Funding your business is necessary, but can be complicated. Sometimes, you just need financing fast. That’s why we compiled this list of 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 a fast application process, quick funding times, and can provide you with 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 some easy business loans we recommend from our lending partners. Each loan will look at your personal credit score to see if you qualify.
1. Best for one-day funding: Line of Credit by OnDeck
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 - $100,000 |
What it costs | As low as 29.9% APR |
Minimum credit score | 620 |
Line of Credit by OnDeck
Product Updates: No More Monthly Maintenance Fee! Monthly Payments and Extended Repayment Terms (18 and 24 month terms) NOW AVAILABLE! A line of credit can be a great asset to businesses who need capital on hand- fast. It allows you the flexibility to draw funds when you need it, and you only pay interest on what you use. Once approved, you can draw available funds quickly and easily without having to provide additional documentation.
Pros
- No monthly maintenance fees
- Monthly Payments available and Extended Repayment Terms (12, 18 and 24 months) Minimal paperwork
- As soon as same-day approval and funding sent by next business day
- Transparent pricing
- Use as much as you need, only pay interest on what you use
- Access available funds with one click.
Cons
- Not available in all states.
Funding Amount
Cost
Repayment Terms
Funding Speed
2. Best for pre-qualification: Business Cash Advance by Credibly
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 | $5,000 - $600,000 |
What it costs | Factor rates as low as 1.11 |
Minimum credit score | 625 |
Business Cash Advance by Credibly
Credibly offers flexible repayment plans with fixed rates, based on future receivables. Ideal for seasonal businesses and those with high credit card processing volumes.
Pros
- Fixed payments
- Offers the ability to pre-qualify without affecting your credit.
Cons
- Must have at least $25,000 a month in sales, Max repayment term is 15 months
Funding Amount
Cost
Repayment Terms
Funding Speed
3. Best for low interest rates: SBA Loan by SmartBiz
If you can qualify for an SBA loan, this quick option through SmartBiz is best for low interest rates. It’s an SBA loan with less 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 - $500,000 |
What it costs | 11.25% - 13.25% APR |
Minimum credit score | 680 |
SBA Loan by SmartBiz
For high cost projects with long repayment. No immediate funds needed.
Pros
- APR as low as 11.25% with monthly repayment plans up to 10 years
- Ability to be pre-approved and review terms and conditions before needing to provide a full list of financial documents.
Cons
- Lengthy application process (30-60 days) with lower approval odds
- Requires more documents than other Bank Loan products.
Funding Amount
Cost
Repayment Terms
Funding Speed
4. Best for bad credit: Business Cash Advance by Rapid Finance
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-$600,000 |
What it costs | 1.20 Average Factor Rate (read more about ). Overall costs depend on how risky your business is. |
Minimum credit score | 501 |
Business Cash Advance by Rapid Finance
A viable option for businesses looking for growth capital up to $600,000. Costs will vary based on your risk profile. This is a good product to get your foot in the door with a lender, with growth opportunities with Rapid Finance’s other products
Pros
- Application is quick and easy
- Receive funds within hours of approval
- No business lien placed
- No application fee
- Can get approved for both a line of credit and term loan and accept both at the same time
- Flexible repayment options.
Cons
- Loan amounts are based on monthly revenue.
Funding Amount
Cost
Repayment Terms
Funding Speed
5. Best for no credit check: Line of Credit by Plexe
If you can qualify for an SBA loan, this quick option through SmartBiz is best for low interest rates. It’s an SBA loan with less 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 | $10,000 - $250,000 |
What it costs | 2% Draw Fee; 4%-22% simple interest |
Minimum credit score | Based on income |
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 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.
You may also consider using business credit cards or a business line of credit to help you with your cash flow. You can use a business credit card to pay for everyday expenses to help you open up money for other purposes. There are some cards available that can help you build your business credit scores, which can help your business qualify more easily for business loans or other financing. Of course, interest rates and APRs for credit cards can be much higher than other financing if you don’t pay your balance every month, so be aware of the cost when you use them.
Let’s find the right loan for your business
Nav serves nearly every kind of business, and our experts will match you to the right fit for your business needs.
How Nav makes it easy to find the best business loan options for you
Nav is here to help you find the right financing. Based on your business’s specific needs and data, we put you in touch with your best options — we partner with over 50 different lenders who offer more than 70 financing options to small businesses across the U.S.
If that feels like an overwhelming number of choices, we can help pick the right option for you. When you create a 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.
Frequently asked questions
What is the easiest SBA loan to get approved for?
SBA microloans can be easier to qualify for than other SBA loans. These loans are generally managed by nonprofit lenders who follow guidance from the SBA to determine who qualifies. Always check with lenders to determine rates and qualifications.
What proof do you need for a small business loan?
For most small business loans, you’ll need to provide proof of your business activities and finances. This can include bank statements, financial reports, or tax returns. You should also be ready to supply your business plan and be ready for the lender to check your creditworthiness via your personal and business credit reports. It’s a good idea to know how much money you want to borrow and be able to explain what you plan to do with it. Always check with your specific lender regarding qualifications and what documentation they need to approve your loan.
Is PPP money still available?
No. As of May 31, 2021, the Paycheck Protection Program has ended. However, if you previously received a PPP loan, you may still be able to get forgiveness on repayments. You can learn more at SBA.gov.
What do you need for a first time business loan?
The first time you apply for a small business loan, you’ll want to make sure you have your:
- Business credit scores
- Personal credit scores
- Business financial information (tax returns, financial statements, bank statements from your business bank account)
- Business plan
The stronger these statements are, the better. For instance, you’re more likely to qualify for a business loan if you have high personal and business credit scores. Also, you’ll be more likely to get better repayment terms and lower interest rates. Showing that you have strong financials with high, consistent annual revenue and a longer business history can also help you qualify. Of course, if you don’t have great financials, a good business plan showing how you’ll improve can bolster your qualifications, too.
You may also want to be ready to provide collateral or a down payment for some types of loans. This helps lenders trust that you’ll be able to pay them back.
How can I start my own business with no money?
There are many ways to start a business without any money or capital. Some common methods include:
- Bootstrapping or self-funding — using your personal money or borrowing from friends and family to start your business
- Crowdfunding — getting others to donate money to your business, often by rewarding them with special products or services or with equity in your business
- Microloans — smaller loan amounts meant for businesses who don’t need a lot of capital to get started
- Startup loans — these loans are meant for businesses that don’t have a long business history and may come with higher interest rates and shorter repayment terms
- Venture capital or angel investors — while usually reserved for big-idea companies that need a lot of capital to get started, this can be a great way to fund your business by selling equity to investors who believe in your ideas
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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Tiffany Verbeck
Digital Marketing Copywriter, Nav
Tiffany Verbeck is a Digital Marketing Copywriter for Nav. She uses the skills she learned from her master’s degree in writing to provide guidance to small businesses trying to navigate the ins-and-outs of financing. Previously, she ran a writing business for three years, and her work has appeared on sites like Business Insider, VaroWorth, and Mission Lane.