Are you an entrepreneur in the United States and seeking funding for your new venture? You may not know about Small Enterprise Loans in the U.S., but they can help you get started. In this post, we provide information on how to apply for these types of loans.
Those who do not qualify for bank loans may consider applying for an online lender. These lenders offer competitive interest rates and flexible repayment options.
In addition, online lenders provide better customer service compared to conventional lenders. Moreover, if you find yourself having financial difficulties, you can easily apply for an online loan without any hassle.
Before applying for a business loan from lenders, we suggest you check your personal financial status. First, try to improve your personal financial situation. Secondly, make a proper business plan so investor feels interested in investing in your business. Thirdly, select the best business lender according to your requirements.
We’ve listed down the top 10 legitimate online lenders who can help you get funding for your small business.
List of Top 5 Small Business Loans in the United States
1. Lending Club
LendUp is one of the leading online lenders offering business loans to small businesses. With an average loan amount of $50,000, they offer flexible repayment options starting from 6 months to 10 years.
Their interest rate ranges between 8.5%-15%, depending upon your credit score.
To qualify for small-scale financing from the lending club, the company must be in operation for more than one year; its annual sales turnover must exceed $50,000, and the owner must own 20 percent of the company.
Ondeck began investing in small companies in 2007. Its stock trades on NASDAQ under the symbol ONDK. To get financing from Ondeck you must meet two conditions: 1) You must have run your business for at least one year; 2) Your annual revenues must exceed $100,000. Ondeck also requires a minimum score of 500 for your personal financial history.
OnDeck offers interest rates as low as 13.9% APR (APR) for up to 30 years. You can borrow up to $500,000.00 from OnDeck.
Kabbage offers loans to people with bad or no personal history. They offer easy approvals and fast money transfers. For those who do not qualify for traditional bank loans, Kabbage can help them out.
Kabbage offers small business credit lines ranging from $5,000 to $250,000 for 6–12 month periods at an average APR between 24% and 99%.
Prosper is similar to Lending Club in that it doesn’t offer small loan products but you can use its platform to get an unsecured personal loan up to $35,000.
You can choose between an interest rate ranging from 5.99% APR to 35.99% APY. Usually, it will take 2 weeks for them to approve your application.
5. Funding Circle
Funding Circle is a P2P lender that helps people borrow money from one another. It was founded by two former bankers who wanted to create an alternative way for people to borrow money.
You can get loans between £5,000 and £500,000 at interest rates ranging from 4.99% to 25.99%. Repayments can be made over 6 months to 5 years.
We’ve compiled a list of top small business loan providers in the U.S., but they’re not cheap. You may want to consider alternative sources if you need low-cost funding.
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