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Best loans for startups and new businesses of 2024

Getting startup funding can be tricky — but these lenders are willing to work with new business owners.

New companies can have a hard time getting a loan. That’s because lenders see startups as risky: About half of small businesses fail during the first five years, according to the Bureau of Labor Statistics. And with the Federal Reserve’s decision to maintain interest rates at a 22-year high in the fourth quarter of 2023, borrowing money remains expensive, causing some lenders to tighten their belts.

While traditional bank loans aren’t an option for new businesses, alternative online lenders and personal loan providers may be able to provide the startup capital you need. Here’s a list of the eight best funding options for new businesses by category. We also offer a list of alternatives if these picks don’t fit your startup.

Name Product USFBL Filter Values Min. Amount Max. Amount APR Requirements
Olympus Business Capital
Finder Score: 4.4 / 5: ★★★★★
Olympus Business Capital logo
$500
$250,000
Not stated
Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month
No credit needed. Funding up to $250,000 with a variety of finance options to best fit your business needs.
Go to site
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio logo
$1,000
$10,000,000
Varies by lender
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.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera logo
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
Fora Financial business loans
Finder Score: 4.5 / 5: ★★★★★
Fora Financial logo
$5,000
$1,500,000
Varies
6+ months in business, $25,000+ gross monthly sales, no open bankruptcies
Get qualified for funding in minutes for up to $1,500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.
National Funding business loans
Finder Score: 4.6 / 5: ★★★★★
National Funding logo
$5,000
$500,000
Undisclosed
In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.
Working capital loans and equipment financing, some high-risk industries may be eligible.
Go to site
American Express® Business Line of Credit
Finder Score: 4.4 / 5: ★★★★★
American Express logo
$2,000
$250,000
N/A
Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000
Access lines of credit for your small business even if you aren't currently an Amex customer.
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8 best loans for new businesses and startups

Why trust Finder

  • 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 overall

Lendio business loans

4.8
★★★★★

Finder score

Go to site Read review
Loan amount$1,000 – $10,000,000
APRVaries by lender
Min. Credit Score500

Best for microloans

Kiva business loans

3.7
★★★★★

Finder score

Go to site
on Businessloans.com's secure site
Loan amount$1,000 – $15,000
APR0%

Best for invoice financing

FundThrough Invoice Factoring and Financing

4.5
★★★★★

Finder score

Go to site
on Businessloans.com's secure site
Read review
Loan amount$500 – $10,000,000
APRNot applicable
Min. Credit Score500

Best for personal loans

Finance Factory business loans

4.1
★★★★★

Finder score

Loan amount$5,000 – $350,000
APR0% to 15%
Min. Credit Score700

Best for SBA loans

SmartBiz business loans

4.5
★★★★★

Finder score

Loan amount$30,000 – $500,000
APRPrime Rate, plus 2.75% to 4.75%
Min. Credit Score650

Best for business line of credit

Bluevine business lines of credit

4.3
★★★★★

Finder score

Read review
Loan amount$5,000 – $250,000
APRStarting at 6.2%
Min. Credit Score625

Best if you haven’t opened yet

Guidant Financial business loans

4
★★★★★

Finder score

Loan amount$10,000 – $150,000
APR12% to 18%
Min. Credit Score690

Best for equipment loans

National Funding business loans

4.6
★★★★★

Finder score

Go to site
Loan amountUp to $150,000
APRNot stated
Min. Credit Score600

Methodology: How we choose the best startup lenders

Finder’s editorial experts review over 200 business loan providers before selecting the best lenders for new businesses. We pick lenders that have relaxed time in business requirements, good customer service and competitive rates. We also review each company’s Better Business Bureau reviews and Trustpilot ratings.

We weigh lenders and financing companies against these factors:

  • Time in business requirements
  • Annual revenue requirements
  • Willingness to work with new or risky industries
  • APRs
  • Fees, such as origination fees
  • Loan amounts
  • Repayment terms
  • Credit score requirements
  • Turnaround time
  • State availability
  • Application process
  • Lender reputation and customer reviews

What is a startup business loan

A startup business loan is a type of financing designed to help new businesses get off the ground. They provide capital that can be used to buy a new business or franchise, pay for equipment and provide working capital to fund the day-to-day operations and expansion of the business.

The most common types of startup and new business loans include SBA 7(a) loans, personal loans, equipment loans, lines of credit and business credit cards. There are also portfolio loans and ROBS (rollovers as business startups), which leverage your personal assets to fund a business.

How financing can benefit a new business

Startup business loans give you access to capital you might not otherwise have, you may even find a business loan without having any money yet. With it, you can fund your expenses without selling equity — all while improving your business’s positive payment history and building a relationship with a lender.

  • Speeds up growth
  • Funds initial expenses
  • No equity requirement
  • Build business credit

How do I qualify for a business startup loan?

Watch our 60-second video!
Business loan requirements vary from lender to lender. However, those available to new businesses focus on the entrepreneur’s history of paying off personal debt rather than the business itself. You’ll have the most options if you meet the following criteria.
  • Good credit. Many business startup loan providers ask for a 670 credit score or higher.
  • No recent bankruptcies. In addition to your credit score, startup lenders typically look at your credit report. Bankruptcies stay on your report for seven to 10 years, depending on how you file.
  • No recent delinquencies. If you’ve been late paying off debt, that could also hurt your chances of getting a startup loan.
  • A strong business plan. Since your business doesn’t have a track record to back itself up, your business plan is often the only place where you get to make a case for yourself.
  • Enough revenue. Some lenders only require around $10,000 in monthly revenue to qualify, while others may require $100,000 or more per month.
  • Time in business. Many business loan providers have a minimum time-in-business requirement. For startups, that could be anywhere from six months to one year.

Be wary of companies that push you to pay in advance to help you loan shop, require you to pay fees upfront or seem to have unverifiable guaranteed approval. These “lenders” may actually be business loan scams. Learn the warning signs to identify a potential scammer as you shop around.

Can I get a startup business loan with bad credit?

It’s possible to get a business loan with bad credit, but your options are extremely limited. You may have better luck considering other financing alternatives, such as rollover for business startups (ROBS) or crowdfunding — that don’t necessarily rely on your credit score. Microlenders and Community Development Financial Institutions (CDFIs) are also your friend: Many have programs designed to support local entrepreneurs. They typically offer small amounts of financing in exchange for a training course.

You may be able to qualify for some term loans or alternate types of business loans, and other types of business loans that don’t require a credit check. But be aware that these come with a higher price tag — think APRs over 300%. And if you’re just starting out, it may be worth improving your personal credit score before borrowing for your business.

How to apply for a loan as a new business

Once you know how much you need to borrow and compare lenders, you’re ready to apply. Applying for a business loan may require a lot of documentation, and SBA loans also require completing SBA-specific forms. While there are a few lenders with low or no required documents, they may not offer the best rates to new businesses.

Documentation to prepare can include:

  • Growth and revenue forecasts.
  • Recent personal and business tax returns.
  • Bank statements.
  • Financial projections.
  • Owner financial statements and resumes.
  • Business plan and business history.

Once you’ve followed the lender’s application process and submitted all the requested documents, you’ll receive a credit decision (approval or denial letter). If you choose to accept the loan, you’ll complete the application and wait for your funds, which may take a week or longer, depending on the financing you’re applying for.

Here’s our more detailed guide on applying for a business loan.

Is it possible to get a 0% interest business loan?

Yes, it’s possible to get a 0% interest business loan. Kiva, a lender on this list, offers a 0% interest small business loan of up to $15,000. Guidant Financial also offers unsecured loans with interest rates starting from 0% to 3% for qualified borrowers. However, these are not specifically startup loans.

You can also look into a 0% introductory rate business credit card to start a business, which may be easier to qualify for than other types of business funding. Other low-interest business loans can be found at banks, credit unions and online lenders — but you typically need good credit to qualify and startups may not be eligible.

More types of financing for new businesses and startups

Borrowing isn’t always the best idea when you’re just getting started. Not only will it be potentially more expensive and more difficult to qualify for, but you’ll also be personally responsible for any money your business borrows and can’t repay. Women-owned businesses and entrepreneurs from historically marginalized groups can also have a harder time getting their foot through the door, thanks to human bias and structural barriers to getting a loan.

Some other ways to finance a startup include:

  • Equity investments — Small businesses may be able to get an equity investment through a venture capital firm or an angel investor. There’s no limit to how much money you can raise through this method. And while you won’t have to pay back any of the money you receive from an investor, you could lose partial control of your company. You may want to keep a lawyer on retainer for this sort of funding, though. They’ll help you navigate securities laws so your business can avoid legal issues down the road.
  • Home equity loans or HELOCs — If you own a home with at least 20% of equity, you could borrow against your home to help fund your startup, aka a second mortgage. Home equity loans or HELOCs tend to come with lower interest rates than other unsecured borrowing methods. But your home is collateral on the loan, so tread carefully.
  • Crowdfunding — With equity crowdfunding, your company starts an online campaign to receive funding from multiple investors in exchange for partial ownership. With rewards-based crowdfunding, your business offers prizes in exchange for donations. The amount of funding you can get may be restricted based on the Securities and Exchange Commission’s rulings.
  • Business grants — Startups with a mission, especially nonprofits, might want to look into business grants to get off the ground. Like an investment, you don’t have to repay a grant. However, they can be highly competitive and require a lot of work. They also typically don’t get much higher than around $15,000, so you’ll likely need other funding methods to supplement it.
  • Credit cards — A credit card can be a great way to cover smaller expenses and manage your company’s spending since multiple people can have cards from the same account. Some of the top startup-friendly business credit cards have a 0% APR promotional period, making it a viable option for businesses that expect to be able to pay off what they spend within the first year.
  • Rollover for business startups (ROBS) — If you’re willing to borrow from your retirement plan, a ROBS might be a worthwhile investment for your startup. It involves taking advantage of a tax loophole that allows your business to access these funds without paying a penalty if it’s the right type of corporation. You need to at least $50,000 in your retirement account to qualify and could face heavy fines, so many business owners opt to hire a third party to handle the details.
  • Friend and family loans — Initial financing to get a startup off the ground. Borrowing from your friends and family is sometimes the easiest way to get a good deal on startup funding — and there’s a chance you might not have to pay interest or sell any equity. Want to make it official? Use a service like LoanWell to whip together a legally binding contract with interest fees and late penalties.

How to crowdfund a startup

Some startups may choose to offer investors goods, services or equity in their company in exchange for funding. Crowdfunding also helps companies generate buzz and make connections with potential clients.

There are a few types of crowdfunding available. The right one for your business depends on your particular needs.

  • Equity crowdfunding exchanges funds from investors for partial ownership of the company. You can raise up to $75 million, but fees can set you back as much as $100,000, and regulations are difficult to navigate.
  • Donation-based crowdfunding comes with few regulations and doesn’t require anything in return. Typically, the only cost is a platform fee.
  • Rewards-based crowdfunding works like donation-based crowdfunding — but contributors to your campaign receive a gift in exchange. Typically, you also have to pay a platform fee.

Recap: Best startup business loans

And remember, there are plenty of options at every stage of the business process. Read our guide to the best business loans for more options.

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To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
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Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

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4 Responses

    Default Gravatar
    FaratziAugust 1, 2017

    How much can I borrow from a private lender? Until what amount he can give me with my house property as a collateral? Where can I find private lenders that give big amounts of money for business and for buying my instruments, an amount of 1 million with my house property as a collateral?? I want to find a real one because there are a lot of frauds. I am waiting for your urgent response. Thank you!

      Default Gravatar
      DanielleAugust 2, 2017

      Hi Faratzi,

      Thank you for contacting Finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

      Generally, large loan amounts usually have specific eligibility criteria which include a minimum income requirement as this is one way for lenders to make sure their borrowers have the capacity to repay their loan amount. Lenders will also take into consideration your credit standing, employment status, outstanding loan, and other liabilities in their decision-making.

      You can compare business loans for options that may suit your needs. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.

      I hope this helps.

      Cheers,
      Danielle

    Default Gravatar
    LaurelJuly 13, 2017

    Currently I am on employed but intend to start my own online business as an affiliate marketer through a well established training program called Aspire. I have absolutely no personal funds to use to pay for their training program which costs $2000. Although they cannot guarantee instant income, their average affiliates start making $8000 per month in the first 90 days. Also, my credit rating is approximately 560 right now. Where can I possibly get a $2-3,000 start up business loan to start my business?

      AvatarFinder
      HaroldJuly 16, 2017Finder

      Hi Laurel,

      Thank you for your inquiry.

      Many business lenders require that your business has been established for at least six months and that it’s meeting certain revenue minimums. There are some lenders who may consider your business plan and personal credit profile in lieu of business experience to evaluate your loan application and assess risks. We do have a guide about startup loans that will help you understand how you can get a business loan in the early stages. You could also get a personal loan to start a new business.

      I hope this information has helped.

      Cheers,
      Harold

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