5 results
Compare other products
We currently don't have that product, but here are others to consider:
How we picked theseWhat is the Finder Score?
The Finder Score crunches 6+ types of personal loans across 50+ 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.
How to prequalify for a personal loan for business
Prequalifying for a personal loan allows you to get an idea of the rate and terms you might ultimately qualify for, without taking a hit to your credit. It’s also a great way to compare personal loan lenders to find the best deal.
- Call, visit a local branch or fill out an online application.
- Wait while the lender conducts a soft credit check.
- Receive notification if you prequalify.
- Review loan offers.
- Compare offers from a few lenders.
- Choose your best offer and formally apply.
Business loan alternatives
If a personal loan isn’t the right move for you, consider some of these common types of business loans, how much you can typically borrow and what they’re best for.
| Type | Typical loan amounts | Typical term lengths | Best for |
|---|---|---|---|
| SBA Loans | $13,000 to $5 million | Up to 25 years | Established businesses with decent credit that don’t qualify for other types of funding |
| Equipment financing | Up to 100% of the cost of the equipment | 3 to 10 years | Businesses that need heavy equipment or other expensive machinery |
| Term loans | Up to $5 million | 1 to 10 years | Businesses with good credit, looking for large loan amounts and predictable monthly payments |
| Business lines of credit | $2,000 to $250,000 | 6 months to 5 years | Businesses looking for immediate short-term funding or want a renewable lending source |
| Microloans | $500 to $50,000 | Up to 6 years | Startup businesses or women- or minority-owned firms |
| Invoice factoring | 70% to 90% of unpaid invoices | 1 to 3 months | Business-to-business (B2B) companies with a lot of outstanding invoices |
| Invoice financing | 70% to 80% of unpaid invoices | 1 to 3 months | B2B companies with a lot of outstanding invoices |
| Merchant cash advance | $5,000 to $200,000 | 3 to 12 months | Retail businesses or others that have a lot of credit card sales |
Other alternatives to personal loans for business
Here are a few additional ways to get financing for your business.
- Credit cards. If your small business expenses will fit on a personal credit card, then it may make sense to use it. Not only can you earn cash back and travel rewards, but you may also qualify for a 0% APR introductory period when you open a new credit card.
- Business credit cards. A business credit card allows you to make minimum monthly payments to keep your costs down, as long as you’re willing to pay interest on the carried balance. This is a good way to build your business credit history while covering small to midsize expenses.
- Home equity financing. If you’re a homeowner with at least 20% equity, you could get a home equity loan or home equity line of credit (HELOC) to help finance your business at competitive rates. But it does put your house at risk.
- Friends and family. If your friends and family have the ability, they can be a good source of financing when your credit score is low or you don’t have access to other loan options. Small business owners should still commit to regular repayment — and it could be worth hammering out an official loan agreement to keep both parties happy.
- Crowdfunding. A small business that offers a unique service or product could look into a crowdfunding website to get initial funding. However, you’ll need to commit to marketing on multiple platforms to gain enough traction, especially if this is your primary source of business financing.
- Grants. Grants don’t require you to pay back any funding. This makes them one of the most sought-after options for businesses and the most difficult to qualify for. Only certain types of businesses will be eligible. And even if you qualify, be prepared to spend weeks or even months preparing an application and waiting for a response.
Frequently asked questions
More resources on Finder
Ask a question
More guides on Finder
-
Best No-Fee Personal Loans for 2026
Want to avoid hidden fees? Here are the best personal loans with no origination fees, plus how to save on your next loan.
-
10 Best Debt Consolidation Loans: Pay Off Debt Easier in 2026
Compare 10 lenders to find one that’s a good fit for your needs.
-
Small Loans: Borrow $20 or More Instantly (2026)
Cash advance apps and personal loan providers that offer small loans.
-
10 Emergency Loans for Good and Bad Credit (2026)
Emergency payday loans can give you quick and easy access to funds. Compare your options and find a lender to help see you through.
-
Personal Loans in Texas: Compare Options, How to Get One in 2026
Apply for a personal loan in Texas and get the funds you need.
-
Liberty Tax Refund Advance Review
Get an advance up to $6,250 — but be prepared to pay a finance charge.
-
Jackson Hewitt tax refund advance review
Access up to $3,500 with 0% APR.
-
H&R Block Emerald Advance Tax Refund Loan Review (2026)
Borrow up to $3,500 with 0% APR financing.
-
Compare Personal Loans vs. Student Loans (2026)
Here’s what to expect when it comes to rates, terms, restrictions and more between these two types of loans. Find out which is better for your situation.
-
IRS Debt? Consider a Personal Loan to Pay Taxes
No one likes owing the IRS. With fees and penalties and seemingly complicated forms, it can be easy to feel trapped. Find out how a personal loan can help.