Business Loan Comparison
Side-by-side comparisons of every major business lending product.
Business Loan Comparison: Find the Right Fit
Not all business financing is created equal. This hub provides honest comparisons across loan types, lenders, and terms — helping you match your specific situation to the best available product.
Quick Decision Guide
- Need speed? Online lenders (24-48 hours) — higher cost
- Need low rates? SBA or bank loans — slower but cheaper
- Need flexibility? Business line of credit — pay interest only on draws
- Need equipment? Equipment financing — the asset is your collateral
Articles
Equipment Financing for Small Business: A Complete Guide
A complete guide to equipment financing for small businesses, covering financing vs. leasing, types of equipment, qualification requirements, rates, and tips for getting the best deal.
Working Capital Loans Explained: Everything You Need to Know
Everything you need to know about working capital loans: types, uses, qualification requirements, costs, and how to choose the right product for your business.
SBA Loans vs. Alternative Lending: Which Is Right for You?
A comprehensive comparison of SBA loans and alternative lending, covering loan types, pros and cons, qualification criteria, and guidance on choosing the right option for your business.
Business Loan Requirements: What Lenders Look For
A detailed breakdown of what lenders look for when evaluating business loan applications, including credit scores, revenue requirements, documentation, and tips to strengthen your profile.
How to Get a Small Business Loan in 2026: Complete Guide
A comprehensive step-by-step guide to securing a small business loan in 2025, covering loan types, requirements, the application process, and tips for approval.
Common Questions
What credit score do I need for a business loan?
Most traditional bank loans require a personal credit score of 680 or higher. SBA loans typically need 650+, while online lenders may approve scores as low as 500-550 with higher interest rates. Your business credit score, revenue history, and time in business also factor heavily into approval decisions.
What is the difference between an SBA loan and a traditional bank loan?
SBA loans are partially guaranteed by the Small Business Administration, which reduces risk for lenders and often results in lower interest rates and longer repayment terms. Traditional bank loans have no government backing but may fund faster. SBA loans typically take 30-90 days to close versus 1-3 weeks for conventional bank loans.
How long does it take to get approved for a business loan?
Timeline varies by lender type: online lenders can approve in 24-48 hours, traditional banks take 2-4 weeks, and SBA loans typically require 30-90 days. Having your documents prepared — tax returns, bank statements, financial projections, and business plan — significantly speeds up the process.
Is a merchant cash advance worth it?
Merchant cash advances provide fast funding but at a steep cost — factor rates of 1.2 to 1.5 translate to APRs of 40-350%. They work best as a last resort for businesses with strong daily card sales that need emergency capital. For most situations, a business line of credit or short-term loan offers far better economics.
Key Terms
Factor Rate
A decimal multiplier (1.1-1.5) used to calculate total repayment on merchant cash advances. Unlike interest rates, factor rates are applied to the original advance amount regardless of how quickly you repay. A $100K advance at 1.3 factor = $130K total repayment. Always convert to APR for comparison.
Annual Percentage Rate (APR)
The annualized cost of borrowing including interest and fees. The only standardized way to compare loan costs across products. A $50K loan repaid over 12 months with $5K in total interest and fees = 18.3% APR. Always ask for APR — not just the interest rate, which excludes origination fees.
Origination Fee
A one-time fee charged by the lender for processing a loan, typically 1-6% of the loan amount. Deducted from proceeds or added to the balance. SBA loans: 0.5-3.5%. Online lenders: 1-6%. Banks: 0-2%. Always factor this into the total cost when comparing offers.
Amortization
The process of spreading loan repayment over time through scheduled installments. Each payment covers interest plus principal. Early payments are interest-heavy; later payments are principal-heavy. An amortization schedule shows the exact breakdown for each payment over the loan term.
Equipment Financing
A loan or lease specifically for purchasing business equipment, which serves as its own collateral. Loan terms typically match the equipment's useful life (2-7 years). Rates: 4-20% depending on credit. Preserves working capital and may offer Section 179 tax deductions for the full purchase price.