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Online Business Loans 2022: Compare Your Options

Online lenders often provide faster and easier access to small-business loans than banks, though at higher rates.
Written by Andrew L. Wang
Edited by Kimberly Lowe
Last updated on December 9, 2021

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Online business loans have become a popular financing option over the past decade as banks have scaled back on loans to small businesses.
With the help of algorithms and technology, online lenders analyze traditional credit standards, such as personal credit score and cash flow, and may also use nontraditional metrics, including social media interactions and online customer reviews. As a result, they can offer quicker and easier access to capital than traditional lenders like banks and credit unions. Borrowing costs, though, are typically higher for online business loans.
Borrowing from online lenders isn’t for everyone, however. If your business is just getting started, you probably won’t qualify. You’ll have to consider other startup-financing options. But if you’ve been in business at least a year and need quick access to cash or can’t qualify for a bank loan, online small-business loans are worth exploring.
You can compare online financing options by product below: term loans, lines of credit and invoice factoring.
For pandemic-related aid, small businesses have a few options, including Paycheck Protection Program loans, which received new funding in late December.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 7 options for you

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Make selection

Lender
Best for
Max loan amount
Min. credit score
Next steps

Kabbage - Line of credit

on Kabbage's website

Best for Business lines of credit$250,000640

on Kabbage's website

Credibility Capital - Online term loan

with Fundera by NerdWallet

Best for Online business term loans$500,000650

with Fundera by NerdWallet

Funding Circle - Online term loan

with Fundera by NerdWallet

Best for Online business term loans$500,000660

with Fundera by NerdWallet

OnDeck - Online term loan

with Fundera by NerdWallet

Best for Online business term loans$250,000600

with Fundera by NerdWallet

Bluevine - Line of credit

with Fundera by NerdWallet

Best for Business lines of credit$250,000600

with Fundera by NerdWallet

Fundbox - Line of credit

with Fundera by NerdWallet

Best for Business lines of credit$150,000600

with Fundera by NerdWallet

OnDeck - Line of credit

with Fundera by NerdWallet

Best for Business lines of credit$100,000600

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Our picks for

Business lines of credit

Read Review

on Kabbage's website

Kabbage - Line of credit

Read Review

on Kabbage's website

Max Loan Amount

$250,000

Min. Credit Score

640

Est. APR

9.00-36.00%

Depending on your creditworthiness and your business's financials

Kabbage loans are a good option for business owners with fair credit who want quick access to working capital.
Read Review

with Fundera by NerdWallet

Bluevine - Line of credit

Read Review

with Fundera by NerdWallet

Max Loan Amount

$250,000

Min. Credit Score

600

Est. APR

15.00-78.00%

Depending on your creditworthiness and your business's financials

Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
Read Review

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Fundbox - Line of credit

Read Review

with Fundera by NerdWallet

Max Loan Amount

$150,000

Min. Credit Score

600

Est. APR

10.10-79.80%

Depending on your creditworthiness and your business's financials

Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.
May fund quickly
Read Review

with Fundera by NerdWallet

OnDeck - Line of credit

Read Review

with Fundera by NerdWallet

Max Loan Amount

$100,000

Min. Credit Score

600

Est. APR

11.00-61.90%

Depending on your creditworthiness and your business's financials

OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.
May fund quickly

Our picks for

Online business term loans

Read Review

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Credibility Capital - Online term loan

Read Review

with Fundera by NerdWallet

Max Loan Amount

$500,000

Min. Credit Score

650

Est. APR

6.99-24.99%

Depending on your creditworthiness and your business's financials

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.
Read Review

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Funding Circle - Online term loan

Read Review

with Fundera by NerdWallet

Max Loan Amount

$500,000

Min. Credit Score

660

Est. APR

10.13-36.00%

Depending on your creditworthiness and your business's financials

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
Read Review

with Fundera by NerdWallet

OnDeck - Online term loan

Read Review

with Fundera by NerdWallet

Max Loan Amount

$250,000

Min. Credit Score

600

Est. APR

9.00-99.00%

Depending on your creditworthiness and your business's financials

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly

How Much Do You Need?

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Online term loans for small businesses

Term loans provide a lump sum of cash that you repay over a fixed period. Because you can pay them off over a longer period, term loans are usually the better choice for larger investments and long-term growth.
Term loans include the popular SBA 7(a) program, which are loans guaranteed by the Small Business Administration but issued by traditional banks and online lenders.

Lines of credit for small businesses

If you’re looking for financing flexibility, a business line of credit is a better option. You draw on the line — up to a specified amount — as needed and pay interest only on the money you’ve borrowed. Lines of credit are a better choice for short-term expenses. Although the APR may be slightly higher than for term loans, lines of credit provide the flexibility to take out money only when, and as often as, you need it.

Invoice factoring for businesses

Invoice factoring is a way to get immediate cash by borrowing against your unpaid customer invoices, which can help you fill cash-flow gaps while you wait for customers to pay. This type of financing is only for companies that sell goods and services to other businesses and, therefore, have invoices. Typically, invoice factoring costs are higher than with term loans and lines of credit.

Compare online business loans

To help you compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.
Last updated on December 9, 2021

To recap our selections...

Online Business Loans 2022: Compare Your Options