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Best LLC loans in September 2023

Sep 21, 2023
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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

Bankrate Score
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 partner site

Best for LLC line of credit

4.4

Bankrate Score
Loan amount
$5k- $250K
Term: 6 - 12 months
Interest rate
Starting at 6.20%
Fastest funding
1 business day
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on partner site

Best for term loans

4.4

Bankrate Score
Loan amount
$25k- $5M
Term: 6 - 300 months
Interest rate
Starting at 7.99%
Fastest funding
1 business day
Apply nowArrow Right

on partner site

Best for early payoff

4.4

Bankrate Score
Loan amount
$10k- $400K
Term: 4 - 18 months
Interest rate
Starting at 1.11 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on partner site

Best for equipment loans

4.3

Bankrate Score
Loan amount
$10k- $500K
Term: 12 - 60 months
Interest rate
Starting at 5.99% APR
Fastest funding
1 business day
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on partner site

Best for unsecured loans

4.2

Bankrate Score
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 partner site

Best for short-term LLC loans

4.6

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

Best for LLC bank loans

4.3

Bankrate Score
Loan amount
Starting at $25k
Term: 6 - 18 months
Interest rate
Starting at 8.25%
Fastest funding
1 business day

Best for SBA loans

3.0

Bankrate Score
Loan amount
$115k- $15M
Interest rate
Not disclosed
Fastest funding
Not disclosed
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Compare the best LLC loans in September 2023

LENDER BEST FOR MIN. CREDIT SCORE LOAN AMOUNT MIN. TIME IN BUSINESS
Funding Circle Building business credit 660 $25,000 to $500,000 24 months
Bluevine LLC line of credit 625 $5,000 to $250,000 24 months
SMB Compass Large term loans 600 $25,000 to $5 million 6 months
National Funding Early payoff 600 $10,000 to $400,000 6 months
Triton Capital Equipment loans 600 $10,000 to $500,000 24 months
Taycor Financial Unsecured loans 550 $10,000 to $1 million 3 months
OnDeck Short-term LLC loans 625 $5,000 to $250,000 12 months
Bank of America LLC bank loans Not stated From $25,000 6 months
Live Oak SBA loans Not stated $115,000 to $15 million 24 months

A closer look at our top LLC business loans

Funding Circle: Best for building business credit

Overview: The fintech lender Funding Circle blends the convenience of an online application with the personal touch of assigning a dedicated account manager to review your financing needs. The company offers small business lines of credit and SBA 7(a) loans in addition to their business term loans. 

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 can help grow your business credit score. Its loans also offer long repayment terms to business owners, which can help make loan payments more manageable. Its repayment terms stretch from six months to seven years. 

Who Funding Circle is good for: Funding Circle works well for businesses with solid personal credit scores of at least 660. It does welcome low-revenue businesses down to $50,000 per year, an unusually low standard for any lender.

Bluevine: Best for LLC line of credit

Overview: Founded in 2013, Bluevine is a fintech company offering high-yield checking accounts as well as unsecured lines of credit for established small businesses. You can access its revolving credit line as many times as you need, replenishing the available credit as you pay down past withdrawals. 

Why Bluevine is the best for LLC line of credit: Bluevine offers a speedy online application process and seamless online dashboard for your line of credit. Once approved, you can withdraw funds and get them deposited to your bank account within 24 hours. You can borrow from $5,000 to $250,000, choosing between a six- or 12-month term. You can also choose between weekly or monthly payments, unlike some lines of credit that only allow you to repay weekly. Well-qualified and well-established borrowers may enjoy a low starting interest rate.

Who Bluevine is good for: Bluevine is ideal for LLCs that have been around for at least two years and have a high level of revenue. It offers lines of credit to businesses with at least $40,000 in monthly revenue for six-month repayment terms and $80,000 monthly for 12-month terms. These are stricter requirements than what most lenders set. Bluevine may also work well if your LLC wants to combine banking and lending services, helping you manage your accounts in one place.

SMB Compass: Best for large term loans

Overview: SMB Compass bills itself as a bespoke business financing company that tailors its loan offers to each of its small business clients. SMB Compass’s loan choices include term loans, lines of credit, asset-based loans and inventory and invoice financing. It also offers low interest rates, starting at 7.99 percent APR.

Why SMB Compass is the best for large term loans: SMB Compass’s term loans offer loan limits from $25,000 to $5 million, meaning it can successfully serve both small and large companies. Its standard term loans offer wide-ranging repayments from two to 25 years. And it’s bridge loans have repayment terms of up to 36 months — over 12 months longer than many other short-term loans.

Who SMB Compass is good for: SMB Compass is a good choice for companies that need large term loans and want to explore a variety of options with one lender. Businesses need strong credit to qualify, at least a business or personal credit score of 600 to 680, specific to each loan. Both SBA and term loans also need high annual revenue of at least $500,000.

National Funding: Best for early payoff

Overview: National Funding calls itself “a pioneer in alternative lending.” It offers several business loans, including equipment financing, working capital loans and short-term loans, all with low minimum credit score requirements.

Why National Funding is the best for early payoff: While some lenders charge prepayment penalties, National Funding offers early payoff discounts. For working capital loans, you get a 7 percent discount on the remaining amount you owe if you repay within the first 100 days. For equipment loans, you get 6 percent early repayment discount. 

Who National funding is good for: National Funding works well for business owners looking for short-term, online business loans. You’re most likely to receive the early payoff discount if you borrow a small amount that you can repay within the first three to four months.

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. It keeps low interest rates on par with what you’d find at your local bank, starting at 5.99 percent for equipment financing. 

Why Triton Capital is the best for equipment loans: Triton Capital can be used for anything from heavy machinery to medical equipment. It offers a generous range of loan sizes from $10,000 to $500,000, serving both small and midsize equipment purchases. You also have repayment flexibility that you can match to your business’s seasonality. Choose from either monthly, quarterly, annual, semi-annual or even seasonal payments. 

Who Triton Capital is good for: LLCs that make $350,000 or more each year may be well-qualified for Triton Capital's equipment loans. Triton Capital focuses on helping small businesses that struggle with qualifying for traditional lending. A spokesperson stated that it’s also willing to work with startup businesses.

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 over 30 years.

Why Taycor Financial is the best for unsecured loans: For lines of credit, term loans and cash advances, you won’t need to provide collateral if you’re borrowing up to $500,000. All three loan choices offer small loan sizes, fast funding and short repayment terms, good for covering small or emergency expenses. 

Who Taycor Financial is good for: Business owners with bad or fair credit can qualify for its unsecured loan options. It’s also welcoming to startups that need a business loan for new LLCs, though you'll need three months in business. Most online lenders want to see six months to a year or more, while traditional banks often need at least two years in business.

OnDeck: Best for short-term LLC loans

Overview: OnDeck was founded in 2006. Its proprietary software collects thousands of data points about a business’s operations to determine loan eligibility. It’s also committed to providing funding quickly — as fast as the same day for term loans up to $100,000.

Why OnDeck is the best for short-term LLC loans: OnDeck offers term loans with repayments going from 18 to 24 months. Loan amounts start at $5,000, much lower than the typical $10,000 to $25,000 where most term loans begin. This low amount makes its term loans accessible to small businesses that only need a limited amount of financing.

Who OnDeck is good for: OnDeck works well for LLC business owners with fair credit. LLCs only need $100,000 in annual revenue and a personal credit score of 625 to get a term loan. But if you have strong credit, you may qualify for better interest rates. OnDeck’s starting rate for term loans is 29.9 percent APR, steep compared to other lenders that may start at 6 percent.

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. 

Why Bank of America is the best for LLC bank loans: Bank of America provides low starting interest rates for its business loan products, ideal for businesses that qualify with the traditional lender. Bank of America also fills the gap for business owners needing to build credit through its cash-secured line of credit. You can get approved for credit limits down to $1,000, one of the lowest line of credit limits available. And all you need is at least $1,000 to deposit as security. 

Who Bank of America is good for: Bank of America is good for LLCs that value being able to apply for a loan in person or already do business with the bank. Its cash-secured line of credit is accepting of new businesses under two years old and with little revenue.

Live Oak: Best for SBA loans

Overview: Founded in 2008, Live Oak's mission is to become “America’s small business bank.” It now offers lending and banking services to all types of businesses. Its products include high-interest business savings as well as SBA loans, business acquisition loans or expansion loans customized to your project. 

Why Live Oak is the best for SBA loans: Live Oak is one of the few fintech lenders in the SBA Preferred Lender Program. This status means it can streamline the SBA loan process, approving loans three to four weeks faster than the usual timelines. SBA loan approvals typically take 30 to 90 days. 

Live Oak was the top lender of SBA 7(a) loans by dollar amount in FY 2022, showing significant experience with SBA financing. It also doesn’t carry a prepayment penalty for loans with less than 15-year terms. 

Who Live Oak is good for: Live Oak can help for-profit businesses that can come prepared with at least a 10 percent down payment for their project. For 7(a) loans, you’ll need a minimum personal credit score of 650 or higher.

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

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 up to your limit and repay over time. Line of credit rates can be high, especially if you have bad credit.

SBA loans

SBA loans are partially guaranteed by the U.S. Small Business Administration and have generous loan amounts and favorable interest rates.Depending on the loan type, maximum funds can range from $50,000 all the way to $5 million. SBA loans can be slow to fund and hard to qualify for, but in the event of default, the SBA will repay your lender the portion of the loan it guaranteed.  

  • SBA 7(a) loan: Its most popular loan program for general purposes like working capital
  • SBA 504 loan: Financing for new construction or renovation projects or buying equipment or real estate
  • SBA microloans: Small loans up to $50,000 offered through approved microlenders, often nonprofits serving disadvantaged communities 
  • Express loans: A 7(a) loan with express approvals offering loans up to $500,000
  • Economic Injury Disaster Loans: Provides cash to cover operating expenses that a business can’t cover because a government-declared disaster caused business interruption
  • CAPLines: Lines of credit used to cover expenses for specific work contracts or during down seasons
  • Community Advantage loan: A 7(a) loan up to $350,000, provided through approved community lenders, often serving underserved communities like low-income areas

Equipment loans 

Equipment loans work well for LLCs looking to boost productivity or offer a new product or service. These loans provide financing for one or more pieces of equipment over a term of several years. They may offer lower interest rates than standard term loans, typically ranging from 5 percent to 35 percent. Lenders can offer lower rates or approve businesses with less experience or credit history because the collateral offsets risks for lending to these businesses.  

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 cash flow.

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.

Invoice financing and factoring

Invoice financing offers a lending solution based more on the security of invoices for services or products your LLC has already delivered. It doesn’t weight your business’s past credit history and financial outlook as heavily as standard business loans. It comes in the form of a financed loan or factoring. But this type of business funding charges fees based on the outstanding invoice amount, and fees may go up the longer your clients don’t pay. 

Invoice factoring is a type of invoice financing that allows to sell your unpaid invoices to the factoring company for between 70 percent and 90 percent of your invoiced amount. This is a short-term solution for small businesses with inconsistent cash flow. Then, the company collects those invoices and pays you the remainder, deducting a percentage of the loan amount as a fee.

Merchant cash advances

Merchant cash advances are a form of short-term alternative financing. You receive a loan based on past credit and debit card sales and make daily or weekly payments based on future sales. 

Since they’re not technically a loan, usury laws don’t apply, which means there are no limits on how much interest you can get charged. That’s why it’s possible to find yourself paying high interest rates from 30 percent to 99 percent and up with MCAs.

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 covering 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 service compared to other borrowers even with stronger finances. This bias is mitigated when Black business owners registered 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.
 
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Bankrate Insight

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

Methodology

Clock Wait
47
years in business
Credit Card Search
30+
lenders reviewed
Loan
22
loan features weighed
Rates
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: Accessibility, affordability, transparency, customer service and flexibility. Based on the results, lenders are given a rating between 1 and 5:

  • 4.5 or higher: Outstanding
  • 4 to 4.5: Excellent
  • 3.5 to 4: Good
  • 3.5 and under: Average