The Best Small Business Lenders in 2021

When it comes to cash flow, it’s not always… shall we say… stable, is it? You can make more income one month and then find yourself scrambling to pay the bills the next month. 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 this happens, should you just go out of business? Not at all. There are small business loans available that can help you keep up with better times.

What is a small business lender?

There are financial institutions, like banks and credit unions, as well as online lenders, that specialize in financing 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.

Best Small Business Lenders

Small business owners have never had so many options when it comes to small business loan programs. Loan products vary from loan to loan, as do loan rates and terms, depending on your qualifications. Here are a few to consider.


Kapitus offers short term loans of up to $ 500,000 in as little as 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 inventory, immediate cash flow, bridge financing, or any other use you may need to fund your business for 3-36 months.

Quick financing

If you need a quick loan turnaround, consider financing from Quick financing. This lender offers SBA loans, lines of credit and bridging loans, as well as asset loans and cash advances to merchants. Some of them need to be paid back within six to 18 months, so you have to be aware of that.


Speaking of cash advances to traders, Credibly also offers them. These are not loans; instead, they are an advance on future sales and tend to have shorter repayment terms than other loans.

Credibility capital

Credibility capital provides fair and affordable financing to help small businesses grow and succeed. They offer transparent, fully amortizing term loans of $ 50,000 to $ 500,000 that are paid in fixed monthly installments over terms of 1 to 5 years. Rates start as low as 6.99% and there are no prepayment penalties or other hidden charges. Their application only takes 5 minutes to complete and the application will not affect your credit score. Their superior product, straightforward process, and top-notch customer service have earned an A + rating from the Better Business Bureau.


If you want to buy a commercial building, SmartBiz is an option. The lender also offers lines of credit, SBA loans, invoice financing, and credit cards, so there are plenty of options to choose from.

How do I qualify for a small business loan?

Before you begin your online application with a lender, review the eligibility criteria to make sure you qualify.

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

Don’t have trade credit? This is normal for new businesses. To learn how to establish business credit thus you qualify for more offers.

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

If you meet income, credit score, and tenure requirements, you may even get different repayment terms from another applicant just 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. This is why it is so important to really delve into the needs of your business.

Do you want a lump sum upfront or prefer to have access to a business line of credit when you need it?

Why do you need the loan? Working capital? Refinancing? There is one type of loan for just about any business purpose.

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

What Kinds of Down Payments and Monthly Payments Can You Afford? It’s important to budget for this monthly payment so that you can always make it on time.

If you’re running a startup, you might not qualify for an SBA or long-term loan, so you may need to explore short-term loans, bill financing, and merchant cash advances.

You just want to be able to make purchases when you need them for your business? In that case, business credit cards might be the solution, but be aware that they tend to have higher interest rates (some have 0% introductory promotional offers for a year).

Which lenders provide SBA loans?

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

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

Nav’s verdict: small business lenders

Small business financing can make the difference between a struggling business and a successful one. But not all small business lenders are the same, so take the time to explore your options, from traditional bank loans to online financing.

Look up the reviews of 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’s right for you, not the one that makes them the most money.

The relationship you have with your small business lender is one that you will have for years to come, so make sure it’s right for you.

This article was originally written on November 1, 2021 and updated on November 10, 2021.

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