Small business loans, structured to fit.
Term loans for growth. Lines of credit for working capital. Equipment financing for capex. The marketplace matches your business profile to the right lender.
Small business lending is more fragmented than any consumer loan category. A florist with $400,000 in revenue, a SaaS company with $1.2M ARR, and a contractor with $80,000 in quarterly receivables all need fundamentally different products — and different lenders specialize in each segment. The result: shopping is harder and the spread between best and worst available rates is wider. LendingsTree's small-business marketplace matches your business profile to the lenders whose underwriting fits, so you compare offers from lenders who actually want your business.
Five product types worth knowing.
Unlike consumer loans, business loans aren't one-size-fits-all. Picking the right product is half the work. Through the LendingsTree network you can compare:
Term loans. Lump sum at closing, fixed monthly payment, defined term (typically 1–10 years). The classic structure for funding growth investments — expansion, hiring, large equipment purchases.
Business lines of credit. Revolving line you draw from as needed. Pay interest only on what you've drawn. Best for working capital, inventory cycles, or covering AR/AP timing gaps.
SBA-style loans. SBA-guaranteed loans (7(a), 504, microloans) carry favorable terms but slower underwriting. The marketplace also includes lenders offering SBA-style products without the direct SBA backing — similar terms, sometimes faster process.
Equipment financing. The equipment itself secures the loan, which lowers the rate and simplifies approval. Used for vehicles, machinery, kitchen build-outs, IT infrastructure.
Invoice factoring / merchant cash advance. Faster funding (often within days) but more expensive. Used by businesses with strong revenue but limited credit history or collateral. Read the terms carefully — effective APR can exceed 50%.
Business loan use cases
Working capital
Cover payroll, rent, inventory during seasonal slowdowns. A line of credit is usually the right structure — draw only what you need, when you need it.
Expansion or new location
Second store, new warehouse, geographic expansion. Term loan (3–7 year) is the standard fit — lump sum, predictable payment.
Equipment purchase
Vehicles, machinery, kitchen build-out, IT infrastructure. Equipment financing lets the equipment itself secure the loan — better rate, simpler approval.
Inventory buildup
Stocking up before a seasonal peak (retail, hospitality, agriculture). Short-term loan or line of credit, repaid as the inventory sells through.
Acquisition
Buy another business, buy out a partner. SBA 7(a) is often the right structure — longer term, lower rate, but slower underwriting.
Bridge financing
Cover a gap while waiting on a larger transaction (sale of equipment, contract payment, refinance). Short-term loan, higher rate, paid off when the larger event closes.
What business lenders evaluate
Business loan underwriting is more involved than consumer lending because the lender is evaluating an organization, not just an individual. Expect to provide:
- Time in business: Most lenders require 1–2 years minimum. Some specialty lenders work with newer businesses but at higher rates. SBA programs typically require 2+ years.
- Revenue: Annual revenue thresholds vary — $100K minimum for small online lenders, $500K+ for many bank programs. Strong revenue offsets weaker credit.
- Personal credit score: Owners' personal credit still matters — especially for small businesses without long credit histories. 680+ is comfortable; 720+ unlocks the best pricing.
- Business credit score: Dun & Bradstreet PAYDEX, Experian Intelliscore, Equifax Business. Many small businesses don't have established business credit, which is fine but means lenders lean harder on personal credit.
- Bank statements and financials: Last 6–12 months of business bank statements, profit-and-loss statement, balance sheet. Larger loans require accountant-prepared or audited financials.
- Personal guarantee: Most small business loans require the owner(s) to personally guarantee the loan — meaning if the business defaults, the lender can come after personal assets.
- Collateral: Equipment, real estate, accounts receivable, or business assets. Required for larger loans; sometimes optional for smaller amounts.
The marketplace soft-pulls personal credit only at the comparison stage. Full underwriting (including business documentation and a hard pull) only happens after you choose a specific lender to formally apply with.
Small business loan rate ranges
Ranges below are illustrative only. Your actual offer depends on your credit, income, state, and the lender's individual criteria. The marketplace shows real prequalified offers — these tables just help you set expectations.
| Credit Profile | Score | Typical APR Range | Notes |
|---|---|---|---|
| Strong (720+ personal, 2+ yr, $1M+ rev) | Top-tier | 6.99%–12% | SBA, bank, and prime online lenders |
| Good (680–719, 2+ yr, $300K+ rev) | Standard | 10%–20% | Most online lenders compete |
| Fair (640–679, 1+ yr, $100K+ rev) | Subprime small biz | 18%–35% | Higher-cost specialty lenders |
| Below 640 or newer business | Alternative | Cash advance / factoring | Effective APR can exceed 50% — read terms |
Illustrative ranges — not an offer of credit. Actual rates set solely by the individual lender.
Small Business Loans — FAQ
Authoritative sources
For deeper research, these are the primary sources we cross-reference:
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