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With so many start up business loans available these days, choosing the best one for your business can be a daunting task. In this article, you will discover the top 20. These loans are tailored to meet the diverse needs of new businesses, offering a range of options from traditional term loans to innovative lines of credit. Each of these start up business loans has been carefully evaluated to provide you with a comprehensive guide, ensuring that you find a loan that aligns perfectly with your business’s financial needs and goals.
In today’s competitive business environment, securing the right financing can be the key to unlocking growth and stability. Each of these start up business loans come with its own set of features, advantages, and conditions, catering to a wide spectrum of business requirements and financial situations. From government-backed loans offering favorable terms to quick and flexible fintech solutions, these start up business loans present a variety of pathways to secure essential funding. The depth and breadth of options available mean that, regardless of your business model or industry, there is likely a loan option among these 20 best start up business loans that can help fuel your entrepreneurial aspirations.
Here are the top 20 Start up Business Loans in the US
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SBA Loans Start up Business Loans
SBA (Small Business Administration) Loans are government-backed loans designed to help small businesses get started and grow. They offer several loan programs, each tailored to specific business needs. The most popular is the 7(a) loan program, known for its flexibility and lower interest rates. These loans are ideal for businesses looking for long-term financing solutions.
Start up business loans features:
- Loan Amounts: Up to $5 million
- Starting Interest Rate: Varies, typically 6-9%
- Term Length: Up to 25 years
- Minimum Credit Score: 680
- Minimum Time in Business: Not specified, but business plan required
- Pros: Low-interest rates, long repayment terms
- Cons: Lengthy application process, collateral may be required.
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Kabbage Business Line of Credit
Kabbage, a fintech company, provides flexible lines of credit to small businesses. They are known for their fast, automated approval process and accessibility to a variety of businesses, including start-ups. Kabbage’s platform allows quick access to funding, making it suitable for businesses needing immediate cash flow.
Start up business loans features:
- Loan Amounts: Up to $250,000
- Starting Interest Rate: 1.5-10%
- Term Length: 6, 12, or 18 months
- Minimum Credit Score: 640
- Minimum Time in Business: 1 year
- Pros: Quick funding, no collateral required
- Cons: Higher interest rates, short repayment terms.
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OnDeck Start up Business Loans
OnDeck is a leading online small business lender offering both term loans and lines of credit. They are recognized for their quick application and decision process, making them a popular choice for businesses needing rapid access to funds. OnDeck caters to a range of small businesses with various credit profiles.
Start up business loans features:
- Loan Amounts: Up to $500,000
- Starting Interest Rate: As low as 9%
- Term Length: 3-36 months
- Minimum Credit Score: 600
- Minimum Time in Business: 1 year
- Pros: Fast approval and funding
- Cons: High interest rates, daily or weekly repayment schedule.
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BlueVine Start up Business Loans
BlueVine offers small businesses financial solutions such as lines of credit and invoice factoring. Their services are particularly useful for managing cash flow and bridging short-term gaps in revenue. BlueVine is known for its straightforward application process and quick decision-making.
Start up business loans features:
- Loan Amounts: Up to $250,000
- Starting Interest Rate: 4.8%
- Term Length: 6 or 12 months
- Minimum Credit Score: 600
- Minimum Time in Business: 6 months
- Pros: Fast funding, simple application process
- Cons: Not available in all states, weekly repayments.
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Fundbox Start up Business Loans
Fundbox is a financial platform offering business lines of credit. They are ideal for small businesses looking for short-term financing solutions. Fundbox is known for its user-friendly interface, quick approval process, and flexible credit requirements, making it accessible to a wide range of businesses.
Start up business loans features:
- Loan Amounts: Up to $150,000
- Starting Interest Rate: 4.66%
- Term Length: 12-24 weeks
- Minimum Credit Score: 500
- Minimum Time in Business: 6 months
- Pros: Low credit score requirement, fast approval
- Cons: High fees, short repayment terms.
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LendingClub
LendingClub is a peer-to-peer lending platform offering personal and business loans. They facilitate loans for a variety of purposes, including business expansion and start-up costs. LendingClub is recognized for its streamlined online application process and the ability to cater to businesses with diverse financial needs.
Start up business loans features:
- Loan Amounts: Up to $500,000
- Starting Interest Rate: 4.99%
- Term Length: 1-5 years
- Minimum Credit Score: 580
- Minimum Time in Business: 2 years
- Pros: Competitive rates, longer-term lengths
- Cons: Strict eligibility requirements, origination fee.
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Accion Start up Business Loans
Accion is a global nonprofit organization providing microloans to small businesses, with a focus on minority and women entrepreneurs. They offer customized lending solutions, often catering to businesses that may not qualify for traditional loans. Accion is known for its mission-driven approach and support for underserved business owners.
Start up business loans features:
- Loan Amounts: Up to $250,000
- Starting Interest Rate: Varies
- Term Length: Up to 5 years
- Minimum Credit Score: 575
- Minimum Time in Business: Varies
- Pros: Flexible criteria, focuses on underserved entrepreneurs
- Cons: Varies by region, can be slow to fund.
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Credibility Capital
Credibility Capital offers term loans to small and medium-sized businesses. They are known for their transparent terms and competitive interest rates. Credibility Capital is suitable for businesses with a strong credit history looking for affordable financing options.
Start up business loans features:
- Loan Amounts: Up to $350,000
- Starting Interest Rate: 6.99%
- Term Length: 1-3 years
- Minimum Credit Score: 650
- Minimum Time in Business: 2 years
- Pros: No prepayment penalties, transparent terms
- Cons: Not available in all states, high credit score requirement.
StreetShares is a lender that specializes in small business funding, particularly for veteran-owned businesses. They offer term loans, lines of credit, and contract financing. StreetShares is known for its commitment to supporting the veteran business community and competitive lending solutions.
Start up business loans features:
- Loan Amounts: Up to $250,000
- Starting Interest Rate: 8%
- Term Length: 3 months to 3 years
- Minimum Credit Score: 600
- Minimum Time in Business: 1 year
- Pros: Veteran-focused, competitive rates
- Cons: Requires a personal guarantee, not for high-risk industries.
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Funding Circle
Funding Circle is a peer-to-peer lending platform offering term loans to small businesses. They are known for their straightforward application process and quick funding times. Funding Circle is an excellent choice for businesses seeking competitive rates and various loan amounts.
Start up business loans features:
- Loan Amounts: Up to $500,000
- Starting Interest Rate: 4.99%
- Term Length: 6 months to 5 years
- Minimum Credit Score: 660
- Minimum Time in Business: 2 years
- Pros: Competitive rates, no prepayment penalty
- Cons: Requires collateral, not for new businesses.
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SmartBiz Start up Business Loans
SmartBiz specializes in streamlining the SBA loan application process. Their platform is designed to make obtaining government-backed loans more accessible and efficient for small businesses. SmartBiz’s services are particularly beneficial for businesses seeking long-term financing with competitive rates.
Start up business loans features:
- Loan Amounts: $30,000 to $5 million
- Starting Interest Rate: 4.75%
- Term Length: 10 to 25 years
- Minimum Credit Score: 650
- Minimum Time in Business: 2 years
- Pros: Long-term loans, SBA-backed
- Cons: Requires strong financial history, not for very new businesses.
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Taycor Financial
Taycor Financial is a full-service financial institution offering a range of financial products including equipment financing and working capital loans. They cater to a wide spectrum of industries and are known for their flexible lending solutions tailored to specific business needs.
Start up business loans features:
- Loan Amounts: Varies based on needs
- Starting Interest Rate: Varies
- Term Length: Varies
- Minimum Credit Score: Varies
- Minimum Time in Business: Varies
- Pros: Flexible financing options, caters to a wide range of industries
- Cons: Varies based on individual business profiles.
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National Funding Start up Business Loans
National Funding provides customized financial solutions to small businesses, including equipment financing and working capital loans. Known for their high approval rates and fast funding, they cater to businesses that might not qualify for traditional bank loans.
Start up business loans features:
- Loan Amounts: Up to $500,000
- Starting Interest Rate: Varies
- Term Length: 6 months to 5 years
- Minimum Credit Score: Not strictly specified
- Minimum Time in Business: 6 months
- Pros: High approval rate, fast funding
- Cons: Potentially high interest rates, fees may apply.
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altLINE Start up Business Loans
altLINE, operated by The Southern Bank Company, offers invoice factoring services to small businesses. This solution is ideal for businesses with cash flow challenges due to unpaid invoices. altLINE stands out for its transparency and competitive factoring rates.
Start up business loans features:
- Loan Amounts: Up to $5 million
- Starting Interest Rate: Varies based on invoices
- Term Length: Flexible
- Minimum Credit Score: Not strictly specified
- Minimum Time in Business: Not specified
- Pros: Improves cash flow, no long-term commitment
- Cons: Only applicable for businesses with invoice receivables.
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Fora Financial
Fora Financial offers merchant cash advances and small business loans. They are known for their straightforward application process and quick funding, making them a suitable option for businesses in need of rapid financial support.
Start up business loans features:
- Loan Amounts: Up to $500,000
- Starting Interest Rate: Varies
- Term Length: Up to 15 months
- Minimum Credit Score: 500
- Minimum Time in Business: 6 months
- Pros: Quick funding, minimal eligibility requirements
- Cons: Higher costs compared to traditional loans.
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Headway Capital
Headway Capital provides lines of credit to small businesses. They offer a flexible approach to borrowing, allowing businesses to draw funds as needed. Headway Capital is suitable for businesses seeking accessible and manageable financing options.
Start up business loans features:
- Loan Amounts: Up to $100,000
- Starting Interest Rate: Varies
- Term Length: 12 to 24 months
- Minimum Credit Score: 560
- Minimum Time in Business: 1 year
- Pros: Flexible credit lines, easy online management
- Cons: Higher fees, limited maximum loan amount.
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Biz2credit Start up Business Loans
biz2credit provides a range of financial products including working capital loans and lines of credit. Their platform connects small businesses with various lenders, offering a streamlined application process and personalized financing solutions.
Start up business loans features:
- Loan Amounts: Up to $2 million
- Starting Interest Rate: Varies
- Term Length: 6 months to 3 years
- Minimum Credit Score: 575
- Minimum Time in Business: 6 months
- Pros: Wide range of loan products, quick funding
- Cons: Varies by lender, fees may apply.
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Lendio Start up Business Loans
Lendio is a loan marketplace that connects small businesses with multiple lenders. They offer a variety of loan products including SBA loans, term loans, and lines of credit. Lendio’s platform is ideal for businesses seeking to compare different loan options.
Start up business loans features:
- Loan Amounts: Up to $2 million
- Starting Interest Rate: Varies
- Term Length: Varies
- Minimum Credit Score: 560
- Minimum Time in Business: 6 months
- Pros: Access to multiple lenders, variety of loan products
- Cons: Terms and rates vary by lender.
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American Express® Business Line of Credit
American Express offers a business line of credit known for its flexibility and reliability. Suitable for existing American Express cardholders, this option provides a convenient way to manage cash flow and unexpected expenses.
Start up business loans features:
- Loan Amounts: Up to $750,000
- Starting Interest Rate: Varies
- Term Length: Revolving
- Minimum Credit Score: Varies
- Minimum Time in Business: 2 years
- Pros: Flexible credit line, integration with Amex services
- Cons: Only available to Amex cardholders, requires strong credit history.
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LendingTree
LendingTree is an online loan marketplace that connects borrowers with multiple lenders. They offer a variety of financing options including business loans and lines of credit. LendingTree’s platform allows businesses to compare loan offers, helping them find the best deal.
Start up business loans features:
- Loan Amounts: Varies
- Starting Interest Rate: Varies
- Term Length: Varies
- Minimum Credit Score: Varies
- Minimum Time in Business: Varies
- Pros: Compare multiple loan offers, variety of financing options
- Cons: Terms and rates vary by lender, may involve multiple credit inquiries.
As we conclude our exploration of the 20 best start up business loans, it’s evident that the right financing can act as a catalyst for business growth and success. These loans not only provide the necessary capital to kickstart or expand your business but also come with terms and conditions that can accommodate the unique challenges faced by startups. The diversity and flexibility found in these start up business loans ensure that entrepreneurs can find a fitting solution, whether it’s for managing cash flow, purchasing equipment, or fueling expansion. It’s essential for business owners to meticulously assess their needs and choose from these business loans, as the right financing partner can make all the difference in the competitive world of business.
