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

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Best Overall
OnDeck logo small
Best for Lowest APR
Lending Club logo
Best for Quickest Access to Funding
Kabbage logo

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.



  • 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 24-43% (if you include origination and other fees) as of 2/22/19
  • Personal guarantee required (but no collateral)
  • Doesn’t offer Merchant Cash Advance

Read Our In-Depth OnDeck Capital Review

Best For Lowest APR: Lending Club Review

Lending Club logoVisit Website

Lending Club is a peer-to-peer lending site, meaning it’s directly backed by everyday investors rather than large financial institutions. With a solid track record and a secure base of investors, Lending Club is a major player in alternative online funding, and small business loans are only part of their business.

They offer much more affordable APRs than other websites we’ve reviewed here — and they’re known for their excellent customer service. With an origination fee of 2-7% 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). Still, Lending Club is definitely worth considering if you don’t mind being at the discretion of individual investors choosing if they want to lend to you.



  • Business must have at least $50,000 in annual revenue (lower than many)
  • Can borrow up to $300,000 if qualified
  • Much lower APR average at 9%-35% (includes a 2%-7% origination fee)
  • Flexible terms, from 1-5 years
  • Dedicated U.S.-based client advisor
  • BBB accredited: A+ rating
  • Several days to find out what loans are available to you
  • Must be in business at least 1 year
  • Collateral required for loans over $100,000
  • Personal guarantee required
  • No website resources for small business owners
  • No weekend customer support hours
  • Pending FTC investigation

Read Our In-Depth Lending Club Review

Best For 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- or 12-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.



  • 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 (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 and 12 month terms
  • High fees of 1.5%-10% first 2 months, then 1% remaining 4 months — averages to 40-80% APR (roughly similar to OnDeck)
  • Minimum credit score information unavailable
  • Personal guarantee required
  • No live chat

Side-By-Side Comparison

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.

 OnDeckLending ClubKabbageBalboa CapitalBiz2CreditCan CapitalCrediblyFastPayFunding CircleLendingTreeNational Funding
OnDeckLending ClubKabbageBalboa CapitalBiz2CreditCan CapitalCrediblyFastPayFunding CircleLendingTreeNational Funding
Read ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead Review
Visit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit Website
Business Term LoansCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmark
Loan Amount$5,000-$500,000$5,000 to $300,000N/AUp to $250,000$5,000-$5 million$2,500-$150,000 Per Location$5,000-$250,000N/A$25,000-$500,000$5,000-$1 Million$5,000 - $500,000
Lines of CreditCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmark
Line of Credit AmountUp to $100,000Unlisted$2,000-$250,000N/AUnlistedN/AUp to $150,000Up to $100,000N/AUnlistedN/A
Average APR Range20%-50%9%-35%40%-80%UnlistedVariesUnavailable12%-100+%50%7%-33%VariesUnlisted
Terms3-36 Months1-5 Years6 or 12 Months3 Months - 2 YearsVaries6-18 Months6-24 Months120 Days Maximum6 Months -5 Years6 Months - 5 Years4-24 Months (Working Capital); 2-5 Years (Equipment Financing)
Approval TimeSame DaySeveral DaysSame DaySame DaySame DaySame DaySame Day24 Hours24-72 HoursUp to 48 HoursSame Day
Earliest Receipt of Financing1 Business Day4+ DaysSame DaySeveral Days24 Hours2 Business Days48 Hours48 Hours5 DaysSeveral Days24 Hours
Minimum Credit Score500 Term Loan/600 Line of CreditVariesUnlistedNoneVariesUnlistedUnlistedUnlisted620Varies620 for Equipment Financing
How Long in Business1 Year1 Year1 Year1 YearVaries6 Months6 MonthsUnlisted2 YearsVaries1 Year
Minimum Income Requirement$75,000/Year$50,000/Year$4,200/Month$300,000/YearVaries$150,000 Gross Revenue$10,000/MonthUnlistedUnlistedVaries$100,000/Year
Personal Guarantee RequiredCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkUnlistemCheckmarkVariesCheckmark
Offers Merchant Cash AdvanceCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkCheckmark
Mobile AppsCheckmarkCheckmarkCheckmarkCheckmarkCheckmarkiOS Only
Customer ServiceLive Chat, Phone, Email (Hours Unlisted)M-F. 6:30am-5pm PT. Phone, EmailPhone, Email (Hours Unlisted)Phone, Email (Hours Unlisted)Live Chat, Phone, Email (Hours Unlisted)Phone, Email (Hours Unlisted)Live Chat, Phone, Email (Hours Unlisted)Phone, Email (Hours Unlisted)Phone, Email (Hours Unlisted)M-Th 8am-9pm; Fr 8am-8pm; Sat 10am-7pm ET. Phone, EmailM-F 7:30am-4:30pm PT. Phone, Email
Website Resources for Small BusinessesBlog, Articles, FAQsBlogBlog, Webinars, eBooks, ArticlesArticles, White Papers, Calculators, etc.Blog, Articles, Repayment CalculatorBlog, Articles, Online Repayment CalculatorBlog, Articles, VideosNoneBlog, Knowledge CenterNoneBlog, Videos, Articles, White Papers, etc.
Visit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit WebsiteVisit Website
Read ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead ReviewRead Review

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 | FastPayFunding CircleLending 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.



  • Same day approval
  • Can borrow up to $250,000
  • They say they consider all credit scores
  • Good range of terms from 3-24 months
  • 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
  • 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.



  • 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.



  • Loans up to $150,000 per location
  • Only have to be in business 6 months to be considered (compared to one year or more with competition)
  • Flexible terms, anywhere from 6-18 months
  • 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 (for now)
  • Funding typically takes several business days
  • Very high qualifying income requirement at $150,000 gross revenue
  • Website lacks APR rates
  • 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. The catch is you have to have a financially sound business to the tune of $10,000 revenue per month — significantly higher than most competitors. Credibly offers 3 financing options: small business expansion loans, working capital loans and merchant cash advances. If you can qualify, they’re an excellent small business loan source for quick funding.



  • Funding in hand within 48 hours
  • Can borrow up to $250,000
  • Only have to be in business for 6 months to qualify
  • Also offers Line of Credit up to $150,000 and Merchant Cash Advance up to $250,000
  • Excellent customer reviews for approval process and support
  • Good website resources, including blog, articles, videos, etc.
  • BBB accredited: A+ rating
  • Must earn $10,000 in monthly revenue to qualify
  • APR rates can get high for shorter-term loans
  • Required to make weekly payments for Business Expansion Loan and Working Capital Loan
  • No minimum credit score listed on site

FastLane by FastPay Review


Visit Website

FastLane by FastPay is a unique lender, specifically geared toward digital media startups and small businesses. This company lends you a line of credit against your company’s account receivables (pending invoices). To make it easier to get funding, FastPay only reviews your pending invoices to qualify for financing. There are no requirements for annual income or years in business.



  • Good for startups and growing businesses
  • Line of credit up to $100,000
  • Fewer qualifications for financing compared to other lenders
  • No personal guarantee required
  • Receive funds within 2 business days
  • Required to repay in full within 120 days
  • High 3% monthly fee (roughly 52% APR if you take 120 days to pay back)
  • Financing not offered to sole proprietors
  • No live chat
  • Not BBB accredited

Read Our In-Depth Review Of FastLane By FastPay

Funding Circle Review

Funding Circle logoVisit Website

Funding Circle, another well-established peer-to-peer lending site like Lending Club, has an excellent reputation and solid financial backing. Funding Circle solely focuses on small business loans, but this isn’t your go-to funding source if you’re a startup or less established business.

Funding Circle sets a high bar for approval requirements — at least two years in business and a credit score of at least 620. But if you can qualify, Funding Circle is worth serious consideration.



  • Small business loans and lines of credit up to $500,000
  • Very competitive APR rates
  • Flexible terms at 6 months -5 years
  • Dedicated account manager and personal underwriter provided
  • Overall rave customer reviews about the funding process and helpful customer support
  • BBB accredited: A+ rating
  • Loan approval can take several days
  • Not for startups — must have been in business for at least two years
  • High 620 minimum credit score required to qualify
  • Collateral and personal guarantee required
  • Minimum loan amount is $25,000 (may be too high for some small businesses)

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!



  • Loans up to $1 million
  • Flexible terms, from 6 months up to five years
  • Offers startup financing and Line of Credit options
  • Good customer support hours via phone and email
  • BBB accredited: A- rating
  • 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
  • No website resources for small businesses
  • A lot of consumer complaints about unwanted solicitation calls from Lending Tree’s lending partners, once consumers applied online

National Funding Review

National Funding logoVisit Website

Founded in 1999, National Funding offers a wide variety of financing options for small businesses, including small business loans, working capital, equipment financing, merchant cash advances, and even equipment leasing.

National Funding isn’t meant for startups, and you have to be fairly secure after at least one year in business. Unfortunately, their website doesn’t disclose any interest or APR rates, nor do they list any fees. You’re also required to make a weekly payment.



  • Same day approval
  • Access to funding within 24 hours
  • Loans up to $500,000
  • Flexible terms, from 4-24 months for Working Capital; 2-5 years for Equipment Financing
  • Offers equipment leasing option
  • Merchant Cash Advance available up to $250,000
  • Offers a 6-7% prepay discount
  • Good Small Business Resource Center online with blog, videos, article, white papers
  • BBB accredited: A+ rating
  • Minimum of $100,000 income/year to qualify
  • Must be in business at least 1 year
  • 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.

Is An Online Loan Your Only Option?

With the unfortunate decline of smaller community banks, small business owners are finding it harder than ever to secure traditional small business loans. In a recent survey by the U.S. Reserve Banks, only half of all small businesses that applied for bank funding in the first half of 2014 actually got the cash they needed1. That’s where obtaining a small business loan online can fill the gap. If you’ve been denied by a bank, or suspect you won’t qualify for a traditional loan, you should seriously consider one of the websites we’ve reviewed here. If you’re in dire need, they could come to your rescue!

Are You Growing Your Business?

If you’re using a small business loan to expand your business, we can help you along the way. Need to hire new employees? See which job posting sites are best for employers. Expanding office space? Check out our article on building the best coworking spaces.

What has your experience been with getting a small business loan? 

Sources: Entrepreneur, ValuePenguin

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Sally has coupled her passion for writing with her (slight) obsession for the latest high tech gadgets. While she’s not daydreaming about the beach, she’s taking advantage of all the activities her hometown has to offer in the Blue Ridge foothills.

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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.