Funding your business is necessary, but can be tricky. That’s why we compiled this list of our favorite business loans that make it easier to qualify than traditional bank loans. If you’re a new business, an entrepreneur, or a startup that is struggling to get funding, we have you covered. The right easy loan has fast 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 to be aware of before applying for this type of loan.
The Best Easy Business Loans
Knowing who to trust is the hardest part of the battle when finding quick small business loans. That’s where we come in. Here are the top easy business loans we recommend from our lending marketplace. Each loan will look at 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 fit some borrowers who want familiarity and name recognition with a lender. The company offers lines of credit with flexible terms and a simple application.
|How much you can 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 business lines of credit that can be funded in as fast as one day. Its online application is easy and quick, and its credit score requirements are lower than some other lenders.
|How much you can 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 Prequalification: Credibly Short-Term Loan
Credibly is an online lender that allows you to pre-qualify before applying, so you don’t have to take a ding to your credit score to find out your eligibility. You can receive funding in as little as two days.
|How much you can 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 of a headache, so the application is simpler and the funding speed is faster — although it can still take up to one month and requires a personal guarantee.
|How much you can 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 called a merchant cash advance, to small businesses that have had a hard time qualifying for other business funding because of their credit score. There’s no collateral needed, but you will probably pay more in the long run for this type of loan.
|How much you can borrow||$5,000 to $600,000|
|What it costs||Comes with a 1.20 average factor rate (read more about factor rates here). 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
- Time in business
They can provide small business financing quickly—often within a few days of applying. Traditional banks can take several months to approve and fund your business. Also, the application process is simple and doesn’t require excessive amounts of paperwork like some traditional small business lenders.
However, you pay for the convenience: Interest rates are going to be much higher with an easy business loan than with a bank loan.
How to Choose the Right Easy Business Loan for You
- Decide that you really need the money. First, make sure your business actually needs the funding, and if not, consider waiting to take out 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 might be able to save money by going through a more traditional lender.
- Pick 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 for the total amount they’re willing to lend. So you’ll want to make sure the funder can offer you enough for your business needs.
- Make sure the monthly payments work for you. Look into any loan’s repayment terms to make sure you can afford it. Tune into the annual percentage rate (APR) and all the fees to ensure you’ll be able to pay back the total cost of the funding.
- See if you qualify. Read over the FAQs for the loan and figure out details like minimum credit score and years in business. Make sure you hit the mark before sending in 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 a few short minutes. If you’re approved for any of these options, it should only take a few business days — or less — for funding to arrive in your business bank account.
When Should You Look for Other Options?
Even though it may 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 lower the total cost of borrowing and your financial burden. This usually means going to more traditional lenders, like banks or credit unions. Look over your credit report to see how you can improve your score.
But if you have been denied by other lenders and you need the money, an alternative lender that offers easy business financing options could be great. Also, if you have an emergency at your business or stumble upon an opportunity with a limited time window, an easy business loan could help you out.
How Nav Makes It Easy to Find the Best Business Loan Options for You
Nav is here to help you find the right financing. That’s our job. We first provide small business owners with options — our lending marketplace has over 70 financing options from more than 50 different lenders.
If that feels like an overwhelming number of choices, we can pick the right option for you. When you create a free Nav account, we take your goals and your business data to connect your small business with the right loan. Plus, your business is 3.5x more likely to get approved for financing when you get matched through Nav.
Is It Easy to Get an SBA Loan?
Yes and no. Small Business Administration (SBA) loans are an extremely common funding option because they’re less expensive to borrow. They’re backed by the government, so they provide lower interest rates and depend less on your creditworthiness than many other options. And the SBA loan program aims to make it easier for small businesses to qualify when compared to traditional bank loans.
However, the loan process can be more complicated than getting an easy business loan. For example, you’ll need to provide more documentation than many easy business loans require, like a business plan, bank statements, and a business forecast, and you’ll need to build up your business credit score. Read this article for how to establish business credit.
What Is the Easiest SBA Loan to Get?
If you’re in the market for an SBA loan but can’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 of between $500 and $50,000 to improve cash flow. These SBA loans can provide funding for things like working capital, inventory, supplies, and more.
This loan may be the best option for business owners who don’t meet the lending criteria of traditional financial institutions, or who are lacking in credit history. Interest rates typically fall between 8% and 13%, which is much lower than other easy business loans. The maximum amount of time you can get to repay the loan is six years. To apply, you’ll 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 the money. With that said, if you have exhausted all of your other options and you are sure you need funding, an easy business loan can provide you with the right amount of cash flow in a short amount of time.
Easy business loans are fantastic vehicles for small business owners who have tried all other avenues but aren’t getting the money they need to run or grow their businesses.
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