The best small business lenders for 2022

In terms of cash flow, it’s not always… say… constant, is it? You may have more revenue one month and then struggle to pay the bills the next. There are many benefits to being an entrepreneur, but you also take the risk of not making enough money.

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So if that’s the case, do you just have to close the store? Not at all. There are small business loans available that can help you get the most out of your business.

What is a small business lender?

There are financial institutions, such as banks and credit unions, as well as online lenders, that specialize in providing financing to small business borrowers like you. They may also offer personal loans, but these are specifically designed to be used as working capital to start or grow a business.

The best small business lenders

Small business owners have never had so many options when it comes to small business loan schemes. Loan products vary from person to person, as do interest rates and loan terms, depending on your qualifications. Here are some things to keep in mind.

The captain

The captain offers short-term loans of up to $ 500,000 in just 24 hours. The process is quick and easy with limited documentation and offers the best prepayment discounts in the industry. This financing is ideal for stock, direct cash flow, bridge financing or any other use you may need to finance your business for a period of 3 – 36 months.

Fast Economics

If you need a quick recovery of your loan, consider financing from Fast Economics. This lender offers SBA loans, credit lines and bridge loans, as well as asset-based loans and cash advances from merchants. Some of them have to be returned within six to 18 months, so this is something you need to know.

Credibly

Speaking of merchant cash advances, Credibly also offers them. It is not a loan. Instead, they are a down payment for future sales and tend to have lower repayment terms than other loans.

Reliability capital

Reliability capital provides fair, affordable funding to help small businesses grow and thrive. They offer transparent, fully amortized term loans from $ 50,000 to $ 500,000 paid in fixed monthly payments for 1 to 5 years. Prices start at 6.99% and there are no prepayment penalties or other hidden charges. Their application takes just 5 minutes to complete and the application will not affect your credit score. Their superior product, simple process and best customer service in their category have earned an A + rating from the Better Business Bureau.

SmartBiz

If you want to buy commercial real estate, SmartBiz is a choice. The lender also offers credit lines, SBA loans, invoice financing and credit cards, so you have many options to choose from.

How do I get a small business loan?

Before you start your online application with a lender, check the eligibility criteria to make sure you meet the requirements.

The biggest factor for most lenders will be your creditworthiness. Lenders can look at both your personal and business credit to see how financially responsible you are and may have a minimum credit score requirement.

Do not have business credit? This is normal for newer businesses. Learn how to create business credit to qualify for more offers.

In the loan application process, you may be asked to provide financial details, such as profit and loss statement or bank statement, your annual income. If you are applying through a traditional bank, you may also need to have a business plan.

If you meet the requirements for income, credit scores and time in the business, even then you may receive different repayment terms from another applicant, simply based on your specific information.

Which loan is best for my small business?

With so many financing options, it can be difficult to know which one is best for your business. That’s why it’s so important to really get deep into what your business needs.

Do you want a one-time cash advance or would you rather have access to a business credit line when you need it?

What do you need the loan for? Capital; Refinancing? There is one type of loan for almost any business use.

Are you looking for funding for a specific use? There are equipment loans and commercial real estate loans that use the asset you are buying as collateral.

What kind of advances and monthly payments can you afford? It is important to budget on this monthly payment so that you can always make it on time.

If you run a startup, you may not qualify for an SBA or long-term loan, so you may need to explore short-term loans, invoice financing, and cash advances from merchants.

Do you just want to be able to make purchases when you need them for your business? In this case, business credit cards may be the solution, though be aware that they tend to have higher interest rates (some have 0% promotions for one year).

Which Lenders Give SBA Loans?

One type of loan that we have not yet covered is the SBA loan. The US Small Business Administration guarantees loans through programs such as SBA 504 and SBA 7 (a), although the SBA is not a lender.

There are banks and online lending partners who are also SBA lenders. This means that they can accept the SBA loan application and process it. Of all your loan options, an SBA loan probably offers the lowest interest rates and the highest loan terms, so if you qualify, I recommend you apply.

Nav’s Verdict: Small Business Lenders

Small business financing can be the difference between a successful business and a thriving one. But not all small business lenders are the same, so spend some time exploring your options, from traditional bank loans to online financing.

Seek reviews from other clients to see what it’s like to work with this lender. You want a reputable brand that will work hard to help you find the loan that is best for you, not the one that pays them the most money.

The relationship you have with your small business lender is one you will have for years, so make sure it fits.

This article was originally written on November 1, 2021 and updated on January 4, 2022.

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