Best for credit building
4.3
Bankrate Score = 4.3/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
on Bankrate
Pros
- Good variety of loan products
- Low interest rates
- Free business credit report
Cons
- Limited options if you have poor credit
- Limited information on website
- Slow application process
What to know
Loans include SBA loans, lines of credit and term loans, though most are for businesses with good credit and two years of being in business. Credit builders may be eligible for a cash secured line of credit with $50,000 in annual revenue and a $1,000 security deposit. Loans are slower to fund than loans offered by online lenders, but rates are likely lower for eligible businesses.
Business credit score:N/AThere are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each calculates their own scores based on various scales. D&B and Experian rank on a 1-100 scale. FICO scores on a 0-300 scale. Equifax generates 3 separate scores based on business payment index (1-100), business credit risk (101-992), and business failure (1,000 - 1,880).
Personal credit score:N/AA FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Personal guarantee requirement?:NoThis is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the business defaults. A personal guarantee can help some businesses access credit that typically wouldn't qualify.
Minimum time in business requirement:6 monthsMinimum business annual revenue:$250,000