Business hit a plateau? Compare loans for stagnant businesses

Business borrowing guide stage 5: Loans for stagnant businesses

Has your business plateaued? Find out how you can finance your way back to growth.

With the market centering on innovation and entrepreneurship, it can be easy to be lulled into a false sense of security that continued business growth is inevitable. However, businesses of all sizes can go through stages where profits level out, and you may need financing to kick your business back into gear. This is the guide to read if your business is in that stagnant stage.

OnDeck Small Business Loans

OnDeck Small Business Loans

Among the largest online business lenders offering term loans and lines of credit at competitive fixed rates.

  • Minimum Amount: $5,000
  • Maximum Amount: $500,000
  • Loan Term: 3 to 36 months
  • Simple online application process with fast decisions
  • Dedicated loan specialists and loyalty benefits
  • Must have been in business for at least one year with annual revenue of $100,000+
  • Must have a personal credit score of 500+

    When is a business considered stagnant?

    This is essentially when business growth plateaus. This may be due to an ongoing reduction in profit, to revenue slipping at a time of year when it should be increasing, or it becoming necessary to cut back in areas, such as marketing, which the business has not had a problem covering in the past.

    Common expenses stagnant businesses may need financing for

    Stagnant businesses can be in any industry and can be of any size, making their funding needs varied:

    • Marketing. Due to decreased or plateaued profits, you may have cut back on your marketing budget. This is not the time to be cutting back, but it’s sometimes a necessity. You may be looking for funding to be able to pay for this and generate new revenue for the business.
    • Human resources. There are several reasons a business may become stagnant, but this position may lead to failings in human resources, which impact the customer. By investing in your staff for customer service or product development, or hiring additional staff to assist with growth, you may be able to help your business expand.
    • Product or service redesign. Some businesses have a successful product or service at first, but they fall into stagnation due to lack of development or innovation. By seeking finance to expand your product line, re-innovate it or even just do market research, you can assist your business.
    • Hire outside help. It can be difficult to diagnose business issues if you’re entrenched in the business’s practices, which can make hiring outside expertise a good investment. You may opt for organizational experts, designers for marketing or website help or a PR agency that can drum up some interest in your business.

    What are the best types of financing for these needs?

    Loan typeLoan amountHow it worksWhat to consider
    Line of credit$10,000–$1,000,000Repay only what you use of the credit line, plus fees and interest
    • Flexible and based on your funding needs
    • Generous loan terms (usually up to 25 years)
    Term loan$5,000–$5,000,000Make regular repayments over a set term, calculated at a fixed or variable rate
    • You must know how much you need to borrow
    • May be difficult to increase your loan amount if needed
    Invoice financing or factoringUp to 80% of the invoice amountPay fees to get an immediate advance on your outstanding invoices
    • Improve cash flow by bringing invoice payments forward
    • If you become reliant on timely invoice payments, you may need to keep using the finance

    Useful guides for stagnant businesses

    Compare lenders who could help you put your business back into growth phase

    Rates last updated February 21st, 2018
    Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
    LendingTree Business Loans
    Compare multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $75,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    LoanBuilder, A PayPal Service Business Loans
    $5,000
    $500,000
    Annual business revenue of at least $100,000, at least 1 year in business, personal credit score of 600+.
    National Business Capital Business Loans
    Get a large business loan to cover your financing needs, no matter what the purpose is.
    $10,000
    $5,000,000
    Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
    Kabbage Small Business Line of Credit
    A simple, convenient online application could securely get the funds you need to grow your business.
    $2,000
    $250,000
    Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
    SmartBiz SBA Loans
    Get funding for your small business with a government-backed loan and extended repayment terms.
    $30,000
    $5,000,000
    Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.
    Excel Capital Management Small Business Loans
    Get personalized financing options that suit your unique business needs in just a few simple steps.
    Varies by loan type
    Varies by loan type
    Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.

    Compare up to 4 providers

    How to compare your business loan options

    If you’re unsure what business loan you should opt for, here’s how you can compare the options you have:

    • Loan amount. You will have a general idea of how much your business needs to borrow, so make sure the lender offers this. Business lenders usually have minimum and maximum amounts available, and if you’re taking out a secured loan, it will depend on how much your security is worth.
    • Interest rates. Lenders will charge a fixed or variable rate, or a factor rate, which is calculated differently. Check what type of interest rate will be charged and how high it is to get an idea of how competitive the loan is. Remember, the comparison rate will show you a representation of the interest rate plus fees.
    • Fees. You can be charged a whole range of fees with business loans. These can include upfront fees such as establishment and application fees, or ongoing fees such as monthly or annual fees. Late fees and default fees will also apply.
    • Turnaround time. How soon do you need the funds? Alternative online lenders can get your funds disbursed in as little as 24–48 hours after approval, but more traditional lenders may take longer. Be sure to check that the turnaround time meets your needs before you apply.
    • Flexibility. As your business is stagnant, you may need a more flexible loan than what is offered. For instance, can you borrow more funds easily if you need to? Are you able to repay the loan early without penalty, or make additional repayments? Verify the flexibility of the loan before you apply.

    What’s the eligibility criteria for different business lenders?

    LenderRequirementsRead the full review
    National Business CapitalYour company must have been in business for at least 6 months and have an annual revenue of at least $180,000.More
    SmartBiz SBA LoansPersonal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.More
    LendingClub Business Loans2+ years in business; $75,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal creditMore
    Able LendingBusiness must be in operation for at least one year, bring in at least $50,000 in annual revenue, must have a personal credit score of 600 or higher, no personal bankruptcy in the past 12 months. More
    KabbageMust have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.More
    OnDeckMust have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.More

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