Best Small Business Loans Online: LendingTree vs Lending Club vs Kabbage vs OnDeck vs Funding Circle & More

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Attention small business owners: Do you have an urgent need to fill your inventory? Purchase equipment? Pump up your marketing campaign? Hire another employee? You’re in funding luck these days, thanks to the many websites that cater to small business loans online.

With the decline of smaller community banks, it’s harder than ever for you, as a business owner, to obtain the financing you need to keep your business up and running — and successful.

Article Overview

Online vs Traditional Small Business Bank Loans

What are the benefits of getting a small business loan online versus going the traditional bank route?

  • Your loan approval and getting cash-in-hand is a MUCH quicker process when you apply for loans online.
  • If you can’t qualify for a traditional bank loan (i.e., your credit score isn’t up to par), you’re more likely to be approved by an online lender.

Of course, this raises the question — how can online lenders offer consumers financing that traditional lenders don’t offer? The short answer, unfortunately, is that your APR is normally much higher with online loans. BUT if you’re in dire straits and need money right away, your best bet is to secure one of the best small business loans online that we’ve reviewed here.

What Do You Really Need?

Ask yourself these few questions before searching for an online loan:

  • How much cash do you need?
  • How soon do you need it?
  • What kind of financing can you afford?
  • How long before you can pay it off?
  • Are you willing to sign a personal guarantee? (Allows the lender to pursue your personal assets if you default.)

The major benefits of securing a small business loan online come down to saving you the time and hassle you’d likely face trying to get a traditional small business loan. If you need financing right away, your options are limited unless you consider an online loan source.

Best Small Business Loans Online

Read our reviews below to see what your options are. We’ve done the research to provide our small business lending recommendations along with some of the information you’ll need to get started.

Best Overall: OnDeck Review

OnDeck logoVisit Website

OnDeck launched in 2007 to fill a much-needed financing gap for small businesses. They claim they’re committed to offering financing based on performance rather than just a credit score.

OnDeck offers two financing options: line of credit and term loans, which range from 3 to 36 months. Customers around the web rave about OnDeck’s seamless application and approval process and their exceptional customer support.

Pros

Cons

  • Approval and funding as fast as one business day
  • Loans up to $500,000 (higher than many)
  • Several term options, ranging from 3-36 months
  • Consumers say OnDeck typically grants a higher amount than their competition
  • Also offers Line of Credit option up to $100,000
  • Excellent customer support via live chat, phone and email
  • BBB accredited: A+Rating
  • Must make $100,000 in annual revenue
  • Must be in business for at least 1 year
  • Average APR of 25-50% (if you include origination and other fees) as of 7/24/19
  • Personal guarantee required (but no collateral)
  • Doesn’t offer Merchant Cash Advance

Read Our In-Depth OnDeck Capital Review

Lowest APR: Funding Circle Review

Funding Circle logo largeVisit Website

Funding Circle is a well-established and financially sound peer-to-peer lending site, meaning it’s directly backed by everyday investors rather than large financial institutions. It has an excellent reputation and has provided more than $10.2 billion in business funding globally. Funding Circle solely focuses on small business loans (no lines of credit).

Funding Circle isn’t your go-to funding source if you’re a startup — they require at least 2 years in business. But if you’re an established business, Funding Circle is worth serious consideration with some of the most competitive rates you can find online.

Pros

Cons

  • Small business loans up to $500,000
  • Very competitive APR rates
  • Flexible terms at 6 months -5 years
  • Dedicated account manager provided
  • Overall rave customer reviews about the funding process and helpful customer support
  • BBB accredited: A+ Rating
  • Loan approval can take several days
  • Must have been in business for at least two years
  • Collateral and personal guarantee required
  • Doesn’t offer lines of credit or merchant cash advance

Quickest Access To Funding: Kabbage Review

Kabbage logoVisit Website

Kabbage is one of the better-known small business lending sites. It has major media endorsements, from MSNBC, Forbes, Time, etc., — and more than 100,000 small businesses as customers. However, potential borrowers be aware — Kabbage only offers loans structured as a line of credit; they don’t provide “traditional” small business loans.

If you’re looking for a long-term loan, Kabbage is not for you. They only offer 6, 12 and 18-month terms, and they front-load your fees for the first two months, so you have to pay more right out of the gate. But if all you need is quick money to stock inventory, for example, Kabbage is a trustworthy and easy way to accomplish that goal.

Pros

Cons

  • Same day approval
  • Same day access to funding — and you can draw against your line of credit once a day if needed
  • Can borrow up to $250,000
  • Minimum of $4,200 monthly revenue for past three months to be considered or $50,000/year (better than competition)
  • Excellent customer reviews and web resources — blog, eBooks, webinars, articles
  • BBB accredited: A+ rating
  • Must be in business for one year
  • Only offer 6, 12 & 18-month terms
  • High fees of 1.5%-10% first 2 months, then 1.25% for remaining 4 months — averages to 40-80% APR
  • Minimum credit score information unavailable
  • Personal guarantee required
  • No live chat

Comparison Table

We know it’s hard to compare all the details, so we’ve included a comparison table of all the websites we’ve reviewed in this article to help you compare at a glance.

In case you’re new to lending, what’s the difference between a term loan and a line of credit? A term loan is a lump sum of money that is repaid over a fixed term. A line of credit is a revolving account that allows borrowers to draw funds, repay them and redraw from available funds.

 Best Overall: OnDeckLowest APR: Funding CircleQuickest Access To Funding: KabbageBalboa CapitalBiz2CreditCan CapitalCrediblyLendingClubLendingTreeNational Funding
Best Overall: OnDeckLowest APR: Funding CircleQuickest Access To Funding: KabbageBalboa CapitalBiz2CreditCan CapitalCrediblyLendingClubLendingClubNational Funding
Business Term LoansCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmark
Loan Amount$5,000-$500,000$25,000-$500,000N/AUp to $250,000$5,000-$5 Million$2,500-$250,000$5,000-$400,000$5,000-$500,000Unlisted$5,000-$500,000
Lines of CreditCheckmarkCheckmarkCheckmarkCheckmarkCheckmark
Line of Credit AmountUp to $100,000N/A$500-$250,000Up to $250,000$10,000-$1 MillionN/AN/AN/AUnlistedN/A
Avg. APR Range25%-35%7%-33%40%-80%UnlistedVariesUnlisted10%-40%9%-35%VariesUnlisted
Terms3-36 Months6 Months -5 Years6, 12, 18 Months3-18 MonthsVaries6-18 Months6-24 Months1-5 YearsVariesUnlisted
Approval TimeSame Day1-3 DaysSame DaySame DaySame DaySame Day1 DaySeveral DaysUp to 2 DaysSame Day
Earliest Fund Receipt1 Day5 DaysSame DaySeveral Days1 Day2 Business Days2 Days4+ DaysSeveral Days24 Hours
Min. Credit Score600UnlistedUnlistedNoneVariesUnlisted500 or 600VariesVaries620 (Equip. Financing)
Must Be In Business For:1 Year2 Years1 Year1 YearVaries6 Months6 Months1 YearVaries6 Months (Equip. Financing); 1 Year (Working Capital Loan)
Min. Income Requirement$100,000/YearUnlisted$4,200/Month or $50,000/Year$300,000/YearVaries$150,000 Gross Revenue$15,000/Month Deposits$50,000/YearVaries$100,000/Year (Working Capital Loan)
Personal Guarantee RequiredCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkVariesCheckmark
Offers Merchant Cash AdvanceCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmark

FastPay is not included in the table because there are no details about its financing/loan options on its website.

Additional Reviews

Click on one of the links below to jump to other websites we’ve reviewed that provide small business loans online.

Balboa Capital | Biz2CreditCAN Capital | Credibly | FastPay | Lending ClubLending Tree National Funding

Balboa Capital Review

Balboa logo

Visit Website

Balboa Capital offers a wide range of small business loans, including working capital, cash advance, unsecured loans, and programs for women, minorities and veterans. This company has deep pockets and has been a stable source of financing for 10+ years.

We are concerned with the numerous complaints about billing problems, less-than-transparent fees, rates and terms, and unwanted sales calls. Also, many small businesses likely won’t qualify due to their hefty annual revenue requirement of $300,000.

Pros

Cons

  • Same day approval
  • Can borrow up to $250,000 for term loans and lines of credit
  • They say they consider all credit scores
  • Offers Business Cash Advance and Equipment Leasing
  • No personal guarantee required for unsecured loans
  • Excellent web resources
  • BBB accredited: A+ rating
  • Takes several days to receive funds
  • Must make $300,000 in annual revenue (much higher than most)
  • Must be in business at least 1 year
  • No information on website about interest rates, APR or fees
  • Term loans only up to 18 months
  • Fined in 2017 by government for operating without a lender/brokerage license
  • Many complaints on BBB about billing problems and terms changing

Biz2Credit Review

Biz2CreditVisit Website

Biz2Credit is a loan marketplace that serves as a facilitator between small businesses seeking loans and its network of partner lenders, which include traditional banks, alternative lenders, peer-to-peer lenders and other finance organizations. With their marketplace model, it’s hard to know up front what kind of loan you’ll be offered, the terms, APR, etc.

Biz2Credit, however, offers a wide variety of loans, including lines of credit and merchant cash advances, and they have special programs for women, minorities and veterans. Their website has a cool Biz Analyzer tool that helps you figure out what type of loan is best for your needs.

Pros

Cons

  • Can get funding as quickly as 24 hours
  • Loans up to $5 million
  • Flexible terms, short- and long-term loans
  • Offers Merchant Cash Advance, Line of Credit, SBA loans and many other options
  • Outstanding customer reviews for funding process and customer support
  • Excellent website resources for small businesses
  • Minimum qualifications for approval vary widely
  • APR, fees, personal guarantee, etc. vary widely
  • Underwriting fee (typically $250-$400 depending on funding amount) for non-bank loans
  • Not BBB accredited

CAN Capital Review

CAN Capital logoVisit Website

CAN Capital enjoyed 15+ years as a highly-stable alternative capital provider to U.S. small businesses. In late 2016, however, the company suspended its lending services citing internal leadership shakeups and poor loan performances. They resumed funding in July 2017 after executive hires and a new partnership with Varadero Capital.

Despite CAN Capital’s recent problems, current customers give this company two big thumbs up for their easy small biz loan process and customer support. Although you’re only required to be in business 6 months, the high-income requirement of $150,000 could make it tough for many to qualify.

Pros

Cons

  • Loans up to $250,000
  • Only have to be in business 6 months to be considered (compared to one year or more with competition)
  • Offers term loans and Merchant Cash Advance
  • Excellent business loan repayment calculator
  • Offers a 6% prepay discount (applies 90 days after loan starts)
  • Good blog and articles on small business practices
  • BBB accredited: A+ rating
  • No online loan application
  • Funding typically takes several business days
  • Very high qualifying income requirement at $150,000 gross revenue
  • Website lacks APR rates
  • Term loans only up to 18 months
  • Minimum credit score information unavailable
  • Personal guarantee required
  • No live chat

Credibly Review

Credibly logoVisit Website

Credibly offers competitive interest rates and a good track record of small business lending. Credibly offers 3 financing options: small business expansion loans, working capital loans and merchant cash advances. The catch is you have to have a financially sound business to the tune of having an average of $15,000 deposits per month for the last 3 months. They also have a reasonable minimum credit score of 500 to qualify for their Working Capital Loan (600 for Business Expansion). If you can qualify, they’re an excellent small business loan source for quick funding.

Pros

Cons

  • Funding in hand within 48 hours
  • Can borrow up to $400,000
  • Only have to be in business for 6 months to qualify for Working Capital Loan
  • Also offers Merchant Cash Advance up to $400,000
  • Excellent customer reviews for approval process and support
  • Good website resources, including blog, articles, videos, etc.
  • BBB accredited: A+ rating
  • Must make $15,000 in monthly deposits to qualify for term loans
  • Must be in business for 3+ years for Expansion Loan
  • APR rates can get high for shorter-term loans
  • Required to make weekly payments

FastPay Capital Review

FastPay

Visit Website

FastPay Capital is a unique company that specializes in financing and payment solutions for digital media agencies and publishers. This company has facilitated more than $2.5 billion in loans since its inception in 2009. They used to have detailed information on their site about options to get a line of credit against your company’s account receivables (pending invoices), but we can’t find any of that information online anymore. You must contact them to learn details about their financing options.

Pros

Cons

  • Good for startups and growing businesses
  • Offers payment platforms and other solutions for media companies
  • No information on website about available lending solutions — must contact them to find out more
  • Not BBB accredited

Read Our In-Depth Review Of FastLane By FastPay

LendingClub Review

Lending Club logoVisit Website

LendingClub is another peer-to-peer lending site with a secure base of investors. It’s been a major player in alternative online funding over the last decade, and small business loans are only part of their business. They offer more affordable APRs than many other websites we’ve reviewed here. With an origination fee of 3-8% on top of an annual APR, however, they’re not as good of a deal as you might think at first glance (but still much lower compared to others in this article).

In the past, LendingClub was one of our top picks for online small business loans, but they’ve dropped out of our best of categories. This is due to a pending FTC complaint alleging dishonest fee disclosures, marketing practices and other issues, as well as many complaints about poor customer service.

Pros

Cons

  • Business must have at least $50,000 in annual revenue (lower than many)
  • Can borrow up to $500,000 if qualified
  • Lower APR average at 9%-35% (includes a 3%-8% origination fee)
  • Flexible terms, from 1-5 years
  • Dedicated U.S.-based client advisor

Read Our In-Depth Lending Club Review

LendingTree Review

Lending Tree logoVisit Website

LendingTree is another loan marketplace, similar to Biz2Credit. LendingTree traditionally facilitated personal, auto, mortgage and other types of loans, but they branched out into small business lending in late 2014.

Their loans vary widely regarding terms, APR, etc. since they’re financed by a diverse group of lenders. The good news is you don’t incur a fee until you accept a loan offer, so it can’t hurt to try!

Pros

Cons

  • Flexible terms
  • Offers startup financing and Line of Credit options
  • Good customer support hours via phone and email
  • Helpful website resources to determine what kind of financing is right for you
  • Up to 48 hours until you see what loans are available for you
  • Minimum qualifications to be considered vary widely
  • APR, fees, personal guarantee, etc. vary widely
  • A lot of consumer complaints about unwanted solicitation calls from Lending Tree’s lending partners, once consumers applied online
  • Not BBB accredited

National Funding Review

National Funding logoVisit Website

Founded in 1999, National Funding offers small business loans, working capital loans, equipment financing and leasing and merchant cash advances. They’ve provided more than $2 billion in financing to over 40,000 small businesses. Unfortunately, their website doesn’t disclose any interest or APR rates, fees or what it takes to qualify for term loans. You’re also required to make a weekly payment.

Pros

Cons

  • Same day approval
  • Access to funding within 24 hours
  • Loans up to $500,000
  • Only requires 6 months in business for equipment financing and leasing
  • Merchant Cash Advance available up to $250,000
  • Offers a 6-7% prepay discount
  • Dedicated loan specialists
  • Good Small Business Resource Center online with blog, videos, article, white papers
  • BBB accredited: A+ rating
  • Must be in business for 1 year with $100,000+ sales to qualify for working capital loans
  • Minimum 620 credit score for equipment financing/leasing
  • No information about interest rates, fees or APR
  • No live chat or weekend support hours

What Affects Your Business Credit Score?

Experian, one of three major credit bureau’s in the U.S., shares some great tips about what can affect your business’s credit score in the video below.

What Is A Merchant Cash Advance?

Many of the websites we’ve reviewed here offer merchant cash advances in addition to providing small business loans or lines of credit. What’s the difference? A Merchant Cash Advance is available for small and medium-sized businesses that process credit card sales.

Instead of taking out a loan, you get a lump sum payment, and the lender gets a share of your future credit card sales. This is great for businesses who have poor credit and need cash immediately. The catch? Merchant Cash Advances come with a much higher APR, upwards of 100% to even 200%.

MyBizAdvance, an online broker that specializes in cash advances, is a quick option to get up to $500,000 in funds within 2 business days. There’s no application fee, and you’ll know if you’re approved within minutes.

Get Your Loan Paid Off In A Timely Fashion

The last thing you want do to is put in all the hard work to secure your business loan and grow your business only to run out of the necessary funds to pay it back in a timely manner. Our accounting guide can help you save costs and our commerce section can help you streamline your business and improve your margins with how-to guide’s on everything from e-commerce and inventory management to merchant accounts and POS systems.

What’s your experience so far with getting a small business loan? 

Sources: Entrepreneur, ValuePenguin

About The Author:

While attending the University of North Carolina at Chapel Hill’s graduate school for journalism and public relations in the late 1990s, Sally began a long career researching and writing about business, technical and scientific topics. Her decades of experience as well as a passion to stay on top of the latest online tools and resources combine to help small businesses (and freelancers like herself) flourish.

Disclaimer: This website contains reviews, opinions and information regarding products and services manufactured or provided by third parties. We are not responsible in any way for such products and services, and nothing contained here should be construed as a guarantee of the functionality, utility, safety or reliability of any product or services reviewed or discussed. Please follow the directions provided by the manufacturer or service provider when using any product or service reviewed or discussed on this website.

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Robin
Nice and knowledgeable article. As we all know that since recession banks are not giving loan to small business owners. As such they have no option other than merchant cash advance. It’s terms and conditions are totally different from banks. It is easy to get with less paper work.