Jan
10
2024
Americans Don’t Care About the “Care Economy.” Here’s Why They Should
Friday’s jobs report showed growth in the labor market — but it might not show the full story.
Read more
SoFi Blog
Tips and news—
for your financial moves.
Jan
10
2024
New Boost for Student Loan Payments: 401(k) Matches
Companies can now help their employees chip away at their student loans with matching 401(k) contributions.
Read moreJan
08
2024
SMB
{/* Financial Insights Homepage Banner WINNER */}
Small Business Loans
Grow your small
business the right way.
Search for financing
(without impacting your credit score)†
SoFi’s marketplace is owned and operated by SoFi Lending Corp. Expand for Advertising Disclosures.
expand={
/>
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
-
One simple search
Explore your options in one place with no impact to your
credit score.† -
Get up to $2 million
Large or small, grow your business with funding that’s a fit for you.
-
As soon as the same day funding1
Receive funds as soon as the same day you’re approved.
-
Save time
Shop and compare your financing quotes in minutes.
{/* Easily find small business financing in three easy steps. */}
Easily find small business financing
in three steps.
-
Shop in one place.
Use our marketplace search to look for small business
financing quotes. -
Find a quote that works for you.
We’ll match you up with a provider with the financing that suits your goals.
-
Get funded.
You could receive funds as soon as the same day you’re approved1
Search for financing
(without impacting your credit score)†
{/* Peeking Carousel hidden for launch */}
Access the capital your small business
needs with one simple search.
}
heading=”Expansion loans”
topRightPillClassName=””
topRightPillText=”1 / 5″
/>
}
heading=”Equipment loans”
topLeftImg={{
}}
topRightPillClassName=””
topRightPillText=”2 / 5″
/>
}
heading=”Working capital”
topLeftImg={{
}}
topRightPillClassName=””
topRightPillText=”3 / 5″
/>
}
heading=”Payroll financing”
topLeftImg={{
}}
topRightPillClassName=””
topRightPillText=”4 / 5″
/>
}
heading=”Startup financing”
topLeftImg={{
}}
topRightPillClassName=””
topRightPillText=”5 / 5″
/>
Search for financing
(without impacting your credit score)†
{/* Testimonial */}
What is SoFi’s marketplace?
SoFi’s marketplace is our service to help members shop
and find business financing. While SoFi doesn’t provide
business loans directly, our marketplace can help you
quickly find the financing solutions you need for your
business. Explore your options from a provider in minutes
with one simple search.
Search for financing
(without impacting your credit score)†
{/*small business loan*/}
What is a small business loan?
A small business loan or commercial loan is financing for qualified businesses, specifically for business-related activity. This can include funding operating costs, purchasing inventory, managing cash flow, starting a business, or even refinancing existing business debt.
Loans for small businesses are available for both long-term use up to 10 years and short-term use as brief as three months.
Finding the best small business loans for your company may depend on your business needs, qualifications, and structure.
Search for financing
(without impacting your credit score)†
{/*types of SMB loan*/}
What are some types of small business loans?
Not every small business loan is built the same. Here are common types of small business loans to consider:
title: ‘Term loans’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘SBA loans are guaranteed by the U.S. Small Business Administration and offered by approved sources, including banks and specific online lenders. SBA loans can be as large as $5 million, and are available for everything from working capital to commercial real estate investments. They often have lower interest rates and more flexible terms than other financing.’,
title: ‘Small Business Administration (SBA) loans’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘Microloans are business loans usually given by nonprofit organizations or mission-based lenders. Loan amounts are typically $50,000 or less. Microloans can help start a business or support newer businesses in underserved communities. They may have comparatively lenient eligibility requirements.’,
title: ‘Microloans’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘Equipment loans allow businesses to purchase or upgrade necessary equipment. The equipment acts as collateral for the loan, and the length of the loan often equals the expected lifespan of the equipment. Rates depend on equipment type and borrower qualifications.’,
title: ‘Equipment financing’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘Business lines of credit provide access to cash up to a set credit limit and charge interest only on the amount businesses borrow. Most lines of credit are revolving, like a credit card. Others may end after borrowers spend the total credit line amount and pay it off.’,
title: ‘Business line of credit’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘Merchant cash advances offer borrowers up-front cash but require payments with a percentage of future credit card sales. This means the payment amount will fluctuate as the percentage is based on the borrower’s business revenue. Merchant cash advances are for businesses with credit profiles needing improvement.’,
title: ‘Merchant cash advance’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘Invoice financing lets businesses use outstanding invoices as collateral on a cash advance from a lender. Invoice financing can help businesses with long payment cycles unlock cash tied up in unpaid invoices.’,
title: ‘Invoice financing’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘Invoice factoring allows businesses to get fast cash up front in exchange for unpaid customer invoices. Invoice factoring can help business-to-business (B2B) companies that deal in customer invoices, though it comes with additional fees.’,
title: ‘Invoice factoring’
},
{
ctaIsButton: false,
ctaLink: ”,
ctaText: ”,
hasCta: false,
imgSrc: ”,
text: ‘Commercial real estate loans are for purchasing or improving a structure or property used for business purposes only. They can help a small business expand and build equity. While it resembles a mortgage loan, a commercial real estate loan carries different protections.’,
title: ‘Commercial real estate loans’
}
]}
/>
{/*FAQ*/}
Frequently asked questions about small business loans.
What can a small business loan be used for?
There are many ways you can use a business loan, as they provide a flexible solution to cover business-related expenses when there are insufficient funds available out-of-pocket. Small business loans are generally used to: launch the business, purchase equipment and inventory, expand or cover daily operations, or to strengthen the firm’s finances. They can also be used to refinance or consolidate existing business debt to better terms and interest rates.
Where can I get a small business loan?
You may seek these loans at banks, credit unions, online small business lenders, and peer-to-peer (P2P) networks. Each type of lender has unique requirements as does each specific lender. To save time, you can sometimes find and shop quotes from multiple providers simultaneously with an online marketplace like SoFi’s marketplace.
What do I need to apply for a small business loan?
Loan requirements vary by type of loan and individual lender. Small business lenders are usually looking for: strong business and personal credit scores, a predictable revenue stream, a low debt-to-income ratio (ideally below 36%), and a business plan. Documentation such as at least four months of bank statements, proof that you are the owner and are legally allowed to run your business, and relevant permits may be required. Lenders will expect a business checking account separate from personal finances.
Learn more: Guide to Getting a Small Business Loan
What credit score do I need to get a small business loan?
Small business loans can be based on personal and/or business credit, depending on the type of loan and other financial criteria that will vary by lender. Generally, the higher your credit score, the better rates and terms you’ll qualify for. Applications for small business loans are all different, and you may find you qualify with certain lenders while you don’t with others.
What are the interest rates for small business loans?
Interest rates vary, depending on the loan size, term, lender, and applicant credit score. Different lenders have different underwriting requirements, which will also impact your interest rate. These factors can include your monthly revenue, your time in business, and even the industry your business occupies.
What’s the average term for a small business loan?
Small business loan terms depend on the type of lender and the kind of loan. Traditional loan terms can range from 3 to 10 years and SBA loan terms can range from 5 to 25 years, depending on the type of SBA loan. Business line of credit terms can range from 6 months to 5 years. Equipment loan terms typically are no longer than 10 years.
Can you get a small business loan with bad credit?
It’s possible to get a small business loan with bad credit, though it could be challenging to qualify. You may have to provide collateral and be willing to take less favorable rates and terms. If your business has sufficient, stable revenue and has been operating for several years, your odds of approval may improve. Eligibility ultimately varies by lender, though online lenders and credit unions may be more willing to work with you.
Can I get a startup business loan?
Some lenders require one or even two years as the “minimum time in business” before considering an application, but not all. There are business loans for startups, especially if you have a strong credit profile and can produce a well-developed business plan. Traditional business loans may be harder to qualify for if you are in the launch stage, but some online lenders may offer capital to owners who have less than one year of business.
Can I obtain financing for my business besides a loan?
Yes. Besides traditional business loans from a bank or lending institution, you can consider other types of small business financing or options outside of the banking sector. Business lines of credit, SBA loans, invoice factoring, merchant cash advances, and business credit cards are all other financing options to consider that may be available from traditional banks or credit unions.
Otherwise you can consider alternative sources such as equity financing, small business grants, crowdfunding, venture capital, angel investing, or even borrowing from friends and family.
See all FAQs
{/* horizon */}
{/* Fast and easy. Search for equipment financing in minutes. */}
Search for small business funding in minutes.
Your time matters. So we’re making business loans as easy as possible by helping you find small business funding fast.
Search for financing
(without impacting your credit score)†
Jan
06
2024
How Did the US Market Close Last Year?
December was a euphoric month for the market, between a rally across asset classes and talk of potential rate cuts in 2024.
Read moreJan
05
2024
4 Financial Risks For 2024
Achieving a “soft landing” is about the delicate balance between managing inflation and ensuring economic growth.
Read more
Stay up to date on the latest business news and stock market happenings.