The top 4 startup business loans available in September 2024.

Launching a business can be expensive, particularly if you need to purchase costly equipment or hire staff in your first year. However, there are some lenders who offer small business loans that can assist you in getting started. We have compiled a list of the top lenders, so continue reading to determine which one is the best fit for you.

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Best for microloans

This lender, Kiva, provides microloans of up to $15,000, making it an accessible option for businesses that don't need to borrow a large amount of money.

Kiva's microloans have a 0% interest rate, which is a significant advantage for new businesses looking to save money.

Best for fast approval

According to the lender's website, this is for small businesses seeking pre-qualification for a loan in just a few minutes, with same-day funding available in under 24 hours.

Standout benefits: This lender considers credit scores as low as 500.

Best for large funding amounts

What is this for? Financial offers term loans of up to $1.5 million, making it appealing to businesses in need of substantial funding.

Early repayment of loans from Fora Financial is free of any fees or penalties.

Best for secured loan options

What are secured loan options from Greenbox Capital? They can assist applicants with poor credit to obtain funding and reduce their risk as borrowers.

In one business day, borrowers can receive funding.

Kiva

Kiva is a non-profit that provides a peer-based lending platform for entrepreneurs to crowdfund their loans, allowing them to offer 0% interest funding. Their website states that they have assisted over 2.5 million borrowers.

Loan amounts

Up to $15,000

Eligibility requirements

In order to qualify, you must be over 18 years old and reside in the United States. Your business cannot participate in multi-level marketing, direct sales, illegal activities, or financial investing. Additionally, your business cannot be in foreclosure, bankruptcy, or under any liens.

Credibly

Credibly provides financing options for businesses, including merchant cash advances and business lines of credit. The platform evaluates a business's overall health in addition to traditional credit factors when considering loan underwriting.

Loan amounts

$5,000 to $600,000

Eligibility requirements

To qualify for a business loan, it is typically required to have six months of experience, a credit score of at least 500, and an average monthly revenue of at least $15,000.

Fora Financial

Across various industries such as retail, medical, hospitality, and construction, Fora Financial loans can be utilized for covering a wide range of business expenses.

Loan amounts

$5,000 to $1.5 million

Eligibility requirements

To be eligible for a loan, a business must have been in operation for at least six months, generate monthly revenue of at least $15,000, and have no open bankruptcies.

Greenbox Capital

Greenbox Capital is rated A+ by the Better Business Bureau (BBB) and provides various funding options such as invoice factoring, a business line of credit, and merchant cash advances.

Loan amounts

$3,000 to $500,000

Eligibility requirements

Must be in operation for at least five months

To apply for a business loan for startup costs, what information is required?

Some other information that lenders commonly require includes your name, address, phone number, and the name of your business.

What type of industry does your business belong to (as lenders may have varying restrictions on the types of businesses they provide loans to)?
To qualify for a loan, many lenders require business bank statements to assess basic finances, and also have a minimum annual revenue requirement.
An outline of your growth strategy and the allocation of funds for your business, presented to potential investors.

Some lenders may require additional documentation, such as licenses and permits, personal and business tax returns, and income statements, in addition to the standard requirements.

Alternatives to startup business loans

If you're unable to secure a startup loan or believe it's not the best option, explore these alternative funding sources.

Grants are a source of funding that do not need to be repaid, but they can be challenging to obtain as they require a rigorous application process and may take an extended period to receive a decision. Therefore, if you require immediate financial assistance, this option may not be suitable.
Revolving lines of credit are easier to obtain than loans due to their lower funding limits, but they are similar to credit cards in that they have revolving credit.
Reaching a fundraising goal through crowdfunding involves obtaining small contributions from a large number of people. However, be aware that many crowdfunding platforms charge a fee, typically a percentage of the total funds raised.
Starting a business with your own funds carries a risk, but it can prevent you from accruing debts that may be challenging to pay off.

Frequently Asked Questions (FAQs)

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each small business loan review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of loan products. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently by our team, without any input from our commercial team or external third parties. To learn more about our methodology and how we select the best bad credit small business loan lenders, please refer to our website.

Our methodology

To identify the best financing options for startup costs, CNBC Select analyzed a variety of small business loans from both online and brick-and-mortar lenders. In this roundup, we excluded business lines of credit, invoice factoring/financing, and merchant cash advances since they either have a lengthy application process (like SBA loans) or operate differently than traditional term loans, which provide a lump sum that is repaid over a fixed period.

We compared each small business loan on a range of features, including:

Minimum and maximum loan amounts
Length of term
Credit score needed
Application requirements
Streamlined application process
Fund disbursement
Customer support
Better Business Bureau rating
Customer reviews, when available

The interest rate and monthly payment for small business loans may fluctuate based on changes in the prime rate, but once you accept your loan agreement, a fixed-rate APR will ensure consistency throughout the loan term. Your APR, monthly payment, and loan amount are determined by your credit history and creditworthiness.

Obtaining a small business loan involves submitting a full application and undergoing a hard credit inquiry, which may necessitate providing personal and business proof of income, identity verification, and proof of address. Additionally, collateral such as business equipment, real estate, or personal assets may be required.

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