Last Updated January, 2020
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01
Editor's Choice
Star Ratings
A reliable online loan marketplace offering business loans to its consumers by helping them connect with multiple lenders.
  • Charges no fee for services
  • Provides numerous options of lenders
  • Hassle-free application process
9.8
overall rating
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02
Star Ratings
Highly revered and reliable lending platform for small-time entrepreneurs looking for quick short-term business loans.
  • Easy application and access
  • Enough borrowing for your need
  • Instant decision
9.5
overall rating
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03
Star Ratings
An online lending service with flexible borrower requirements and fast application process, best-suited for small businesses.
  • Simple application process
  • Excellent customer care
  • No personal assets as collateral
9.4
overall rating
Read Review
04
Star Ratings
A subsidiary of PayPal has merged with Swift Capital and other lenders to offer business owners a unique lending experience.
  • Weekly payments scheme
  • Fixed one-time fee
  • Convenient application process
9.1
overall rating
Read Review
05
Star Ratings
An incredible financing marketplace catering to all types of businesses while offering varied funding and lender options.
  • User-friendly services
  • Streamlined processes for convenience
  • Secure and unsecured loans
8.9
overall rating
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06
Star Ratings
An emerging alternative lender that offers short-term loans and merchant cash advances suitable for small businesses.
  • 100% unsecured loans
  • Good reputation and accreditation
  • MCA and short-term loans approved in hours
8.7
overall rating
Read Review
07
Star Ratings
An established online lender offering attractive APR, quick access to cash, and flexible repayment terms.
  • No prepayment penalties
  • 24*7 customer service
  • Convenient to use from home
8.4
overall rating
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08
Star Ratings
A reliable lender offering five main types of business funding, a simplified application process, and fast approval.
  • Offers options to startups and small businesses alike.
  • Easy application process.
  • Great response time.
8.3
overall rating
Read Review
09
Star Ratings
Prominent alternative lender helping thousands of businesses that were ineligible for traditional lending.
  • No collateral required.
  • Quick approval of loans.
  • Prioritizes security.
8.1
overall rating
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Essential factors to understand when seeking a business loan

A business loan proves to be one of the most bountiful financial options on the loop. The decision of getting into debt for business can have several great associated reasons and can prove to be a boon when used correctly. A business loan can come from a plethora of different sources; however, commercial bank loans are the most common. The form of debt financing is highly appealing to individuals who wish to start off a business or plan for further expansions through growth and meet the related expenses. Importantly, the option can be availed of by small as well as big business owners.

Without further ado, here are some factors that will aid in attaining a clear understanding of business loans and how the benefits can be maximized.

Lending options for business loans

It is essential to evaluate the different available lending options and pick the one that will suit the given needs best. Working out the best choice will bring better benefits to the business. There is no one-size loan that will fit every need. The rate, qualifications, and the term will vary from one business loan type to another. Some of the loan options include line-of-credit loans, installment loans, interim loans, balloon loans, secured loans, unsecured loans, and letter of credit. Different lending sources around the country will use a myriad of terms to describe the different kinds of loan options.

Reasons to apply for a business loan

While starting or expanding the existing business are two basic reasons to seek a business loan, there are other more specific needs that make for good reasons to get one. Outgrowing the physical office location, building a strong credit for future aspects, getting more equipment, need for more inventory, new business opportunity, and garnering fresher talent are some of these reasons. The listed factors prove to be some of the strong reasons that business owner would wish to get a loan for. However, it all comes down to any factor that can overweight the potential debt.

Picking the right business loan lender

No business loan lender brings to the table the same offering, even if the programs do seem identical. Picking the right lender to work with is a factor that must involve good understanding. The first step is to know what must be derived from the lender. The right borrowing amounts and terms are important factors, but there must be clarity about one’s own requirement. While speed and convenience could be a matter of importance to some, to others it would be a long-term relationship building for future funding. Getting prompt financial advice could be essential for some borrowers, and there are lenders who will exactly serve the need.

Eligibility for a business loan

Eligibility will determine whether the loan would be approved or not. Again, every lender will have different requirements, and the ability of the borrower will majorly drive the amount and term received. Any loan is approved of based on the willingness of the borrower to pay back and for business loan, factors such as strong credit, revenue, cash flow, and profit will be considered. A glitch in any of the given areas is bound to shrink the loan options. However, this does not mean having to deal with restrictive terms. It only means that the type of loan will have to be selected based on the problematic areas.

Hurdles of getting a business loan

In some cases, one may arrive at the right type of business loan, but there may be certain requirements that cannot be fulfilled. However, these hurdles can be passed by obtaining the different requirements. Some of the best ways to get through the same include cutting down on expenses, applying for a new business credit card, and more. There are also different types of business loans that have lesser requirements and can be repaid easily. Working on the business credit will greatly help in increasing one’s eligibility over time. However, getting through the different hurdles can be a lengthy process.

Handling late business loan payments

It may not always be possible to make a business loan payment on time. However, it is not a matter of concern if the delay is no more than 30 days. All one must do is inform and indicate the lender about the delay and when could they expect the payment. This will essentially buy time and ensure clarity.