Business financing ranges from bank term loans and government-backed loans to online lines of credit, invoice factoring and merchant cash advances. The cost of capital varies enormously between products, so compare the annual percentage rate (APR) and total repayment, not just the monthly payment.
Faster approval usually means higher cost. If you can wait a few weeks, bank and government-guaranteed programmes are typically cheapest; online lenders trade higher rates for speed and lighter paperwork.
What to look for
- Online application with soft credit check
- Lines of credit you draw as needed
- Invoice financing against receivables
- Equipment financing
- Government-backed loan programmes
- Transparent APR and repayment schedules
How pricing works
- Interest rate or factor rate plus origination fees
- Merchant cash advances use factor rates that can equal very high APRs
- Prepayment penalties or fees on some products
- Personal guarantees and collateral are common
Model three-year cost with our total cost of ownership calculator.
Commonly evaluated Business Loans & Financing providers
Selected by our editors as a starting point — not ranked, and not paid placements. Ratings appear only after genuine reviews pass moderation.
Bluevine
OnDeck
Funding Circle
Fundbox
Lendio
U.S. SBA loan programmes
Questions to ask every vendor
- What is the APR and total repayment amount, including all fees?
- Is there a prepayment penalty?
- Is a personal guarantee or lien required?
- Does checking my rate affect my credit score?
- How often are payments taken — daily, weekly or monthly?
Red flags
- Quoting a factor rate without an APR
- Upfront fees before approval
- Daily repayments that strain cash flow
- Pressure to sign the same day
Frequently asked questions
What credit score do I need for a business loan?
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- The hidden costs of SaaS: total cost of ownership explained
Editorial content written by the BusinessReviews.com team following our editorial policy. Vendor names are trademarks of their owners. Verify current pricing and features with each vendor.