Running a business comes with enough expenses — your loan shouldn’t add more than it needs to. Low-interest loans can help you keep payments manageable and save money over time, whether you’re expanding, covering day-to-day costs, or investing in new equipment.
We’ve rounded up the best low interest business loans of December 2024 to help you find affordable financing that fits your goals.
9 best low-interest business loans
The nine lenders below offer some of the cheapest business loans available on the market.
35+ business loan lenders reviewed and rated by our team of experts
12+ types of business loans analyzed
Evaluated under our unbiased rating system covering 10+ categories
20+ years of combined experience covering financial topics
We're big on editorial independence. That means our content, reviews and ratings are fair, accurate and trustworthy. We don't let advertisers or partners sway our opinions. Our financial experts put in the hard work, spending hours researching and analyzing hundreds of products based on data-driven methodologies to find the best accounts and providers for you. Explore our editorial guidelines to see how we work.
Best low-interest business loans
Read about how each of our best low-interest business loans works before you apply.
Lendio is a highly rated online marketplace with 75+ partners that can connect you with a range of short- and long-term business loans for different financing needs. Compare term loans, SBA loans, lines of credit, merchant cash advances, invoice financing and more. Lendio also offers quick turnaround financing options for bad credit borrowers and loans for startups that may be harder to find elsewhere. And unlike some other marketplaces, you never pay a fee to use its services.
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
500
Lendio is a highly rated online marketplace with 75+ partners that can connect you with a range of short- and long-term business loans for different financing needs. Compare term loans, SBA loans, lines of credit, merchant cash advances, invoice financing and more. Lendio also offers quick turnaround financing options for bad credit borrowers and loans for startups that may be harder to find elsewhere. And unlike some other marketplaces, you never pay a fee to use its services.
Pros
No cost to the borrower
Over 75 partner lenders
SBA loans available
Partners with banks and online lenders
Cons
Not a direct lender
You may have to field calls from partners
Low rates not available to all businesses
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
3 months to 25 years
Requirements
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.
Kiva is a nonprofit offering 0% interest microloans to entrepreneurs and small businesses. It's one of the best deals out there, but it's not the right choice for everyone. You'll have to raise funds from several people in your social network first to get approved, and the whole process can take up to 45 days. It's best for community-oriented businesses that need small amounts of funding to get off the ground, as its loan amounts max out at $15,000.
Loan amount
$1,000 – $15,000
APR
0%
Kiva is a nonprofit offering 0% interest microloans to entrepreneurs and small businesses. It's one of the best deals out there, but it's not the right choice for everyone. You'll have to raise funds from several people in your social network first to get approved, and the whole process can take up to 45 days. It's best for community-oriented businesses that need small amounts of funding to get off the ground, as its loan amounts max out at $15,000.
Pros
0% APR loans
No minimum credit score
Can be used to start a business
Cons
Loans max out at $15,000
Must raise funds from your social network first
Can take 45 days to fund
No customer service line
Not available to businesses in Nevada or North Dakota
Loan amount
$1,000 – $15,000
APR
0%
Loan term
6 months to 3 years
Requirements
Have at least ten friends and family members willing to contribute to your loan, live in the US, ages 18+, not in bankruptcy or foreclosure, not under any liens, not engaged in: multi-level marketing, direct sales, pure financial investing or illegal activities
Lendzi is a highly rated free loan marketplace that's a bit different from the rest. While most marketplaces work with hundreds of lenders, Lendzi vets and partners with a focused group of about 60 providers specializing in fast turnaround on a wide range of loan products. However, as an alternative lender, rates may be significantly higher than a traditional bank loan.
Loan amount
$5,000 – $20,000,000
APR
Varies by lender
Min. Credit Score
500
Lendzi is a highly rated free loan marketplace that's a bit different from the rest. While most marketplaces work with hundreds of lenders, Lendzi vets and partners with a focused group of about 60 providers specializing in fast turnaround on a wide range of loan products. However, as an alternative lender, rates may be significantly higher than a traditional bank loan.
Pros
Curated lender network
Highly rated on Trustpilot and the Better Business Bureau (BBB)
Proprietary algorithm to match you with lenders
Bad credit options available
Cons
APR ranges not specified
Full list of partners not disclosed
Not all borrowers qualify for the lowest rates
Loan amount
$5,000 – $20,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
6 months to 25 years
Requirements
Minimum credit score of 500, minimum annual revenue of $50,000, preferably one to two years in business
Bluevine is an online lender that offers lines of credit with some of the lowest starting interest rates available. There's no origination or monthly maintenance fees, and you could have funds as soon as 24 hours. You also don't have to pay a draw fee when you borrow, and the line replenishes as you pay it down. Each withdrawal turns into a loan with a term of 6 to 12 months, which you repay weekly or monthly, depending on how long you've been in business.
Loan amount
$5,000 – $250,000
APR
Starting at 7.8%
Min. Credit Score
625
Bluevine is an online lender that offers lines of credit with some of the lowest starting interest rates available. There's no origination or monthly maintenance fees, and you could have funds as soon as 24 hours. You also don't have to pay a draw fee when you borrow, and the line replenishes as you pay it down. Each withdrawal turns into a loan with a term of 6 to 12 months, which you repay weekly or monthly, depending on how long you've been in business.
Pros
Low starting rate
Accepts fair credit
Funding in as soon as 24 hours
Cons
Weekly payments may be required
$15 fee for same-day funding
Potentially high APR for fair credit borrowers
Not available in ND, NV, SD or US territories
Loan amount
$5,000 – $250,000
APR
Starting at 7.8%
Min. Credit Score
625
Loan term
6 or 12 months
Requirements
12+ months in business, $40,000+ in monthly revenue, 625+ credit score
Funding Circle is a peer-to-peer (P2P) platform that offers business loans with rates as low as 7.49%. It accepts fair credit scores and doesn't advertise a minimum business revenue cutoff. But its rates start relatively high and can reach up to over 30% APR. And regardless of your credit score, you'll also be on the hook for an origination fee of 4.49% to 10.49% to cover platform costs, which is common for a P2P lender but higher than your typical direct provider.
Loan amount
$25,000 – $500,000
APR
starting at 7.49%
Min. Credit Score
660
Funding Circle is a peer-to-peer (P2P) platform that offers business loans with rates as low as 7.49%. It accepts fair credit scores and doesn't advertise a minimum business revenue cutoff. But its rates start relatively high and can reach up to over 30% APR. And regardless of your credit score, you'll also be on the hook for an origination fee of 4.49% to 10.49% to cover platform costs, which is common for a P2P lender but higher than your typical direct provider.
Pros
Accepts fair credit
No stated minimum revenue required
No prepayment penalties
Cons
Origination fee starts high
Five-day turnaround in some cases
High minimum loan amount
Doesn't disclose maximum APR
Loan amount
$25,000 – $500,000
APR
starting at 7.49%
Min. Credit Score
660
Loan term
6 months to 7 years
Requirements
660+ credit score, 2+ years in business, operates in an approved industry, no bankruptcies in the past 7 years.
Live Oak Bank specializes in government-backed financing for large projects, like business acquisitions. It's one of the most active SBA lenders in the country — and funds some of the largest loans. Its team of lending specialists has experience in a wide range of industries that can help you find some of the lowest-cost financing available to your small business. But expect the same lengthy application and long turnaround times you'll find with most SBA lenders. And look elsewhere if you need working capital financing.
Loan amount
Up to $15 million
APR
Varies
Live Oak Bank specializes in government-backed financing for large projects, like business acquisitions. It's one of the most active SBA lenders in the country — and funds some of the largest loans. Its team of lending specialists has experience in a wide range of industries that can help you find some of the lowest-cost financing available to your small business. But expect the same lengthy application and long turnaround times you'll find with most SBA lenders. And look elsewhere if you need working capital financing.
Pros
Loan specialists in a range of industries
Top 7(a) lender according to SBA
Low rates thanks to government guarantee
Cons
Often takes months to receive funds
No working capital loans
Online application not available
Loan amount
Up to $15 million
APR
Varies
Loan term
Up to 25 years
Requirements
Not stated, but most SBA loans require a minimum credit score in the mid-600s, a down payment of 10% to 30% and possibly collateral
SBG Funding is a highly rated lender of working capital loans, including term loans and lines of credit from $5,000 to $5 million. The company gets high praise from past customers for its ease of application and fast funding times, which can be important when you're looking for quick capital.
Its business line of credit starts at 1% interest per month, while term loans start at 1.75% a month. While this is more expensive than a bank term loan, SGB Funding has a much higher approval rate than most banks and doesn't require a hard credit check during application.
Loan amount
$5,000 – $5,000,000
APR
Starting at 1.75%
Min. Credit Score
600
SBG Funding is a highly rated lender of working capital loans, including term loans and lines of credit from $5,000 to $5 million. The company gets high praise from past customers for its ease of application and fast funding times, which can be important when you're looking for quick capital.
Its business line of credit starts at 1% interest per month, while term loans start at 1.75% a month. While this is more expensive than a bank term loan, SGB Funding has a much higher approval rate than most banks and doesn't require a hard credit check during application.
Pros
Fair credit ok
High approval rate
High loan amounts
Excellent customer reviews
No hard credit pull required
Cons
High annual revenue requirement
APRs may be higher than a bank term loan
Loan amount
$5,000 – $5,000,000
APR
Starting at 1.75%
Min. Credit Score
600
Loan term
6 months to 7 years
Requirements
600+ credit score, 6+ months in business, $250,000+ in annual revenue
Accion Opportunity Fund (AOF) is one of the few community development financial institutions, or CDFIs, that offers financing across the country through an online application. It has some of the lowest starting rates out there, paired with flexible requirements — you only need to make $50,000 in annual revenue and there's no stated credit score minimum.
AOF also offers coaching and mentoring programs to help your business grow successfully. But AOF is relatively new — it's the product of a merger between two nonprofit lenders — and it may be working out some kinks. Plus, there are few customer reviews available online and those are mixed.
Loan amount
$5,000 – $250,000
APR
8.49% to 24.99%
Min. Credit Score
570
Accion Opportunity Fund (AOF) is one of the few community development financial institutions, or CDFIs, that offers financing across the country through an online application. It has some of the lowest starting rates out there, paired with flexible requirements — you only need to make $50,000 in annual revenue and there's no stated credit score minimum.
AOF also offers coaching and mentoring programs to help your business grow successfully. But AOF is relatively new — it's the product of a merger between two nonprofit lenders — and it may be working out some kinks. Plus, there are few customer reviews available online and those are mixed.
Pros
Low starting APR
Low revenue requirement compared to other lenders
Offers free mentoring and educational support
No stated minimum credit score
Cons
Origination fees of 3% to 5%
Loan amounts vary by state
Not available in DC, MT, ND, SD, TN or VT
Loan amount
$5,000 – $250,000
APR
8.49% to 24.99%
Min. Credit Score
570
Loan term
12 to 60 months
Requirements
12+ months in business, $50,000+ in annual revenue, must own 20% of the business, must be based in the US
Bank of America has some of the lowest rates on unsecured business loans out there, especially if you can score an existing customer (relationship) discount. In addition to business loans, it offers business auto loans, business checking and savings accounts and merchant processing services.
It's also one of the few national banks that's truly available in all 50 states, with thousands of branches you can visit nationwide. But like with many traditional bank loans, it can be difficult to qualify unless you have excellent credit, at least $100,000 in annual revenue and are an existing customer.
Loan amount
$10,000 – $100,000
APR
Starting at 7.25%
Min. Credit Score
700
Bank of America has some of the lowest rates on unsecured business loans out there, especially if you can score an existing customer (relationship) discount. In addition to business loans, it offers business auto loans, business checking and savings accounts and merchant processing services.
It's also one of the few national banks that's truly available in all 50 states, with thousands of branches you can visit nationwide. But like with many traditional bank loans, it can be difficult to qualify unless you have excellent credit, at least $100,000 in annual revenue and are an existing customer.
Pros
Relationship discounts available
Low rates compared to other unsecured loans
Available in all 50 states
Cons
May be difficult to qualify as a new customer
Flat $150 origination fee regardless of loan amount
Loan amount
$10,000 – $100,000
APR
Starting at 7.25%
Min. Credit Score
700
Loan term
12 to 60 months
Requirements
Good credit, 2+ years in business, $100,000+ revenue
Loan amount
$10,000 – $100,000
APR
Starting at 7.25%
Min. Credit Score
700
7 types of lenders that offer low-interest business loans
The cheapest business loans are typically offered by banks, nonprofits and other similar lenders that focus on affordable financing. While these options often have stricter eligibility requirements, they can provide significant savings over time compared to higher-cost alternatives. Let’s take a closer look at the different types:
1. SBA lenders
SBA lenders offer government-guaranteed loans to established businesses that might not qualify for a bank loan. The SBA sets limits to interest and fees for all SBA loans that these lenders can charge, depending on the program and loan size.
Some SBA loans might even offer options to startups and business owners with bad credit, like the SBA Community Advantage and microloan programs. But generally, you need at least three years in business and good credit to qualify for most SBA loan programs.
2. Large national banks
Large national banks like Bank of America, Chase and Wells Fargo tend to offer the lowest interest rates out there on loans. However, national banks are highly risk-averse and offer some of the hardest qualifications for small business loans. Startups, business owners with credit scores below 670 and businesses in traditionally high-risk industries like construction may want to look into other options.
3. Regional and community banks
Regional and community banks are a solid option for small businesses, offering competitive rates that are often lower than those from online lenders. These banks tend to understand the needs of local businesses and can provide personalized guidance. Their smaller size also means they may be more flexible with requirements like credit score and time in business, making them a practical choice for anyone looking for a low-interest business loan.
4. CDFIs
Community development financial institutions, or CDFIs, are small nonprofit lenders with a mission to support the economy in the community they serve. They often offer relatively low-cost loans to small businesses that can’t qualify for an SBA or bank loan, but they’re generally more expensive than a bank or SBA loan.
5. Microlenders
Microlenders are nonprofits that offer small-dollar financing to entrepreneurs and startups. While rates often top 12% APR, they’re cheap compared to the other options available to the borrowers they target. For example, startups and borrowers with bad credit could pay up to 60% APR on their loans.
6. Credit unions
While many credit unions don’t offer business loan programs, those that do often provide rates similar to what you’d find at regional or community banks. Eligibility requirements are also typically comparable, though you’ll usually need to become a member of the credit union to qualify for a loan.
7. Online lenders
In many cases, you might find a low interest rate through an online lender. Online lenders typically have reduced operational costs since they operate fully online and use advanced technology for eligibility. Those savings may be passed along to borrowers, in some cases. Plus, an online marketplace allows borrowers to compare multiple lenders and rates to find the cheapest available that fits their eligibility.
Consider a personal loan for low-cost startup financing
Personal loans may be a better choice if you have a startup with less than six months of revenue, as long as you have good credit and a source of income outside of your new company. That’s because lenders consider new businesses to be risky and will charge high rates — if they offer the loan at all.
A personal loan from a lender like Upstart, which considers factors like your education and career alongside income and credit, might be a better option. But keep in mind that personal loans come with certain limitations and risks. For example, they often have lower borrowing limits and rely on your personal credit and income, which could put your financial health at risk if your business runs into challenges.
What is considered low interest on a business loan?
Any business loan with an annual interest rate (AIR) of 3% to 10% is considered low interest compared to the average interest rates of a business loan, depending on where you borrow from. However, it’s more common for lenders to display the APR on a loan — which is the rate with fees factored in — instead of AIR.
Since business loans typically come with origination fees of 1% to 5% of the loan amount, APRs of 6% to 15% APR are usually considered low. That’s because business loans can reach 100% APR or higher, especially with online short-term loans.
Keep in mind that interest rates can fluctuate based on the Federal Reserve’s monetary policy. When the Fed raises or lowers rates, it can directly impact the cost of borrowing, so it’s worth keeping an eye on economic updates if you’re planning to take out a loan soon.
How to qualify for a low-interest business loan
You typically need to meet the following requirements to qualify for a cheap business loan:
At least three years in business
Good or excellent credit score of at least 670
Profitable business with regular revenue
Low debt obligations compared to revenue
Low-risk industry
While requirements generally depend on the lender and type of loan, the lowest rates tend to go to these types of businesses.
However, each lender has its own underwriting criteria. That’s why comparing offers from multiple providers can help you find the lowest interest rates available to you.
Is it possible to get a 0% interest business loan?
Getting 0% interest funding for your business is highly unlikely through any form of traditional business financing. However, there are less traditional forms of business funding that may offer a shot at 0% interest.
For example, Kiva, which made our list, is a community-based lending platform that lets you crowdsource funds from family, friends and a greater community of lenders. Its website says you can get up to $15,000 with 0% interest. You may also get funding from grants and other non-profits that offer funding with no interest.
More ways to compare business loans
While the interest rate is a large factor in your loan’s cost, it’s not the only thing you should consider when choosing a business loan. The following factors can also help you find financing that’s a good fit for your business.
Loan amount. Available loan amounts are key to comparing lenders. Look for a provider that offers the exact amount you need and avoid over-borrowing.
Repayment term. Loan terms tell you how long you have to pay off the loan, which determines your monthly payment. A longer term gives you a lower payment but a higher total cost, while a shorter term saves interest but with a larger monthly payment.
Monthly payments. Monthly payments are determined by how much you borrow, your interest rate and how long you take to repay. Finding a monthly payment you can afford is important to avoid defaulting on a loan.
Fees. Loan origination fees are a percentage of your loan that the lender either deducts or adds to the balance at closing. These fees can affect how much funding you receive and should factor into the amount you apply for. Other fees to look for include prepayment fees, maintenance fees and late payment fees.
Qualifications. Minimum requirements for credit score, revenue and time in business tell you where the lender isn’t willing to budge. For the best rates, look for a lender with requirements you comfortably meet.
Customer feedback. Customer reviews on sites like Trustpilot and the Better Business Bureau tell you what you can expect from customer service and alert you to any red flags to watch for.
Low-cost alternatives to business loans
Loans aren’t always the best way to finance your business. You may want to consider these alternatives before you apply.
Business grants offer funds that your business doesn’t have to repay, usually up to around $15,000. However, grants are mostly available to nonprofits and can be highly competitive.
Business credit cards offer revolving financing better suited for day-to-day expenses than a loan — like office supplies and marketing costs. And you won’t pay interest if you can pay the balance in full each month.
Personal loans can be a good choice if you need seed funding to start a new business. But a personal loan to fund a business comes with some risk: You’ll still be responsible for payments even if your business shuts down.
Recap: These lenders offer the best low-interest business loans
These providers offer some of the lowest interest rates available compared to other similar types of financing.
The best loan option for your small business depends on your needs and qualifications. If you’re looking for low rates and have strong finances, an SBA or bank loan might be your best bet, while online lenders offer faster, more flexible options for businesses with less-than-perfect credit.
How are interest rates for SBA loans determined?
SBA loan rates are determined by a combination of the prime rate, which is set by the Federal Reserve, and a lender’s markup based on factors like the loan amount and repayment term. Borrower qualifications, such as credit score and business financials, can also affect the final rate offered. The SBA sets maximum limits on how much lenders can add to the prime rate, ensuring rates stay competitive. With several recent Fed rate cuts, SBA loans are expected to be even more affordable.
What’s considered a good rate for a business loan?
A good rate for a business loan is one that’s close to the prime rate. The prime rate is the baseline that banks use for their most creditworthy borrowers, the closer your rate is to the prime rate, the better the deal.
However, the best rates are typically reserved for businesses with strong credit, solid financials and a proven track record so you may not qualify. To find the best rate possible for your business, compare quotes from multiple lenders and consider other factors like fees and terms.
Can I get a low-interest business loan with bad credit?
While it is possible to get a business loan if you have bad credit, you typically won’t qualify for a competitive interest rate. To get a lower rate, consider putting up collateral, like real estate or equipment, to secure your loan and offset the lender’s risk.
Top 10 best business guides
Explore the top business loan guides to help you along your business journey. From information on the best business loans on the market or your best startup loan options, to business loans that require little to no paperwork and more.
Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio
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Anna has written 177 Finder guides across topics including:
Kat Aoki was a personal finance writer at Finder, specializing in consumer and business lending. She’s written thousands of articles to help consumers make better decisions on their home loans, bank accounts, credit cards, cryptocurrency and more. Kat is well versed in working with leading brands in the real estate, mortgage and personal finance industries, and her expertise has been featured on Forbes Advisor, Lifewire and financial comparison sites like iSelect and realestate.com.au. She holds a BS in business administration from California State University, Sacramento and enjoys hiking and yoga in her spare time. See full bio
Kat's expertise
Kat has written 182 Finder guides across topics including:
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