The best small business loans for Gigster
As a Gigster, you probably come across many situations where you need money that you don’t have on hand. You want to start a new business but need an expensive machine or equipment. Or maybe you want to expand an existing business but don’t have the capital.
Whether you are starting a new business idea, investing in real estate for an existing business or need funds for any other reason, a small business loan can help you achieve your professional goals.
This article describes some common types of small business loans and the best lender options for finding financing today.
The central theses
- With so many small business loans to choose from, you’re sure to find one that suits your needs.
- Kabbage offers the most flexible lending options for small businesses.
- Fundera offers low-risk SBA loans to help companies build credit.
- BlueVine makes small business loans to people with poor credit ratings.
- FundingCircle offers the best term loans for small businesses.
- Kiva offers the best microloans to unbanked borrowers.
- OnDeck offers same-day payout term loans.
Types of small business loans
There are many financing options for small business loans. Which one is best for you depends on your credit rating, collateral and circumstances. Check out the loan types below to learn about some of the most common types.
When most people hear the word loan, they think of a term loan. The lender gives the borrower a lump sum, which the borrower repays in fixed monthly installments plus interest. Most auto loans, home mortgages, and personal loans fall into the term loan category.
Unlike some loan types that restrict the money’s path, term loans offer flexible financing for whatever you need. You can use a term loan to fund the purchase of large equipment, pay for new employees, or cover everyday expenses.
Business owners purchase commercial real estate with commercial mortgages. These loans work similarly to other term loans, with a lump sum loan and repayment in fixed monthly installments. You can use a commercial mortgage to buy commercial real estate, renovate an existing property, or even refinance another commercial real estate loan.
Small Business Administration (SBA) government-backed loans provide capital at lower interest rates and less risk to the borrower. These loans prove to be very useful, but the application process is often lengthy. Approving an SBA loan can take months, so consider this option if you need cash fast.
Business Credit Lines
Many business owners choose lines of credit over traditional loans to borrow only what they need. Credit lines offer revolving credit limits and only charge interest on what you withdraw. If you need varying amounts of cash over a period of time, a business loan can help you maintain your cash flow.
Business owners who need a small amount of money take out microloans of up to $50,000. Some microlenders charge ridiculously high interest rates, but you can find an affordable microcredit with the right lender.
The type of small business loan you need depends on your business and your circumstances. For example, an SBA loan can be the perfect financing option when you need a low-risk loan with moderate interest rates and fees.
Small Business Loans for Gigster
Below is a list of the best small business loans offered by private lenders. These options include term loans, lines of credit, SBA loans, microloans, and loans with low credit requirements.
Kohl: The most flexible loans
If you need capital but don’t know exactly how much, Kabbage offers a great solution. Kabbage customers receive a certain amount of financing, which is provided through a line of credit.
Since you don’t have to borrow the entire loan amount at once, you only pay interest on what you have spent. Kabbage offers maximum flexibility by allowing business owners to borrow what they need instead of taking out an excessive term loan.
Fundera: Best SBA Loans
If getting into debt makes you nervous, try an SBA loan to take advantage of government support, lower interest rates, and reduced fees. Fundera offers SBA loans to help small business owners with limited credit histories and lower credit scores.
BlueVine: Best Loans for Bad Credit
Another small business loan option if your credit needs improvement is BlueVine. This private lender offers financing to small business customers with FICO scores as low as 530. If you need capital but don’t qualify for many loans, BlueVine can provide the financing you need.
FundingCircle: Loans with the best maturity
FundingCircle offers small business loans up to $250,000. They only require a minimum credit score of 600 and can offer same-day payouts depending on where you live and the loan amount. However, business owners in Nevada, North Dakota and South Dakota are not eligible for loans from FundingCircle.
FundingCircle does not charge any prepayment fees, so you will not be penalized for prepaying your loan.
Kiva: Best Micro Loans
If you’re an unbanked business owner, you’re likely struggling to qualify for business loans. Kiva offers interest-free microloans ranging from $1,000 to $15,000 to help such business owners get the financing they need. Kiva does not require a minimum credit rating, but does require investors in the form of friends and family members.
OnDeck: Best Same Day Loans
If you need same-day financing, consider OnDeck. This private lender offers business owners loans with same-day payout options (up to $100,000 in certain states). OnDeck only requires a minimum credit score of 600 and offers credit up to $250,000.
Find small business loan from these top lenders to fuel your efforts to achieve your goals, whether you are starting a new business venture or need capital for an existing small business. If you are looking for more tips for running a small business, click this link to discover some important tips for business financing from the small business banking experts at Nearside.