Starting or growing a small business takes more than just passion and a great idea—it often requires funding. Whether you’re launching a tech startup, opening a coffee shop, or expanding your online boutique, having access to the right financing can make all the difference. But with so many loan options out there, it’s easy to feel overwhelmed.

That’s where this guide comes in. We’re diving into the best small business loans for entrepreneurs—breaking down what each one offers, how to qualify, and what makes them stand out. Whether you’re just getting started or already in full swing, there’s something here for every stage of your business journey.

Let’s explore your options and help you make an informed decision without all the financial jargon.

Top Small Business Loan Options for Entrepreneurs

Here’s a quick side-by-side look at some of the top small business loans available to entrepreneurs today:

Loan Type	Best For	Loan Amount	Interest Rates	Repayment Terms	Time to Funding
SBA 7(a) Loan	Long-term funding	Up to $5 million	5.5% – 11.5%	Up to 25 years	1–3 weeks
SBA Microloan	Startups and small projects	Up to $50,000	6% – 9%	Up to 6 years	1–2 weeks
Term Loan (Bank)	Established businesses	$25,000 – $500,000+	6% – 15%	1 – 10 years	1 week – 1 month
Business Line of Credit	Flexible short-term funding	$10,000 – $250,000	8% – 24%	Revolving	As little as 24 hours
Equipment Financing	Buying business equipment	Up to 100% of cost	4% – 30%	1 – 5 years	A few days to 2 weeks
Invoice Financing	Unpaid invoices	Up to 100% of invoice	1% – 3% per month	When invoice is paid	24 – 48 hours
Online Loans (Fintech)	Quick access, fair credit OK	$5,000 – $500,000	7% – 99%	3 months – 5 years	1–3 days

Most Popular Loan Types for Entrepreneurs

Here’s a deeper dive into some of the most common and useful loan types available to small business owners and entrepreneurs:

1. SBA Loans

Backed by the U.S. Small Business Administration, SBA loans are a go-to for entrepreneurs. The most popular is the SBA 7(a), known for its high loan limits and long repayment terms. It takes a bit of paperwork and patience, but the low interest rates make it worth it.

Good for: Established businesses with solid credit and financials.

2. Microloans

Need a smaller amount to get your business off the ground? SBA microloans, as well as nonprofit lenders like Accion and Kiva, provide accessible funding with reasonable terms—great for startups and early-stage businesses.

Good for: First-time entrepreneurs or businesses needing $50,000 or less.

3. Business Term Loans

A classic option—borrow a lump sum and repay it over time with fixed payments. These are offered by banks and online lenders and work well for businesses looking to invest in big projects or expansion.

Good for: Businesses with a specific purpose and clear repayment plan.

4. Business Line of Credit

Think of this like a credit card for your business. You draw what you need and only pay interest on what you use. It’s flexible and ideal for handling short-term cash flow hiccups.

Good for: Seasonal businesses or unpredictable expenses.

5. Equipment Financing

Need a new pizza oven or commercial printer? Equipment financing lets you borrow specifically for gear or machinery, often using the equipment itself as collateral.

Good for: Any business needing costly tools or machinery to operate.

6. Invoice Financing

If you’re waiting on customers to pay invoices, this option helps you access that money early. Lenders advance you most of the invoice value upfront, then collect from your customer.

Good for: B2B businesses with slow-paying clients.

7. Online Loans

Fintech lenders like Fundbox, OnDeck, and Bluevine have made getting business funding much faster and more accessible. While rates may be higher, the convenience and speed can be game-changing.

Good for: Entrepreneurs who need quick funding or don’t qualify for bank loans.

FAQs

What’s the easiest small business loan to get?

Online loans and business lines of credit from fintech lenders are often the easiest to qualify for, especially if your credit isn’t perfect. They tend to have more relaxed requirements and faster approvals.

How do I qualify for a small business loan?

Qualifications vary, but typically you’ll need:

• A good credit score (usually 600+)
• A solid business plan
• Proof of income or revenue
• Time in business (typically at least 6 months to 2 years)

SBA loans have stricter standards, while online lenders may approve you with less.

How fast can I get funding?

Online loans and invoice financing can sometimes fund within 24–48 hours. SBA and traditional bank loans usually take longer—anywhere from one week to a month.

What’s the difference between secured and unsecured loans?

Secured loans require collateral (like equipment or property), while unsecured loans don’t. Secured loans usually offer lower rates, but carry more risk if you can’t repay.

Should I choose a loan or a line of credit?

It depends on your needs. If you’re covering a one-time cost (like renovations or a vehicle), a term loan is ideal. For ongoing needs (like inventory or payroll), a line of credit gives you flexibility.

Can I get a loan with bad credit?

Yes, though your options may be limited. Online lenders and invoice financing providers are more lenient. Expect higher interest rates and shorter terms.

Conclusion

There’s no one-size-fits-all when it comes to small business loans. The right choice depends on your business goals, credit history, how fast you need the money, and how much risk you’re willing to take on. From government-backed SBA loans to speedy online lenders, today’s entrepreneurs have more financing options than ever before.

Before signing any loan agreement, read the fine print, understand the repayment terms, and make sure the funding will truly help your business grow—not just temporarily plug a hole.

Done right, a small business loan can be the push that takes your dream to the next level. So explore your options, ask questions, and make the move that’s right for your business.