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Best startup business loans in June 2023

May 24, 2023
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Looking for the best startup business loans can be a daunting process since there are so many lenders, rates and loan types. Few banks work with startups — instead, funds are available through nontraditional lenders and even crowdfunding platforms. We’ve created this page to make finding some of the top business loans for startups easier. 

We picked the best loans for businesses under a year old based on loan amounts, terms and the minimum credit score to obtain the loan, as well as other features that might make them attractive to startups.

Read on for information about the kinds of business loans available and advice on how to choose the best lender.


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Best for working capital


Bankrate Score
Loan amount
$5k- $1.4M
Term: 6 - 16 months
Interest rate
Starting at 1.10 factor rate
Fastest funding
1 business day

Best for bad credit


Bankrate Score
Loan amount
$25k- $400K
Term: 3 - 15 months
Interest rate
1.11 factor rate
Fastest funding
1 business day

Best for equipment loans


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

Best for term loans


Bankrate Score
Loan amount
$10k- $500K
Term: 4 - 24 months
Interest rate
Fastest funding
1 business day

Best for fast funding


Bankrate Score
Loan amount
$1k- $150K
Term: 3 - 6 months
Interest rate
Starting at 4.66%
Fastest funding
1 business day

Best for community support


Bankrate Score
Loan amount
Term: 1 - 36 months
Interest rate
Fastest funding
5 business days

Compare the best startup business loans in June 2023

Credibly working capital loan Bad credit 550 $25,100-$400,000 6 months
Triton Capital equipment loan Equipment loans 600 $10,000-$500,000 Startups eligible
Quickbridge small business loans Term loans 600 $10,000-$500,000 6 months
Fundbox line of credit Fast funding 600 $1,000-$150,000 6 months
Fora Financial Revenue Advance Working capital 600 $5,000-$1.4 million 6 months
Kiva microloan Community support Not applicable $1,000-$15,000 Not disclosed

A closer look at our top business loans

Credibly working capital loan: Best for bad credit

Overview: Credibly is a direct lender for working capital and merchant cash advance loans, offering additional products to partners The company focuses on small and medium-sized businesses. Businesses may be funded in as little as 24 hours following approval. 

Why Credibly is the best for bad credit: Credibly has a minimum credit score of only 550. The company doesn’t just look at credit scores, but also weighs other data like bank statement information.

Who Credibly is good for: Businesses that have generally good revenue but have encountered short-term funding needs. Businesses that plan to repay their loan early may benefit from a 20 percent discount on their remaining factor, though conditions apply.

Triton Capital equipment loan: Best for equipment loans 

Overview: Triton Capital states it’s helped thousands of businesses in over 175 industries acquire needed equipment. Its online application is short and simple. This loan helps businesses to access funds for large-scale equipment and technology, so the annual revenue requirement is higher, at $350,000. 

Why Triton Capital is the best for equipment loans: Triton has a large loan amount range of $10,000 to $500,000, so it could fund anything from a point-of-sale system to larger-scale manufacturing equipment. Though Triton Capital doesn’t state a minimum time in business, a representative told Bankrate that the company is “typically able to offer equipment loans to startup businesses” — a rarity for this type of loan.

Who Triton Capital is good for: Startups that require a major equipment investment to get their business up and running.

Quickbridge small business loans: Best for term loans

Overview: Quickbridge, which National Funding owns, was founded in 2011 to provide working capital to small businesses that can’t get approved by traditional lenders. Quickbridge offers term loans up to $500,000 that can be funded as quickly as 24 hours after application.

Why Quickbridge is the best for term loans: Quickbridge has a simple application process, and borrowers can receive funds within days. The company also has short-term loans and offers an early payoff discount that could help you save money. 

Who Quickbridge is good for: Startups that need fast cash. The company advertises a particular specialty in funding startups in restaurant, healthcare, trucking and real estate industries.

Fundbox line of credit: Best for fast funding

Overview: Fundbox has been around since 2013. It’s an embedded working capital platform for small businesses. Loan amounts range from $1,000 to $150,000, making it a good source for a possible microloan. The company does not use traditional interest rates but instead an amortized weekly fee.This loan is unsecured.

Why Fundbox is the best for fast funding: The application is online, and approval can come in as little as three minutes. You can apply and draw funds from Fundbox’s app. The time to funds is also listed as soon as the next business day.

Who Fundbox is best for: Startups who need a small cash injection within a day or two.

Fora Financial revenue advance: Best for working capital 

Overview: Fora Financial started in 2008 as Paramount Merchant Funding. A key feature of the revenue advance is the low credit score needed. Revenue advances allow you to borrow within the loan amount range against future revenue. Terms on the loan are variable. Payback works as a fixed percentage of daily or weekly receipts. You can also increase the amount borrowed after you pay back 60 percent of the original loan.  

Why Fora Financial is the best for working capital: A standout feature is the loan’s range, going from just $5,000 up to $1.4 million. And if you want to pay your loan off early, Fora doesn't charge prepayment penalties and even offers prepayment discounts.

Who Fora Financial is best for: Startups with healthy revenue and big plans to expand.

Kiva microloan: Best for community support

Overview: Kiva is an international nonprofit founded in 2005 in San Francisco. Its website states that 1.7 billion people around the world don’t have access to a bank. To serve those entrepreneurs, Kiva offers zero-interest loans for up to $15,000 and an unusual crowdfunding model.

Why Kiva is the best for community support: Kiva states that 2.5 million people globally have raised over $1 billion on Kiva. Because Kiva requires no credit check, this could be a good option for businesses with poor or limited credit history but high visibility and grassroots support.

Who Kiva is best for: Small online businesses that only need a few thousand dollars for a short-term project that can improve their operations.

What is a startup business loan?

A startup business loan helps newer businesses with little or no credit history access financing. The lenders who provide these loans may have lower credit rating requirements, if they have credit requirements at all. Many look at financial health indicators beyond credit scores, such as gross sales or recent bank statements. 

Lenders may offset their risk by asking for a personal guarantee, which makes the business owner responsible for the debt if the business defaults. Lenders may also ask for higher interest rates on loans for startups. SBA loan rates can’t exceed a limit set by the government, but other loans don’t have the same ceiling.

How do startup business loans work?

Startup loans are like any other business loan — just made available to startups. You’ll apply, receive a lending decision, get your funds and repay them over time, plus interest.

One key difference is the amount of money you can receive. Due to the added risk startups pose to lenders, maximum amounts tend to be smaller than they are for well-established businesses. Don’t expect to qualify for the maximum advertised amount. According to lending marketplace Lendio, startup loan amounts often range between $9,000 and $20,000.

Funding timelines are similar to other business loans. SBA loans can take up to 90 days to receive because there is an additional underwriting process, but other loans may be funded in just a couple of days. 

In addition to the usual documentation, such as pay stubs, revenue reports and proof or financial stability, lenders may have additional documentation requirements for startup loans. Many lenders ask startups to provide a comprehensive business plan to explain how they will use the money.

Requirements for small business loans

Exact requirements for a startup business loan will vary depending on the lender, but most will require:

  • A minimum amount of time in business, often three to six months 
  • A minimum personal credit score (good or excellent credit will increase your chances of approval)
  • Industry: If you’re operating in a risky industry with a high failure rate, lenders are less likely to approve your loan
  • A minimum amount of annual revenue 
  • A business plan that proves how the money will benefit the business
  • A personal guarantee and/or collateral to mitigate the risk to the lender

Types of startup loans

Most types of business loans are available to startups, so long as you can find a lender that will work with you. Types of startup loans that may particularly interest you include:

Line of credit

Business lines of credit include set credit limits and draw periods. You can borrow, pay back the loan and then borrow again during the draw period.

One plus: You can take out what you need in credit limits while only paying interest on what you borrow. It can also help businesses that make frequent purchases. 

Equipment financing

This is financing for technology and equipment you may need. It could be anything from a computer system to manufacturing equipment. These loans offer competitive interest rates and the loan amount is set to cover the equipment you need.

However, they tend to be secured by the property you buy, so you could lose that property if you default on the loan.     


Microloans are small loans meant to help a business get off the ground. Interest rates tend to be lower, but microloans might not be a good option if you need more than $50,000.

SBA loans

This popular loan type is backed by the U.S. Small Business Administration. These loans come in various subtypes based on your needs, like microloans or real estate purchases.

However, they’re more difficult to get approved for, and the application and funding process can take longer than other small business loan types.

Pros and cons of startup loans

There are benefits and potential pitfalls to using startup loans to fund business operations. 



  • Fast cash: Many online lenders have quick online applications and fast turn around times for receiving cash. 
  • Business growth: Startup loans can provide much needed capital to buy equipment or fund payroll to get a business off the ground. 
  • Credit building: Startups begin with little to no business credit score. A successful startup loan may make it easier to get additional funding later by establishing business credit.


  • Higher interest rates: Some startup loans have higher than average interest rates. 
  • Personal risk: Startup loans almost always ask for a personal guarantee, so new business owners are putting personal assets on the line.
  • Pricy payments: Making daily, monthly or weekly payments on a loan can strain a startup's already-stretched finances.

Alternatives to startup loans

If a startup loan is not the right fit, there are other ways to get a cash injection as a new business. 

Where to get a startup loan

You have a few options for getting startup loans. The most traditional lender is a bank or credit union, but you should investigate all your options to find the best rate.

But banks may have more stringent requirements, like higher credit scores or time in business requirements. But building a relationship with a bank or credit union early on may help a business get approved for other lending products later. Approval may also take longer. However, you can often go into a physical office and ask questions or do in-person transactions with a traditional bank.

The other main option is to go through an online lender. These services often have mobile or web applications for managing your loans. These lenders often advertise easy applications and fast approvals. Because of these features, online lenders can be a more convenient option for small businesses and startups. Research the lender’s legitimacy before applying, though.

Some nonprofits administer microloan programs, such as SBA microloans. These lenders may take a while to process applications. 

To decide which type of lender holds the most promise, consider:

  • Your company’s time in business
  • Your credit score
  • How fast your company needs money

Bankrate Insight

When looking for a startup loan, look out for the following red flags:

  • Early payoff charges: You don’t want to be penalized for having the ability to pay off a loan sooner than expected. 
  • Unresolved negative reviews: Investigate the lender’s reputation through the Consumer Financial Protection Bureau, Trustpilot and Better Business Bureau. If you see repeated gripes about some aspect of the lenders’ service, be cautious.
  • Unsecured website: If you don’t see a lock icon in your browser’s navigation bar next to the lender’s URL, they may not be able to store and transfer your sensitive information securely.

Who should get a startup loan?

Businesses who are ready to scale up can often benefit from startup loans. These loans can allow a company to hire more employees, buy equipment or ramp up manufacturing.

A startup business that doesn’t have an established business model or any revenue is probably not ready to take on this kind of debt. A business owner who can’t cover losses, including a defaulted business loan, with personal assets should also be wary.

FAQs about startup business loans


To choose the best startup business loans, we ensured all loans featured are broadly available across the United States and have a time in business requirement of six months or less. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, credit score requirements, minimum annual revenue and fees. 

Lenders are evaluated using a 22-point scale that measures 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