Financing your business is necessary, but can be tricky. That’s why we’ve compiled this list of our favorite business loans that make it easier to qualify for traditional bank loans. If you’re a new business, entrepreneur, or startup struggling to secure funding, we’ve got you covered. The right easy loan has quick applications, quick funding, and enough working capital for your business needs.
In this article, we go over all the details of the best easy business loans, how to choose the right loan for you, and what you need to know before applying for this type of loan.
The Best Easy Business Loans
Knowing who to trust is the hardest part of the battle in finding fast small business loans. This is where we come in. Here are the top easy business loans we recommend on our Loan Marketplace. Each loan will examine your personal credit score to see if you qualify.
1. Best for Brand Recognition: Kabbage Line of Credit
Kabbage is a registered trademark of American Express, and this loan might be suitable for some borrowers who want to familiarize themselves with a lender and gain exposure. The company offers lines of credit with flexible terms and simple application.
|how much can you borrow||$1,000 to $150,000|
|What it costs||9% to 36% APR|
|Minimum credit score||675|
2. Best for One-Day Funding: OnDeck Line of Credit
OnDeck offers commercial lines of credit that can be funded in just one day. Its online application is quick and easy, and its credit score requirements are lower than some other lenders.
|how much can you borrow||$6,000 to $100,000|
|What it costs||As low as 13.99% APR. The average is 30% APR.|
|Minimum credit score||620|
3. Best for pre-qualification: Credible short-term loan
Credibly is an online lender that lets you pre-qualify before you apply, so you don’t have to worry about your credit score to find out your eligibility. You can receive funding in as little as two days.
|how much can you borrow||$10,000 – $400,000|
|What it costs||9.99% to 36% APR|
|Minimum credit score||625|
4. Best for Low Interest Rates: SmartBiz SBA Loan
If you can qualify for an SBA loan, this quick option through SmartBiz is best for low interest rates. It’s an SBA loan without as much headache, so applying is easier and the speed of funding is faster – although it can still take up to a month and requires a personal guarantee.
|how much can you borrow||$30,000 to $350,000|
|What it costs||8.27% to 9.57% APR|
|Minimum credit score||680|
5. Best for bad credit: Rapid Finance Business Cash Advance
Rapid Finance offers business cash advances, also known as merchant cash advances, to small businesses that have had difficulty qualifying for other business financing due to their credit score. No collateral is needed, but you’ll likely pay more in the long run for this type of loan.
|how much can you borrow||$5,000 to $600,000|
|What it costs||Comes with an average factor rate of 1.20 (read more about factor rates here). The overall costs depend on how risky your business is.|
|Minimum credit score||501|
What makes a business loan easy to get?
Easy business loans have lower requirements than other lenders for things like:
- Annual revenue
- Credit score
- Time spent in business
They can provide financing to small businesses quickly, often within days of applying. Traditional banks can take several months to approve and fund your business. Plus, the application process is simple and doesn’t require an excessive amount of paperwork like some traditional small business lenders.
However, you are paying for the convenience: interest rates will be much higher with an easy business loan than with a bank loan.
How to choose the right easy business loan for you
- Decide you really need the money. First, make sure your business really needs the financing, and if not, consider waiting before going into debt. Then exhaust your other options. If you don’t need to borrow with an easy business loan, it may be best not to. You may be able to save some money by going through a more traditional lender.
- Choose the right amount to borrow. Since borrowing money will cost your business money, don’t borrow more than you need. However, each lender has a cap on the total amount they are willing to lend. So you’ll want to make sure the funder can offer you enough to meet your business needs.
- Make sure monthly payments work for you. Review the repayment terms of any loan to make sure you can afford it. Review the Annual Percentage Rate (APR) and all fees to ensure you will be able to repay the full cost of financing.
- See if you qualify. Read the loan FAQ and find out details like minimum credit score and number of years in business. Make sure you have reached the goal before submitting an application.
- Apply. All of our best small business loans should have simple online loan applications that you can complete from the comfort of your home in minutes. If you’re approved for one of these options, it should only take a few business days – or less – for the funding to arrive in your business bank account.
When should you look for other options?
While it can be quick and easy to get one of these loans, it’s best not to rush into business debt. Always start your search with the lowest APR you can find, which will reduce the total cost of borrowing and your financial burden. This usually means going to more traditional lenders, like banks or credit unions. Review your credit report to see how you can improve your score.
But if you’ve been turned down by other lenders and need the cash, an alternative lender that offers easy business financing options might be great. Also, if you have an emergency in your business or come across an opportunity with a limited window of time, an easy business loan could help.
How Nav makes it easier to find the best business loan options for you
Nav is here to help you find the right financing. It’s our job. We offer options first to small business owners – our Loan Marketplace offers over 70 financing options from over 50 different lenders.
If that seems like an overwhelming number of choices, we can choose the right option for you. When you create a free Nav account, we take your goals and business data to connect your small business with the right loan. Plus, your business is 3.5 times more likely to be approved for funding when you’re connected through Nav.
How easy is it to get an SBA loan?
Yes and no. Small Business Administration (SBA) loans are an extremely common financing option because they are cheaper to borrow. They’re government backed, so they offer lower interest rates and are less dependent on your creditworthiness than many other options. And the SBA loan program aims to make it easier for small businesses to qualify than traditional bank loans.
However, the loan process can be more complicated than getting an easy business loan. For example, you will need to provide more documentation than many easy business loans, such as a business plan, bank statements and business forecast, and you will need to increase your business credit score. Read this article to learn how to establish business credit.
What is the easiest SBA loan to get?
If you’re looking for an SBA loan but don’t quite qualify, look into SBA microloans. These are best for small business borrowers who need a smaller loan amount – you can borrow a lump sum between $500 and $50,000 to improve cash flow. These SBA loans can provide financing for things like working capital, inventory, supplies, and more.
This loan may be the best option for business owners who do not meet the lending criteria of traditional financial institutions or who do not have a credit history. Interest rates are usually between 8% and 13%, which is much lower than other easy business loans. The maximum loan repayment period is six years. To apply, you will need to search the SBA website for a participating organization in your community that acts as an intermediary lender for these loans.
Our final thoughts
Easy business loans are painless for a reason. Like credit cards, they can carry a higher interest rate than traditional lenders. More interest means you pay more to borrow money. That said, if you’ve exhausted all your other options and are sure you need financing, an easy business loan can provide you with the right amount of cash in no time.
Easy business loans are fantastic vehicles for small business owners who have tried every other avenue but aren’t getting the money they need to run or grow their business.
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