The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Find a $250,000 business loan from most types of providers. Community and regional banks can be a good choice for established small businesses.
Most offer this amount of financing, often with some of the lowest rates available. And community and regional banks are often more willing to work with small businesses than large national banks.
SBA lenders offer a low-cost alternative to bank loans, thanks to backing from the government. It’s a good option if your business has been around for a few years but struggles to qualify with more traditional lenders. But smaller SBA lenders like Regions Bank might be more willing to offer this amount than SBA lending giants like Live Oak Bank, which tend to finance projects in the millions.
Businesses that can’t qualify for an SBA loan or don’t have time to spend on an application want to consider online lenders. While the average online loan is usually much lower than $250,000, many lenders like OnDeck offer loans of this size. But since online lenders tend to offer higher rates than banks and SBA lenders, save this choice for last.
Business loans for $250,000 cover a wide range of financing scenarios. Here’s a list of the most common types.
| Type of financing | Description | Use |
|---|---|---|
| Short term loan | An unsecured lump sum loan with repayment terms of up to 18 months | To cover unexpected costs or to survive a downturn |
| Business term loan | An unsecured lump sum loan with repayment terms of up to 10 years | To provide working capital for more established businesses |
| Business line of credit | A revolving line of credit for ongoing needs | To tap into funds as needed and pay off as you go |
| Business cash advance | A quick turnaround loan for newer businesses | To borrow against the money you plan to make |
| Accounts receivable financing | A loan with an amount tied to your receivables | Lets you access cash by selling your purchase orders or receivables |
| SBA loan | A low interest small business loan partially backed by the government | To provide working capital to grow your business |
| Startup loan | A term loan for businesses with limited credit history | To provide working capital to get your business off the ground |
| Equipment financing | A collateralized term loan to fund equipment | To pay for any kind of equipment for your business |
| Business credit card | A revolving line of credit for ongoing needs | To tap into funds as needed and pay off as you go |
The application process for a $250,000 business loan might be more involved than an application for smaller amounts of funding. While the application varies depending on the type of financing and the lender, you can follow these steps to get started:
A $250,000 loan often takes a few days to a few weeks to process. Lenders prefer to be thorough when it comes to loans of this size — even online providers.
The cost of your $250,000 loan depends on the rates, fees and loan terms your business receives. And, it also comes down to the current business loan rates for the type of loan you choose.
For example, a $250,000 loan with a 5% APR and a 10-year term would cost your business about $2,652 monthly and almost $68,197 in interest. Use our calculator to see how much a $250,000 business loan might cost at different rates and terms.
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Almost all SBA programs offer $250,000 business loans — with the exception of microloans, which don’t go above $50,000.
Your business might also qualify for a $250,000 SBA disaster loan. But the amount you can borrow often depends on the financial damage your business experienced during a crisis.
If you’re eligible for a $250,000 business loan, chances are your business can qualify for SBA or bank financing. But if you can’t qualify or simply don’t have the time to spend on an intensive application, online lenders can be a good alternative.
Compare our picks for the best business loans before you apply.
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