Top 15 Small Business Loans

As a small business owner or an entrepreneur, securing working capital can be a challenge. Especially since the Great Recession, banks have been more stringent than ever with lending requirements. However, these 15 online non-bank lenders (listed in alphabetical order), provide alternatives for enterprising commercial borrowers.

Balboa Capitalbalboa capital

Whether you need major equipment leasing, merchant cash advances or conventional business loans, Balboa Capital has you covered. Interest rates vary according to the type of loan applied for, loan amount and borrowers’ credit rating. Merchant cash advances are often deposited the same day; business loans may require up to 5 business days for processing. Interest for secured loans generally ranges from 4 to 8 percent; interest for nonsecured loans is often higher.

CAN Capitalcan capital

CAN Capital has been in operation since 1998 and has provided nearly 140,000 loans to small and medium-sized businesses. CAN Capital uses a unique risk assessment underwriting formula to determine its credit decisions – often approving business owners who have been turned down elsewhere. The approval process can be approved in 15 minutes; approved borrowers receive their funds within 3 business days. Interest rates vary from about 50 to 158.4 percent.


Dealstruck is a peer-to-peer lender for established businesses that fall just a bit short of qualifying for conventional bank loans. Borrowers may obtain business term loans, revenue secured loans and asset based lines of credit. Prospective borrowers must have been in business for at least a year and have annual sales of 250,000 dollars or more. Borrowers post a profile that remains on the platform for 30 days. Funds are distributed only if the profiles are fully funded. Interest rates range from 10 to 38 percent.


As a direct lender, Fundation is backed by large investment groups, including LeoGroup, Solel and Garrison. Fundation uses a proprietary risk assessment model that allows possible approval for borrowers turned down by banks. Borrowers can receive a response within minutes and there are no prepayment penalties. Interest rates vary according to borrowers’ credit profiles but can range from 7.99 to about 15 percent.

Funding Circlefunding circle

Funding Circle allows small business owners and accredited investors and institutions to interact directly to negotiate loans. Borrowers are assigned a lending risk ranging from A+ to C, and loans are secured by business assets and a personal guarantee from prospective borrowers. Interest rates range from 8.99 to 20.99 percent based on borrowers’ credit rating. Origination fees range from 2.99 to 4.5 percent.


Fundivo operates as a loan broker that submits borrower information to a pre-screened group of lenders. Borrowers choose from potential offers and negotiate final terms with lenders through Fundivo’s loan specialists. Interest rates vary by borrowers’ credit rating but range from 7 to 25 percent. There are no application fees.


Based in Atlanta, Kabbage provides cash advances for small business owners and entrepreneurs. Businesses must provide information from payment platforms such as PayPal or Etsy in addition to conventional banking information and tax returns. Kabbage charges monthly fees of 1 to 13 percent for the first two months, and 1 percent for the remainder of the loan term, which is the equivalent of about 40 percent APR. However, there are no prepayment penalties.


As a nonprofit micro lender, Kiva provides loans through various micro lenders worldwide. Borrowers within the United States may borrow through the Kiva Zip program to start a business or expand an existing business. Interest rates for Kiva loans range from 20 to 40 percent.

LendingClublending club

Although LendingClub is best known as a peer-to-peer lender for personal loans, business owners and entrepreneurs may also use the platform. Applicants submit a prequalification questionnaire to LendingClub; approved borrowers receive preliminary offers from lenders. After submitting an online application and data verification form, funds are deposited to borrowers’ bank accounts within 7 days. Interest rates range from 6.78 to 29.99 percent – depending on borrowers’ credit profiles.

Newtek Small Business Loansnewtek

Newtek offers three types of funding for small and medium-sized businesses: term loans, merchant cash advances and accounts receivable management. Loan amounts and interest rates vary according to the type and amount of loan business owners seek. Businesses that have been in operation for 10 years or longer and that can provide collateral – including commercial real estate have the best odds of being approved.


OnDeck is an online direct lender that specializes in loans for small and medium-sized businesses. OnDeck uses a proprietary underwriting system that determines credit decisions based on business performance, not the personal credit of prospective borrowers. Applicants receive a decision within minutes and approved borrowers receive their funds the next business day. Interest rates range from 8 to 39 percent.

PayPal Working Capitalpaypal

PayPal Working Capital provides cash advances through a program called PayPal Working Capital. Companies with established PayPal accounts can apply for a loan with a single flat fee; others receive loans with periodic interest payments based on a percentage of daily sales, with no fees charged on days with no sales. Costs range between 3 to 11 percent of the total loan amount.


Prosper is one of the largest peer-to-peer lending marketplaces in the United States. They provide customers who have good credit with a fast way to borrow money at low fixed interest rates. The company is based in San Francisco, California, has more than 2.2 million members and has furnished over $2 billion in loans. Prosper provides borrowers with an attractive alternative to conventional banks and credit cards. The interest rates are competitive, the approval rates are fast and the money is directly deposited in your account. Interest is based on the current loan balance, so there is no penalty for paying the loan early.

SBA.govsba provides loans for small and mediums sized business owners through a network of lending partners. There are two main lending programs: the SBA-504 for loans up to about 20 million dollars or more and the SBA-7(a) for loans up to 5 million dollars. Interest rates vary and are based on the London Interbank One Month Prime (LIBOR) plus 3 percent and an additional SBA peg of 2.25 percent for loans with a term of less than 7 years and 2.75 percent for loans with a term of more than 7 years. The SBA also charges fees of up to 3.75 percent for loans totaling more than 150,000 dollars.