Best Startup Business Loans in January 2023

Compare the best startup business loans in January 2023

LENDER AND LOAN TYPE

BEST FOR

MIN. FICO CREDIT SCORE

LOAN AMOUNT

MIN. TIME IN BUSINESS

Credibly small business line of credit

Line of credit

600

Up to $300,000

6 months

Triton Capital equipment loan

Equipment loans

600

$10,000-$500,000

Startups eligible

Fora Financial Revenue Advance

Working capital

500

$5,000-$1.4 million

6 months

Kiva microloan

Community support

Not applicable

Up to $15,000

Not disclosed

Fundbox line of credit

Fast funding

600

$1,000-$150,000

6 months

Credibly small business line of credit: Best for line of credit

Minimum FICO credit score:
600

Minimum annual revenue:
$180,000

Minimum time in business:
6 months

Interest rates from:
Not disclosed

Loan amount:
Up to $300,000

Term lengths:
Not applicable

 

Overview: Credibly is focused on small and medium-sized businesses. Businesses may be funded in as little as 24 hours following approval. Credibly offers both secured and unsecured line of credit options. Though Credibly’s minimum annual revenue is on the higher end at $180,000, its maximum loan amount is also on the high end at $300,000. The lender does not have set term lengths, since this is a revolving line of credit. Business owners are free to draw and pay interest on only what they use. Credibly offers both secured and unsecured options.

Why Credibly is the best for bad credit: Credibly has a minimum credit score of only 600. The company doesn’t just look at credit scores, but also weighs other data like bank statement information.    

Pros

Prequalification tool
Considers factors beyond credit score
High maximum loan amount

Cons

May require an origination fee 
Credibly does not disclose its interest rates
$180,000 minimum annual revenue


Eligibility and more


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Triton Capital equipment loan: Best for equipment loans 

Minimum credit score:
600

Minimum annual revenue:
$350,000

Minimum time in business:
Startups eligible

APR from:
5.99%-24.99%

Loan amount:
$10,000-$500,000

Term lengths:
12-60 months

 

Overview: Triton Capital states to have helped thousands of businesses in over 175 industries acquire needed equipment. The application is online and business owners can apply in 60 seconds. This loan helps businesses to access funds for large-scale equipment and technology, so the annual revenue requirement is higher, at $350,000. The required credit score of 600 is also on the higher side compared to other featured lenders. 

Why Triton Capital is the best for equipment loans: Triton has a large loan amount range of $10,000 to $500,000, so it’s a good option that could fund anything from a point-of-sale system to larger-scale manufacturing equipment. Though Triton Capital doesn’t state a minimum time in business, a representative told Bankrate that the company is “typically able to offer equipment loans to startup businesses” — a rarity for this type of loan.

Pros:

Low minimum APR
Available in all states 
Quick application process 

Cons:

Documentation fee
Must have majority ownership of business to apply 
High minimum annual revenue at $350,000


Eligibility and more


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Fora Financial small business loan: Best for working capital 

Minimum credit score:
500

Minimum annual revenue:
$144,000 in gross sales

Minimum time in business:
6 months

Factor rate from:
1.15-1.40

Loan amount:
$5,000-$1.4 million

Term lengths:
Variable

 

Overview: Fora Financial started in 2008 as Paramount Merchant Funding. A key feature of the revenue advance is the low credit score needed. However, businesses need $144,000 in gross sales annually to access the funding (or $12,000 monthly). 

Revenue advances allow you borrow within the loan amount range against future revenue. Terms on the loan are variable. Payback works as a fixed percentage of daily or weekly receipts. You can also increase the amount borrowed after you pay back 60% of the original loan.  

Why Fora Financial is the best for working capital: A standout feature is the wide range for the loan amount, going from just $5,000 all the way up to $1.4 million. According to Fora, businesses typically qualify to receive an amount between 75 percent and 125 percent of their monthly gross sales. This can be a good loan option for a business owner with big plans to expand. You also only need to be in business for six months. 

Pros:

Wide loan range of $5,000 to $1.4 million 
Payments based on daily or weekly receipts  
No collateral needed

Cons:

Fees
High gross sale amount of $12,000 monthly
Uses factor rate, so repaying your loan early doesn’t save you money


Eligibility and more


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Kiva microloan: Best for community support

Minimum credit score:
Not applicable

Minimum annual revenue:
Not applicable

Minimum time in business:
Not disclosed

Interest rates from:
Not applicable

Loan amount:
Up to $15,000

Term lengths:
36 months

 

Overview: Kiva is an international nonprofit founded in 2005 in San Francisco. Its website states that 1.7 billion people around the world don’t have access to a bank. To serve those entrepreneurs, Kiva offers zero-interest loans for up to $15,000 comes in with an unusual crowdfunding model.

 

Why Kiva is the best for community support: Kiva, a nonprofit, states that 2.5 million people globally have raised over $1 billion on Kiva. Because Kiva requires no credit check, this could be a good option for businesses with poor or limited credit history but high visibility and grassroots support.

Pros:

Zero percent interest on up to $15,000  
Helps impoverished communities access capital

Cons:

Not a traditional loan
Getting funds can take weeks and is based on fundraising  


Eligibility and more


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Fundbox line of credit: Best for fast funding

Minimum credit score:
600

Minimum annual revenue:
$100,000

Minimum time in business:
6 months

Weekly fee from:
4.66% (12-week terms) or 8.99% (24-week terms)

Loan amount:
$1,000-$150,000

Term lengths:
12 or 24 weeks

 

Overview: Fundbox has been around since 2013. It operates as an embedded working capital platform for small businesses. Loan amounts range from $1,000 to $150,000, making it a good source for a possible microloan. The company does not use traditional interest rates, and instead relies on an amortized weekly fee. Fees start at 4.66% per week for 12-week terms and 8.99% for 24-week terms. This loan from Fundbox is also unsecured.

Why Fundbox is the best for fast funding: The application is online and approval can come in as little as three minutes. You can apply and draw funds from Fundbox’s app. The time to funds is also listed as soon as the next business day.

Pros:

Fast funds 
Fairly wide range of loan amounts 
Unsecured option

Cons:

Minimum annual revenue is somewhat high at $100,000 
Non-sufficient funds fee  
Weekly fee instead of interest makes rate comparison hard


Eligibility and more


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