Best LLC loans in March 2023

Written by
Meaghan Hunt
Edited by
Helen Wilbers
Reviewed by
Chloe Moore, CFP®
Mar 02, 2023
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Compare the best fast business loans in March 2023

LENDER AND LOAN TYPE BEST FOR MIN. FICO CREDIT SCORE LOAN AMOUNT MIN. TIME IN BUSINESS
Bluevine line of credit LLC line of credit 625 Up to $250,000 24 months
Funding Circle term loan Building business credit 660 $25,000-$500,000 24 months
Lendio line of credit Comparing lender options 560 $1,000-$500,000 6 months
Taycor Financial term loan Unsecured loans 550 $10,000-$1 million 3 months
Triton Capital equipment loan Equipment loans 600 $10,000-$500,000 Startups eligible

Bluevine line of credit: LLC line of credit

Minimum FICO credit score
625
Minimum annual revenue
$480,000
Minimum time in business
24 months
Simple interest rates from
6.20%
Loan amount
Revolving, up to $250,000
Term lengths
6 or 12 months

 

Overview: Founded in 2013, Bluevine is a fintech company focused specifically on banking services for small business. In addition to a business checking account, Bluevine offers a revolving line of credit specifically for small businesses. This unsecured revolving line of credit is issued through Celtic Bank, a Utah-chartered industrial bank, member FDIC. Your available credit automatically replenishes as you pay off your balance.

Why Bluevine is the best for LLC lines of credit:  With a speedy online application process, Bluevine offers lines of credit for LLCs and other small businesses. Well-qualified and well-established borrowers may enjoy  a low starting interest rate.

Pros

  • Online application, funding available in as little as 24 hours
  • Low starting interest rate
  • Minimal fees

Cons

 

  • Not suited for startups
  • Unusually high minimum annual revenue

Funding Circle term loan: Best for building business credit

Minimum FICO credit score
660
Minimum annual revenue
No set requirement
Minimum time in business
24 months
APR from
12.45%-45.00%
Loan amount
$25,000-$500,000
Term lengths
6 months-7 years
 

Overview: Funding Circle has backed more than 130,000 businesses around the world since its launch in 2010. The company offers small business lines of credit and SBA 7(a) loans in addition to their business term loans. Funding Circle blends the convenience of an online application with the personal touch of assigning you a dedicated account manager to touch base with once you’ve committed to a loan. 


Why Funding Circle is the best for building business credit: Loan payments are reported to credit bureaus Experian and Dun & Bradstreet, so on-time payments may help your business credit score grow.

Pros

  • No prepayment penalties
  • No FICO credit score impact to apply for LLCs
  • Flexible repayment terms ranging from six months to seven years

Cons

  • Two years’ time in business required
  • Origination fee can be high

Lendio line of credit: Best for comparing lender options

Minimum FICO credit score
560
Minimum annual revenue
$50,000
Minimum time in business
6 months
Interest rates from
8.00%-24.00%
Loan amount
Revolving, $1,000-$500,000
Term lengths
1-2 years

 

Overview: Lendio is a lending platform that connects borrowers to a network of more than 75 funders. From startup loans to business credit cards, Lendio allows applicants to generate offers from multiple lenders with whom they may qualify to borrow. The Lendio business line of credit option allows you to search based on how much money you need.

Why Lendio is the best for comparing lender options: Lendio matches your business profile and needs with lenders from their network that may be best suited for you. For efficient shopping, this site allows you to compare multiple lenders side-by-side.

Pros

  • Highly flexible lines of credit, starting as small as $1,000
  • Lower barriers for approval than some competing lenders
  • Both secured and unsecured options

Cons

  • Can take up to two weeks to receive funds
  • Fees vary based on the lender you’re matched with

Taycor Financial term loan: Best for unsecured loans

Minimum FICO credit score
550
Minimum annual revenue
$96,000
Minimum time in business
3 months
Factor rate from
1.10-1.36
Loan amount
$10,000-$1 million
Term lengths
4-60 months

 

Overview: Taycor Financial offers a variety of loan products for businesses, including equipment financing, software financing and startup financing. Taycor has been in business development for over 30 years. The company’s term loans offer highly flexible use terms and repayment options, and can be used for working capital.

Why Taycor Financial is the best for unsecured loans: This lender offers a simple online application process, which requires only three months of banks statements for most requests under $400,000. Plus, borrowers may not need to provide collateral for amounts up to $500,000.

Pros

  • Short time-in-business requirement
  • Funds are available in as little as 24 hours
  • Simple application 

Cons

  • Personal guarantee required
  • Maximum factor rate is relatively high

Triton Capital equipment loan: Best for equipment loans

Minimum FICO credit score
600
Minimum annual revenue
$350,000
Minimum time in business
Available to startups
Interest rates from
5.99%-24.99%
Loan amount
$10,000-$500,000
Term lengths
12-60 months

 

Overview: Like some of its competitors, Triton Capital company rose out of the 2008 recession, offering a solution for small businesses that may struggle with traditional lending. The company’s equipment loans can be used for anything from heavy machinery to medical equipment. Triton Capital’s $500,000 upper limit is generous, but the company requires significant annual revenue to qualify. 

Why Triton Capital is the best for equipment loans: This lender offers a quick turnaround on applications and comparatively low-barrier loans for startups looking to expand.

Pros

  • Approval within hours and funding within two days
  • No set minimum time in business 
  • Low starting APR

Cons

  • Comparatively high annual revenue required, starting at $350,000
  • Documentation fee
  • Personal guarantee required

The Bankrate guide to choosing the best LLC loans

Limited liability company loans are small business loans used to fund startup costs, expansion, or major purchases for your LLC. Most small business loans are available to LLCs, so it can be hard to choose a lender. Here, Bankrate assesses some of the top picks available in today’s market. You’ll also find advice on qualifying and applying for these loans.

We made sure to pick a mix of loan types to suit different businesses’ needs. We considered each loan’s affordability and accessibility, including their availability across the United States. 

What is an LLC loan?

A limited liability company is a common type of business entity in the United States. LLCs may be organized in several ways, such as with single-member ownership, multi-membership, or member-managed companies. Members can be individuals, other LLCs or corporations.

An LLC loan is simply a business loan made to an LLC in exchange for repayment plus interest. Most business loans provided by both nontraditional and traditional lenders are available to LLCs. 

LLC loans may be used toward expenses  including startup or expansion costs, buying inventory or equipment purchases.

Types of LLC loan

LLC loans come in all types, but these are some of the most popular.

SBA loans

SBA loans are partially guaranteed by the U.S. Small Business Administration. While these loans can be harder to qualify for than some others, this is because they are lower risk for lenders. In the event of default, the SBA will repay your lender the portion of the loan it guaranteed.  

Term loans

A term loan is a lump sum that is borrowed and repaid over a specified period. For business loans, this window may be anywhere from a few months to 10 years.

Lines of credit

A business line of credit is a fixed amount of money your lender allows you to borrow. Like credit cards, lines of credit are a type of revolving credit. You can borrow flexibly up to your limit and repay over time.

Invoice factoring

Invoice factoring is a type of borrowing that allows businesses to float expenses while awaiting payment of invoices. This is a short-term solution for small businesses with inconsistent cashflow.

You sell your unpaid invoices to the factoring company for between 70 percent and 90 percent of your invoiced amount. Then, the company collects those invoices and pays you the remainder, deducting a percentage as a fee.

How to qualify for an LLC loan

LLC lenders commonly require similar information from applicants. However, the threshold for creditworthiness will differ based on the lender. 

Business owners should be prepared with the following information:

Be armed and ready with other documents to supplement your application. Lenders may ask for one or more of the following:

How to apply for an LLC loan

Applying for an LLC loan is much like the process for getting any business loan. Following the steps below can help you to prepare for the process.

1. Choose a type of loan

Consider whether your business would benefit most from revolving credit (a line of credit or business credit card) or a term loan paid out in one lump sum. Once you know what kind of loan you’re shopping for, you can compare products from different lenders.
 

2. Decide how much money you need, and how much you can afford to borrow

These two numbers may not be the same, but you’ll want to bring them as close together as possible. Even if you can’t afford to borrow the full amount to fund your vision, be sure you’re applying for enough to reach goals that can move your business — and its revenue — forward. Use a loan calculator to estimate your monthly payments and ensure they are affordable.
 

3. Determine your eligibility

The list of documents above arms you with the information needed to determine your eligibility for different loans. Most online lenders list at least some of their eligibility requirements online. For lenders that don’t, you may need to call and speak to a representative to gauge your eligibility.
 

4. Compare lenders

The same product from different lenders may offer varying interest rates, fees, and repayment terms. Be sure to compare LLC loans from several companies to ensure you find the best fit for your business (and your wallet).
 

5. Gather documentation

Be ready to support your application with a paper trail, including legal records and business and personal banking records.
 

6. Apply for a loan

Many lenders offer fully online applications that can be completed anytime. Traditional lenders, such as banks, may require an in-person visit or phone call.
 
Once your application is received, there will likely be a processing period while the lender reviews your documentation. This could range from a few hours up to weeks, depending on the lender. You’ll then hear about whether you’ve been approved and, if so, for how much.

FAQs about LLC loans

Methodology

To choose the best LLC loans, we ensured all loans featured are broadly available across the United States. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, required time in business, minimum annual revenue and fees. Additionally, lenders were evaluated for notable features such as funding speed and nontraditional eligibility criteria.