If you have a small business, sometimes it can be difficult to pay the bills or other expenses for you. Or when you want to expand your business small businessloans are the best option for you. However before choosing a loan in a rush, you should review all of the pros and cons of the lenders because getting a loan as a small business is not a very easy decision to be done.
There are three types of business loans that you can get for your company. You can borrow through your credit card, lines of credit or you can get fixed loans. If you want to invest capital on something such as new equipment or real estate a fixed term loan is definitely best one for you because you can pay every month while you are earning capital over this new equipment or real estate. If you need capital for your regular payments, a line of credit may be the best one. You can get capital from the pool anytime you want according to your limit.
Interest rates can change according to your payment option. When you want to pay in a long term with small amounts every month your total debt will be higher. However if you pay in a short term with high amounts every month, of course your total debt will be low. These are all about the interest rates. In addition to that, you should be aware of that your business has also credit score in the banks. Some banks may ask for your company and tax papers to check your credit score. Sometimes in high amount of loans your credit score may not be enough. In those situations banks might search your company background.
Below, you can find useful short information about 7 lenders for small business loans. It may help you to make your mind up in terms of the amount you want and interest rates that you will be face.
Funding Circle: Funding Circle offers minimum 25.000$ to 500.000$ loans. Payment options are minimum 6 month and maximum 5 year terms. Rates are between 4.99% and 27.79%.
Credibility Capital: Capital asks minimum 650 credit score. Minimum amount is 10.000$ and maximum amount is 400.000$. Rates are between 8% and 20%.
OnDeck Capital: If you have 500 credit score OnDeck Capital can help you with that score. Minimum amount is 5.000$ but maximum is 500.000$. The bad thing about OnDeck Capital is that they have very high interest rates. They give rates according to credit score.
Kabbage: Kabbage wants to work with the companies which have 50.000$ annual revenue. Also your last three months should be over 4.200$. If you can meet these needs, you will get the loan up to 250.000$ with very low interest rates between 1.5% and 10%.
FundBox: This lender want minimum 25.000 annual revenue minimum or your business must be 6 months old. Minimum limit is 1.000$ and maximum is 100.000$. The rates are between 4.66% and 8.99%.
Lending Club: Lending Club asks for minimum 600 credit score. The amount limits are between 5.000$ and 300.000$ and the interest rates are between 1.99% and 8.99%.
SmartBiz: SmartBiz is related with the government. The amounts are between 30.000$ and 5 million $. Repayment terms are between 10 and 25 years. The interest rates are between 6.75% and 9.00%.