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
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
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
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
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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