Top Online Business Lenders in 2022
February 1, 2022 | Last Updated on: July 27, 2022
February 1, 2022 | Last Updated on: July 27, 2022
In this article, weâ€™ll discuss:
If youâ€™re an entrepreneur wanting to grow your small business in 2022, a business loan might be on your radar. Business financing can help you purchase new inventory, equipment, or real estate, expand your business, optimize your cash flow, or help consolidate your businessâ€™s debt.
While business owners in years past sought funding from traditional banks, in 2022, online financial institutions are providing business funding more than ever before. If youâ€™re wondering who the top online business lenders in 2022 are, youâ€™ve come to the right place.
Read on to learn more about online small business financing and why Biz2Credit might be the best solution for your business.
There are generally four types of financing that are suited for small businesses (all of these are available from Biz2Credit): business term loans, working capital loans, commercial real estate loans, and SBA loans. All are available
Hereâ€™s a closer look at each.
Term financing provides a lump sum of money at a set interest rate. Term loans are best for long-term business projects and larger projects that need longer repayment terms. This includes equipment financing, real estate, or expanding or renovating a business.
Working capital is the money your business needs to meet its ongoing obligations like payroll, inventory, utilities, and rent. Working capital financing is a short-term loan that can help with cash flow management.
A commercial real estate loan can help you with a commercial property purchase or renovation. These loans work best where itâ€™s financially more feasible for you to own your building or where your business is highly industry-specific, and you need the freedom to renovate to meet the needs of your business without needing approval from a landlord.
Small Business Administration loans are an attractive option for many business owners. Whatâ€™s not to love? They have low-interest rates, longer terms, and lower fees. They also have a loan for every business need, from microloans up to $50,000 to a maximum loan amount of $5.5 million for an SBA 7 or SBA 504 loan. It seems like a win-win, right?
Not so fast. While some consider SBA loans to be the gold standard of business financing, itâ€™s very challenging to meet eligibility requirements and receive approval for an SBA loan.
The SBA exercises thorough scrutiny of your financial statements, tax returns, bank accounts, and checking accounts. You can have a loan application tied up for months, only to find out that the SBA has rejected it.
Some commercial lenders look at only personal credit scores or business credit scores, but the SBA looks at both. Plus, SBA loans arenâ€™t offered directly by the Small Business Administration. You apply to the SBA loan program through an SBA lender at a credit union or financial institution like Biz2Credit, then the lender seeks a loan guarantee by the SBA. In the end, you have to meet all of the criteria set forth by both the lender and the SBA, and having a low credit score, a previous history of defaulting on a loan, not enough cash on hand, or a criminal record can make getting an SBA loan impossible.
If you think an SBA loan may be out of reach, Biz2Creditâ€™s funding specialists may be able to get you a business loan through a faster funding channel where you donâ€™t need collateral to move forward in funding your business. Many of Biz2Creditâ€™s small business loans are unsecured, except for commercial real estate loans. But if you’re still interested in the low interest rates of an SBA loan and believe you might qualify, Biz2Credit can help arrange one for you.
In addition to SBA loans, term loans, commercial real estate loans, and working capital loans, there are other types of small business financing available from Biz2Credit.
While these loans aren’t right for everyone, it’s good to know your options, especially if other loan types aren’t available to you. For example, if you havenâ€™t established your business creditworthiness, you can use a personal loan to help start your business. This is how many entrepreneurs initially fund their startups.
The same goes for credit cards and personal lines of credit. They often give business owners the capital they need to get their business off the ground or help with cash flow. Later, as your business credit record is established, youâ€™re able to qualify for mainstream business loans.
Not only can you finance your business online at Biz2Credit, but there are many advantages to doing so. Online business loans are an excellent way to get faster funding for your business. That means your business goals can be realized sooner than you might have hoped.
So, letâ€™s say you have an established business and are short of cash for next seasonâ€™s products and inventory. No problem. Online funding through Biz2Credit can help you get products just in time before vendors sell out.
Or, maybe you have your eye on a prized piece of commercial property. But so do two other business owners. A traditional business loan application can take months. On the other hand, an online application offers a faster process, and a lender is likely to approve you sooner, meaning you can move forward and put an offer on the real estate.
Biz2Credit’s online small business loans are convenient and accessible, and you donâ€™t even have to leave your home or office to apply for financing.
As a small business owner, you have more online loan options than ever. There are almost too many funding options, and it can be overwhelming for you to choose the right online lender.
The truth is all online business lenders are not created equally.
Itâ€™s essential to choose your funding specialist wisely. For instance, OnDeck provides short-term business loans, but their interest rates are quite expensive, and they only loan money for certain types of businesses.
Blue Vine and Fundbox cater to borrowers with bad credit or a lack of credit, but again their rates are higher than most. Blue Vine also does a lot of invoice factoring, while Fundbox does revolving lines of credit. Neither is optimal for financing with longer repayment terms.
Some of the other more common online business loan marketplaces are Fundera, Kiva, and Lendio.
But each of the lenders previously mentioned isnâ€™t very flexible in their offerings. On the other hand, Biz2Credit was named by CNBC as the Best for Multiple Types of Business Loans and Best for Marketplace Lending by Business News Daily.
We take the guesswork out of the equation and help you find the best loan option for you and your business.
The Small Business Administration and banks such as Wells Fargo, The Huntington National Bank, and Live Oak Banking Company are some of the more popular traditional lenders of small business loans.
But todayâ€™s savvy entrepreneurs are embracing online business lenders as their new favorite way to borrow money for their small businesses. Why? For one, an online lending marketplace like Biz2Credit offers a more seamless experience than a bank loan or traditional financing.
Traditional lenders have a complex application process with more rigid credit score requirements. The length of time it can take to get commercial financing can take a lot longer than alternative funding from an online lender.
That is if youâ€™re even approved at all.
Because for every SBA or traditional commercial loan approved, many more are denied small business financing. So, while it may be tempting to try and get a business loan with a conventional megabank, the truth is it could stall your business plan.
With a reputable online lender like Biz2Credit, your small business loan is likely to be approved faster, while requiring less in terms of credit approval criteria, red-tape, and paperwork.
For one, youâ€™ll want to choose a reputable online lender that is not some fly-by-night loan shark that uses unscrupulous tactics to lure you in. Consider going with an online lender that has been in business for many years and has earned many positive reviews in the process.
For instance, Biz2Credit is considered one of the veteran leaders in online commercial financing, having launched in 2007 as one of the first online business lenders. In the 14 years we have been in business, Biz2Credit has earned a 4.5 out of 5 rating from 14,075 reviews on Trustpilot.
Youâ€™ll also want a lender with the type of loan that will work best for your business needs. Youâ€™ll want to consider different things when applying for your business loan.
For instance, youâ€™ll want to factor in your credit score. Some lenders have higher credit score requirements than others. Traditional lending institutions often require a credit score of over 700. But funding through Biz2Credit typically requires a credit score of between 575 and 660, depending on the type of loan you need.
Speaking of types of business loans, youâ€™ll also need to consider why youâ€™re trying to get business funding and make sure the lender underwrites that type of loan.
Pricing of fees in small business loans varies by lender and the type of loan. A loan with an SBA lender will have more fees than an online business loan provider like Biz2Credit.
For example, there are no application fees with Biz2Credit, and fees are only charged if the loan closes. As with all lenders, particularly for very large loans or real estate financing, some lending institutions will also have an origination fee.
As a provider of more than $7 billion small business loans, weâ€™ve been around a while. Weâ€™re not like some business loan websites that launch and fail. Quite the opposite, in fact. Weâ€™ve perfected the art of business lending. Our A+ Better Business Bureau rating says it all.
You see, it takes like-minded business experts to understand what business owners need while delivering a loan product that actually contributes to their success. Biz2Credit has also partnered with some of the top lending business industry experts to increase our value and offerings to our clients.
For example, we offer free tools to help move your business plan forward, including our Virtual CFO, which can help analyze your financial data and provide tailored advice.
Thereâ€™s a high probability that we have a loan product for you, whether itâ€™s $25,000 for a smaller working capital or term loan or $6 million for a commercial real estate loan, or anything in between.
Whatâ€™s more, our loans have flexible repayment plans and competitive rates with simple interest, which means that the cost of the loan over time is less than it would be if it were compounded interest.
Biz2Credit offers fast funding. Many business owners can secure their financing with us within one business day and receive their loan payout within three days. Just ask Deepak Verma, who was able to take ownership of his new business within two days of applying for a commercial loan with us.
It really all comes down to choosing a lender that offers a business loan that works best for you. Not only does Biz2Credit have one of the most comprehensive suites of business financing offerings, but we have funding specialists who can help you determine your best loan option.
As one of the top online business lenders for 2022, weâ€™ve been there since online lending became an option for business owners.
Biz2Credit is there before, during, and after the business loan. And we guided our clients through the Paycheck Protection Program during COVID when they needed us most.
We would love to guide you and help you fund your business. We truly believe we are among the best online business lenders. Reach out to one of our fast funding experts today.