Low Interest Business Loans

Small or startup businesses and well established businesses can take advantage of low interest business loans. If you are reading this you may be trying to save time visiting multiple websites and comparing loan offers. If you are trying to secure a low interest rate business loan you should apply through Acorn Finance. Acorn Finance allows you to submit one application and receive multiple personalized loan offers quickly. This is an effective way to discover low interest rate business loans but before selecting an offer you should understand all of your options and make an educated decision. Below, we will help you compare business financing options that your business may qualify for.

What Are Low-Interest Business Loans?

In most cases, business loans with lower interest rates are longer term loans. Business owners should consider the total cost of the loan over the entire loan term. Even though the interest rate and monthly payment may be attractive, the loan may not necessarily be a low cost loan. In some cases, you may be able to pay the loan off early without penalty. If this is the case, you should always try to pay the loan off early to maximize potential savings while taking advantage of the low interest rate. Lower payment and longer term business loans can have less strain on cash flow making them a preferred option for many. We encourage business owners to educate themselves on various financing options and compare offers. You may think you want a low interest rate business loan but in some cases, a higher interest rate and shorter term loan may make more financial sense when you compare the numbers.

Low-Interest Business Loan Requirements

Business loan requirements can vary depending on the business, the loan, and the lender. While there is no defined list of requirements most lenders will consider the following. . .
Personal credit score
Length in business
Industry you operate in
Accessibility of the loan
Term

What is the current interest rate on business loans?

Many lenders offer interest rates between 2% to 19% for business loans. The loan amount, term, and risk factor can impact the rate you are approved for. Business lines of credit may have lower interest rates and you only pay interest on the amount of money you use. SBA loans, traditional bank loans, medium-term loans, and business lines of credit usually offer some of the lowest interest rates.

1. TD Bank: Best Overall for Startup and Established Businesses

TD Bank offers low-interest rates and fewer additional fees than most competitors. Whether you are a startup or a well-established business you can qualify for a TD Bank business loan. TD Bank only operates in certain states so you'll want to make sure your business is in one of those states. TD Bank offers a variety of products for small businesses and small business loan amounts up to $1M. TD Bank also offers business lines of credit and SBA loans. While there are many reasons to work with TD Bank, you should prepare for a longer approval process. TD Bank is technically a traditional bank. To begin the process you can submit a contact form online and a representative will contact you.

2. Capital One: Best for Multiple Options

This may come as a surprise to many business owners but Capital One offers business term loans, SBA loans, equipment financing, business credit cards, and business lines of credit. In addition, Capital One is a well-established lender that strives to provide excellent customer service. However, some Capital One business financing may be hard to qualify for. Capital One likes to see borrowers come prepared to their appointments, especially the initial appointment. If you meet with Capital One you should bring an executive summary, business plan, financial statements, and quality references. Whether you think you qualify for Capital One business financing or not, you should consult a representative. You may be able to begin a relationship with Capital One with a smaller business loan or credit card.

3. US Bank: Best for Quick Approval

U.S. Bank offers businesses a quick and easy online approval process that can save you tons of time. U.S. Bank offers business loans up to $250,000 with competitive rates and flexible terms. Businesses that need funds quickly should consider U.S. Bank. U.S. Bank highlights expedited loan decisions and one-time fund payouts. In addition to business loans, U.S. Bank also offers a business line of credit. If you need ongoing access to money you may want to consider a line of credit.

4. BlueVine: Best for bad credit

BlueVine offers business lines of credit and invoice factoring. Invoice factoring is a unique funding solution for businesses. Businesses that use invoice factoring sell control of accounts receivable. This means customers pay the factoring company directly and the factoring company pays you. Most factoring companies automatically deduct their fee before paying you. BlueVine highlights an easy application process, high loan amounts, and the ability to help bad credit borrowers. Businesses can borrow up to $250,000 using BlueVine lines of credit and up to $5M using BlueVine invoice factoring. To qualify for a BlueVine line of credit you should have a 650 or higher credit score. However, to qualify for BlueVine invoice factoring borrowers should have a 530 or higher credit score.

5. Funding Circle: Best for fixed monthly payments

Funding Circle offers peer-to-peer lending and fixed monthly payments. Peer-to-peer lending means that Finding Circle connects you to lenders rather than lending you the money themself. Funding Circle reviews highlight outstanding customer service, straightforward fees and terms, and low entry-level rates. Businesses can get SBA 7(a) loans and term business loans through Funding Circle. Funding Circle offers term business loans with rates starting at 5.73% and loan amounts up to $500,000. SBA 7(a) loans can provide higher loan amounts and longer terms.

6. OnDeck: Best for short loan terms

If you plan on using more than one business loan over time, you should consider OnDeck. OnDeck offers incentives such as reduced fees and lower rates for repeat borrowers. Most OnDeck customers have positive reviews about the company encouraging them to continue to do business with OnDeck. However, new businesses may have trouble qualifying for business loans with OnDeck. OnDeck offers term loans up to $500,000 and lines of credit up to $100,000. Companies should have at least one year in business and $100,000+ in business annual revenue. In addition, business owners should have a credit score of 600 or higher to qualify.

7. American Express: Best for smaller loans

American Express offers business loans up to $75,000 with interest rates starting at 6.98%. Most banks have a minimum borrowing requirement of $10,000. However, American Express allows businesses to borrow as little as $3,500. American Express business loans can be used for working capital, credit card debt consolidation, and merchant cash advances. In addition, to offering lower loan amounts American Express also offers shorter terms up to 36 months. American Express allows businesses to apply online for business loans without affecting your credit score.

Conclusion

In conclusion, if you are a business owner seeking a low interest rate business loan you should submit an application through Acorn Finance. Whether you take advantage of an offer from an Acorn Finance lending partner or not, it can provide valuable insight as to what type of offers are available. Business owners can submit an application through Acorn Finance without affecting their credit score. Acorn Finance partners with reliable lenders that offer competitive business financing.

Discover low interest rate business loans. . . apply online today!