Tuesday, May 21, 2024

Top 6 Options for Small Business Startup Loans

The startups do not usually have funding sources, especially if they are small businesses. They only have to rely on the jumble of financing tools to raise money, like taking loans from friends and family. However, we have some suggestions for the people searching for small business loans in low-interest rates. These small business startup loans have flexible lending criteria and have the quick turnaround with transparent conditions.

Lending Club

It is a peer to peer lending, which means that it connects you directly with multiple investors who work by funding the small chunks of the loan portfolio that may be diverse. There are some conditions, for example, you need to open the business 2 years prior to asking for the loans and have the annual revenue of at least $75,000. If you own a relatively established business and want to have loans on flexible repayment terms, then this may be the best option for you.

Funding Circle

It is another funding behemoth and only loans the small businesses. The annual revenue required for this company is more than $150,000 with 2 years of experience in the business. It is also suitable for the established businesses that want to keep the fees minimal. If your business is doing well, then you do not have to look elsewhere as Funding Circle has got you with its small business startup loans.


It is a direct lender and can give you the loan of $500,000, but it is a rather shorter term and comes with a high-interest rate. It has the least paperwork, which means you do not have to wait long for getting the loan. It offers a loan called Term Loans that is directed towards the small accounts and dedicated to the small business start-ups. It is perfect for the businesses that need immediate funds and can also pay back in short amount of time.


The platform provides you the loan up to $150,000 with the short repayment term of six months. The application methods are very convenient as all you need to have is a PayPal account or any business checking account. However, the APR is really high as it reaches 90%. It is considered an efficient option among small business startup loans as it doesn’t have any strict requirements and provides money in very short time.

Other than these options, there are other lenders that can also get you the small business loan for your startup. Here are some of the places you can consider while deciding about taking the loans.


The conventional banks can provide you large sums of loans at low-interest rates. Moreover, they also offer you the longer repayment terms. The problem is that the loans provided by the banks need whole lot collateral and are also very hard to secure.

Credit Unions

These unions also offer the small business startup loans and approve the fund applications while doubling the bank rates. However, as the matter of fact that the credit unions are non-profit organizations with less overhead, the rates can be lower sometimes.

Umar Bajwa
Umar Bajwa
Umar Bajwa is a digital marketer by profession and a blogger by passion. He thrives on staying updated on topics related to the Business, Finance and HR realm.
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