New businesses need to go somewhere to get funding to ensure their businesses operate efficiently. The best place to get funding for your new business is to apply for a small business loans online. The business loans may require collateral and frequent repayment especially when you have low credit score. The following are the top 5 small business loans.
1. Credibility Capital
Credibility Capital offers loan amount from $10K to $350K with APR interest starting from 10% – 25%. The average loan amount that most people borrow from them is $75,000. It does not charge any prepayment fee and you can pay back the loan via automatic monthly payment. Borrowers are required to have a credit score of at least 650. The maximum repayment term for the loan is 3 years. UCC-1 filling is necessary if you want to apply a loan from Credibility Capital.
2. SBA Community Advantage
SBA Community Advantage is a special SBA 7(a) loan designed for startup companies. It offers the same low interest rate as the standard 7(a) loans. It provides loan amount of up to $250,000 and the maximum interest rate is 10.5%. Credit scores and other factors that are used to gauge the applicant is not as strict as the bank. You can be considered for the loan if your credit score is 575 or above. The loan can be used for all kinds of purposes by startup company including working capital and real estate. The only criteria is that your business must be commercial and located in the US.
QuarterSpot offers unsecured business loans of up to $200K without any requirement for collateral. You can apply for a business loan from QuarterSpot even if you have a credit score as low as 550. Your business must be operate for at least 1 year and you must have an annual income of at least $200,000 in order to apply for a loan. Every month, you must make at least 10 sales. You also need to maintain a minimum of $2,000 in your daily bank account balance. The loan requires daily or weekly repayment. The origination fee is 6% of the loan.
Fundation offers loans of up to $500,000 for small businesses with good credit score of at least 620. Borrowers are only required to make repayment two times per month. This is good for startups who cannot afford to operate efficiently as they are obliged to pay back daily and weekly. Fundation business loans has a few requirements including minimum revenue of $100,000, minimum of 1 year in operation, and have at least 3 employees.
5. Lending Club
Lending Club offers secured loans of more than $100,000 with loan term length of 1 – 5 years for small businesses. The minimum personal guarantee is 20% of the loan amount. Lending Club will not approve borrowers who file for bankruptcy in the past 3 years. You have to make monthly repayment for the business loan. If you borrow less than $15,000, you can submit lesser documentation. It does not charge any prepayment penalty fee.