Small and medium business loans are sources of financing that can help you grow your business, purchase equipment, or cover operational costs. There are different types of small and medium business loans, such as bank loans, SBA loans, online loans, lines of credit, invoice factoring, and microloans. Each type has its own eligibility criteria, interest rates, repayment terms, and benefits.
Some of the best small and medium business loans available in February 2024 are:
- SBA 7(a) loan: This is a government-backed loan that can be used for various purposes, such as working capital, debt refinancing, or business expansion. The maximum loan amount is $5 million, the minimum credit score is 650, and the APR range is 11.50-15.00%. The maximum term length is 25 years.
- Bank of America term loan: This is a bank loan that offers fixed interest rates, monthly payments, and no prepayment penalty. The loan amount varies depending on your business needs and qualifications, the minimum credit score is 700, and the APR range is not disclosed. The maximum term length is 5 years.
- Wells Fargo line of credit: This is a revolving credit line that allows you to access funds as needed, up to your credit limit. You only pay interest on the amount you use, and you can reuse the funds after you repay them. The maximum credit limit is $150,000, the minimum credit score is 680, and the APR range is 10.25-18.25%. The term length varies depending on your credit line.
- Bluevine line of credit: This is an online credit line that offers fast and flexible funding, with no origination fees or maintenance fees. You can draw funds up to your credit limit anytime, anywhere, and repay them over 6 or 12 months. The maximum credit limit is $250,000, the minimum credit score is 625, and the APR range is 20.00-50.00%. The term length is 1 year.
- OnDeck term loan: This is an online term loan that provides quick and simple financing, with a one-time origination fee and daily or weekly repayments. The loan amount ranges from $5,000 to $250,000, the minimum credit score is 625, and the APR range is 35.40-99.90%. The term length ranges from 3 to 24 months.
To find the best small and medium business loan for your needs, you should compare different options based on your eligibility, loan amount, interest rate, repayment term, and fees. You should also consider how fast you need the funds, how you plan to use them, and how they will affect your cash flow and credit score.