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Best LLC loans in July 2024

Jun 12, 2024
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Limited liability company (LLC) loans are small business loans used to cover just about any business need. This includes funding 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. To find the right one for your business, take a look at our top picks and advice on how to find and qualify for the best LLC loans.

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Best for building business credit

4.6

Loan amount
$25k- $500K
Term: 6 - 84 months
Interest rate
Starting at 7.49% simple interest
Fastest funding
2 business days
Apply nowArrow Right

on BusinessLoans.com

Best for LLC line of credit

4.4

Loan amount
$5k- $250K
Term: 6 - 12 months
Interest rate
Starting at 7.80%
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Best for short-term LLC loans

4.6

Loan amount
$5k- $250K
Term: 18 - 24 months
Interest rate
Starting at 29.90% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Best for term loans

4.4

Loan amount
$25k- $5M
Term: 6 - 300 months
Interest rate
Starting at 7.99%
Fastest funding
1 business day
Read our reviewArrow Right

on Bankrate

Best for early payoff

4.4

Loan amount
$10k- $500K
Term: 4 - 18 months
Interest rate
Factor Rates Starting at 1.1%
Fastest funding
1 business day
Apply nowArrow Right

on partner site

Best for equipment loans

4.3

Loan amount
$10k- $500K
Term: 12 - 60 months
Interest rate
Starting at 5.99% APR
Fastest funding
1 business day
Read our reviewArrow Right

on Bankrate

Best for unsecured loans

4.2

Loan amount
$10k- $1M
Term: 4 - 60 months
Interest rate
Factor rate from 1.10 - 1.36
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Best for LLC bank loans

4.3

Loan amount
Starting at $25k
Term: 6 - 18 months
Interest rate
Starting at 9.50%
Fastest funding
1 business day

Best for SBA loans

3.0

Loan amount
$115k- $15M
Interest rate
Not disclosed
Fastest funding
Not disclosed
Read our reviewArrow Right

on Bankrate

Compare the best LLC loans in July 2024

To find the best LLC business loan lender, take a look at the table below. We highlight what each LLC lender is best for and the minimum requirements to help you find the right match. 

LENDER BEST FOR MIN. CREDIT SCORE LOAN AMOUNT MIN. TIME IN BUSINESS
Building business credit 660 $25,000 to $500,000 24 months
LLC line of credit 625 $5,000 to $250,000 24 months
Large term loans 600 $25,000 to $5 million 6 months
Early payoff 660 Up to $500,000 6 months
Equipment loans 600 Up to $250,000 24 months
Unsecured loans 550 $10,000 to $1 million 3 months
Short-term LLC loans 625 $5,000 to $250,000 12 months
LLC bank loans 700 From $10,000 24 months
SBA loans Not stated Up to $15 million 24 months

A closer look at our top LLC business loans

After reviewing the table above, take a closer look at our top lenders. Here you can learn more about each lender, who their products are best for and any standout features that can help you find the right lender for your LLC. 

Funding Circle: Best for building business credit

Overview: Funding Circle offers business term loans and business lines of credit, and it’s one of the few online lenders to offer SBA 7(a) loans. Its repayment terms are long — offering terms of up to 10 years — compared to many online lenders that offer short terms of 24 months or less. Plus, to qualify for a loan, you only need $50,000 in annual revenue, a much lower standard than most lenders’ requirement of $100,000 or more.

Bluevine: Best for LLC line of credit

Overview: Bluevine specializes in offering business lines of credit up to $250,000 and a business checking account. They also offer term loans through a lending partner. Bluevine starts its line of credit interest rates at 6.20 percent simple interest. While this is a competitive rate, it doesn’t factor in fees, which can increase the cost of the loan. You can choose between a six- or 12-month repayment term, standard for a business line of credit.

SMB Compass: Best for large term loans

Overview: SMB Compass’s loan choices include term loans, lines of credit, asset-based loans and inventory and invoice financing. These offerings inclue both conventional and alternative business loans, more options than most lenders provide. It also offers low interest rates, starting at 5.25 percent APR. Many online lenders offer starting interest rates in the double digits or higher, making SMB Compass competitive.

National Funding: Best for early payoff

Overview: National Funding offers short-term loans as well as long-term equipment loans or leases. Its shortest repayment term is four months, allowing you to get a loan for a quick injection of capital that you can pay off quickly. Most loans offer terms starting at six months to a year. Since it accepts fair personal credit of 660 or higher, you can get approved for a loan that you may not be able to receive from a traditional bank.

Triton Capital: Best for equipment loans

Overview: Triton Capital offers a fast funding solution if you’re in the market for equipment financing or a working capital loan. You can also apply for an SBA loan, a rare find among online lenders. All its loans keep low interest rates on par with what you’d find at your local bank, starting at 5.99 percent for equipment financing. Its loan amounts are also accessible, starting at $10,000 to help businesses making small purchases.

Taycor Financial: Best for unsecured loans

Overview: Taycor Financial offers a variety of unsecured loan products for businesses, including business lines of credit, term loans and merchant cash advances. It’s one of the more experienced fintech lenders out there, helping small businesses for nearly 30 years. It also sets some of the most lenient credit and business requirements, accepting just three months in business and personal credit scores as low as 550. 

OnDeck: Best for short-term LLC loans

Overview: OnDeck is known for its short-term loans and business lines of credit, offered online with relaxed requirements compared to traditional banks. To get approved, you need a FICO score of just 625, $100,000 in annual business revenue and one year in business. OnDeck also boasts same-day funding if you get your application in early during weekdays.

Bank of America: Best for LLC bank loans

Overview: Bank of America is one of the largest banks in the United States, offering almost every financial service imaginable, from banking to investing. Homing in on business loans, this household name provides lines of credit, term loans, SBA loans, equipment loans and commercial real estate loans. While many lenders narrow down to a few choices, Bank of America opens up the possibilities on the types of business loans you can get. Plus, you get the added benefit of in-person bank support through branches all across the country.

Live Oak: Best for SBA loans

Overview: Live Oak’s specialty is in serving the industry with SBA 7(a) and 504 loans, unusual since most fintech lenders don’t offer SBA loans at all. Furthermore, you can get an SBA loan with a personal credit score of 650, while most SBA lenders require stronger credit. 

What is an LLC loan?

A limited liability company (LLC) 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 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. Like other business loans, you can use LLC loans to cover business-related expenses. This includes:

  • Inventory purchases
  • Equipment purchases
  • Real estate 
  • Marketing 
  • Startup costs
  • Working capital expenses  

How does an LLC loan work?

An LLC loan works much like any personal or business loan.

You can apply for the loan by visiting the lender’s website or in person and filling out an application. Typically, you’ll need to provide some details, such as how much you want to borrow, why you’re applying for a loan and your business’s financial situation. 

If you’re approved, the lender will give you its loan offer, including the amount, rates, fees and repayment term. If you accept, the lender will disburse the funds to your LLC’s bank account. You’ll then have to pay the loan according to the terms laid out in the loan agreement.

Secured vs. unsecured LLC loans

When you’re getting a loan for your LLC, you can choose between a secured or unsecured business loan. A secured loan backs the loan with business assets, which helps reassure the lender that you can repay the loan. Since securing the loan is less risky to the lender, you could be granted lower interest rates or more favorable repayment terms. 

An unsecured LLC loan is a business loan that doesn’t back the loan with business assets. If you couldn’t make the payments, the lender would have to take legal action to get repaid from business assets if you default. But to get an unsecured business loan, you may need a stellar financial picture, such as a high credit score, ample time in business and steady income.

Requirements for an LLC loan

Every lender will set its own requirements for an LLC loan. In general, lenders mostly care about whether you’ll pay the money back and use their requirements to reduce the odds of lending to someone who defaults on the loan.

Some common criteria lenders use include:

  • Time in business. The newer your LLC, the riskier it looks as a borrower. Some lenders will want your LLC to be anywhere from six to 24 months old before applying for a loan.
  • Revenue. Your LLC must have sufficient income to cover the monthly cost of the loan. The more money your company brings in each month, the easier it will be to qualify for a loan and the more you’ll be able to borrow.
  • Expenses. Along with revenue, the lender will look at your company’s current debts and expenses. The less your LLC spends in comparison to its revenue, the better your chances.
  • Credit history. Your LLC has its own credit score, and your lender will want to examine your company’s credit to make sure it isn’t a risky borrower. Some lenders may also ask for a personal guarantee if your LLC has limited credit or is too new.

You’ll also need some documents to provide to the lender, including:

  • Personal information and bank statements
  • Personal tax returns
  • LLC tax returns, possibly for the last three years
  • Quarterly tax receipts
  • Recent LLC bank and financial statements
  • Business tax ID or Employer Identification Number
  • Licenses or permits 
  • Business formation documents
  • Unpaid invoices
  • Business plan or funding request
  • Commercial lease
  • SBA forms
  • Collateral appraisals and proof of ownership
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Bankrate Insight

Even though an LLC business structure offers certain protections from personal liability, most lenders may require you to sign a personal guarantee. This essentially waives your protections and makes you personally responsible for paying off your business debt.

Types of LLC loan

There are many types of LLC business loans. Some have strict eligibility requirements and are usually only available to business owners with great credit and strong business credentials. 

But there are also bad credit business loans. These types of loans are good options for any LLC that would struggle to qualify for traditional financing, including newer LLCs and business owners with low credit scores. Depending on your credit score, revenue and time in business, business loans for bad credit may have loan amounts of $100,000 or less. Here’s a look at some of the most popular options:

Pros and cons of LLC loans

Before you apply for an LLC loan, you need to consider the pros and cons to determine if it will truly help your business.
 

Pros:

  • Access to cash. If your LLC needs money to cover a bill or expand, loans will help you get that money quickly.
  • Flexible loan choices. LLCs can usually get any type of business loan as long as they meet the minimum requirements. 
  • Build credit. Getting a loan for your LLC will help you start building credit for your business.

Cons:

  • Personal guarantees. Many lenders will require that you sign a personal guarantee stating that you’ll pay the loan back using your own money if the LLC defaults. That eliminates the protection the LLC provides.
  • Potentially high borrowing costs. If you haven’t had time to build your business credit, you may not qualify for the lowest interest rates available. 
  • Some lenders lack transparency. Unlike with consumer loans, business lenders aren’t legally required to disclose their interest rates and fees. You may have to go through the application process with several lenders to compare.

Who should get an LLC loan?

LLC business loans are good for businesses structured as a limited liability company that will be able to generate enough income to cover the costs of a loan. These loans can cover many business-related expenses like expansion or cash flow issues. Invoice factoring, for example, could help an LLC cover its immediate expenses while waiting for customers to pay their invoices.
 
LLC loans are also a good option for businesses in underserved communities, which typically have difficulty getting access to capital. This is especially true of minority business owners. Multiple studies show that minority entrepreneurs are impacted by racial bias, receiving inferior loans and services compared to other borrowers, even with stronger finances. This bias is mitigated when Black business owners register their business as an LLC or corporation.
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Bankrate Insight

When you’re looking for LLC loans, watch out for these red flags.

  • Upfront application fees. Lenders shouldn’t force you to pay a fee just to apply for a loan. There’s a good chance the lender will take the money and never give you a loan.
  • Early repayment fees. Some lenders charge this fee if you pay the loan off ahead of schedule. Try to avoid this fee so you don’t get punished for good financial practice.
  • SBA loan scams. If a lender is offering an SBA loan, make sure they are legitimate. The SBA loan site lets you look up lenders to see if they are offering SBA loans and how much they have lent to others.
  • Debt relief. If you’re looking to use an LLC loan to consolidate debt, be wary of any lender offering a debt relief plan that sounds too good to be true.

Alternatives to LLC loans

Small business loans for LLCs are just one way that you can get funding for your company. If you’re not sure a loan is right for you, consider these alternatives to LLC business loans.
 

Where to get an LLC business loan

There are many different places to get an LLC business loan. Most large national banks have business loans, and there are also specialized online lenders.

Online lenders often offer faster approval or more flexible requirements but may charge higher rates if you don’t have good credit.

Another place to look is your local credit union or regional bank. These lenders are often better able to work with you to help you achieve your goals. Because they’re focused on a smaller region and group of customers, they offer a more personalized experience.

How to manage an LLC loan

Once you’re approved for an LLC loan, you’ll need a strategy to stay on top of loan payments. Keeping tidy records of your business’s current and projected revenue will help you make decisions about where to fit loan repayments into your business budget. 

For example, if you run short on revenue during one season, you can evaluate your budget to cut expenses. When revenue peaks again, you could pay down the loan or save up for future payments. 

Throughout the loan process, keep in close contact with your lender, especially if you think you’ll miss a payment. As an LLC, you do have some protection from lenders coming after your personal assets if you miss loan payments. But many lenders ask you to sign a personal guarantee, which would bypass that legal protection. 

To avoid problems, you could work with your lender on delaying payments or coming up with a new repayment plan that fits your current financial situation.

Frequently asked questions about LLC business loans

How we choose the best LLC loan lenders

Bankrate's trusted small business loan industry expertise

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best business LLC loans, we ensured loans 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.
 
When evaluating lenders, we use a 22-point scale to measure quality in five key areas: