Best LLC Loans 2023: Top 7 Picks & Reviews
At crucial junctures of an LLCs history, members must make bold decisions. This can be deciding to start up, to buy property, to invest in expensive equipment, or to find that first massive PO. All along the way, access to money is needed to make these key moments successful. Online LLC loan platforms provide access for many small businesses. In this article, we explain the types of small business loans that may be useful and review several of the top competitors. Use these reviews to help decide which funding option can help fuel your LLC’s next steps.
Top 7 Best LLC Loans 2023
- OnDeck: Best Overall
- BlueVine: Banking Solution
- TD Bank: Best SBA
- Lendio: Largest Lending Network
- Kabbage: Innovative Qualification
- National Funding: Best Equipment Loan
- Fundbox: Best Line of Credit Options
What Is an LLC Loan?
An LLC loan is a business loan used by an LLC which helps them finance everything — from startup expenses to purchasing equipment to other expenditures necessary to operate. LLC Loan Programs and Credit Unions are distinct from small-business Loan Programs and Credit Union Loan Programs generally.
Different Types Of LLC Business Loans
There are more than one kind of LLC business loan.
Online Term Loans
Access to capital has never been easier for small LLCs. Many online lenders are emerging and evolving to offer loans and lines of credit through online portals. The application process takes minutes and funding can be very fast.
Business Lines of Credit
A business line of credit is often the best value for a small business. This product works similarly to a credit card or home equity line of credit for consumers. The business can draw out the funds needed and only make payments on the amount utilized. Business owners find this offers the security of knowing they have funds available without the obligation of a long-term loan.
Bank Loans
LLC owners can also obtain a bank loan. There are a variety of bank loans offered to small business owners which provide working capital upfront with a fixed repayment plan. Each lender offers different financing terms for unsecured loans, loans backed by collateral, or loans that also require a personal guarantee.
SBA Loans
An SBA loan is offered to small business owners from the eponymous Small Business Administration. The SBA offers various loans for startup costs, real estate purchases, expansion, and working capital. LLC small business loans often have favorable terms since they are backed by the government.
Invoice Financing
Sometimes a business needs a short-term loan to fund the manufacture of products for sale. The business has signed contracts or purchase orders to fulfill and can borrow money against these accounts receivable. If the business can repay the loan quickly after the invoice is paid – they will pay interest for just a short period.
National Funding
- Equipment Financing
- Good rates
- Can qualify with a short time in business
Fundbox
- Superior customer service
- Insights and data forecasting services
- Can help fund your customers too
Top 7 Best LLC Loans March 2023
OnDeck
With flexible qualifications, fast funding, and a simple application – OnDeck is our Best Overall.
- Easy to use
- Fast funding
- Loan advisors
- Weekly repayment mandatory
- No low-interest products
OnDeck provides an intuitive and user-friendly application process that can be done in just minutes. The funding comes in equally fast. Their process is very current and appeals to anyone who wants instant decisions. They offer loans and lines of credit tailored to your business needs. Depending on the product you can guarantee the loan with a personal credit or a business lien. Customers are very satisfied with the service they receive, with many positive ratings across review aggregators. Rates are 29%-99% – so this is not a low-interest option. But it is the best choice if you have lower credit or a shorter time in business.
BlueVine
BlueVine is a lender, but also offers banking and accounting integrations. For moderate to larger-sized businesses, BlueVine is the Best Overall Banking Solution.
- Offers banking services
- Fast decision
- Good rates
- High revenue requirements
- Fast repayment period
BlueVine offers several excellent business services. Their primary feature is actually business bank accounts and business bank statements – but easily transition customers into their lending program. Credit lines up to $250,000 can be found for as low as a 6.2% interest rate. As part of the overall service, customers have access to subaccounts, unlimited transactions, and QuickBooks integrations. As a downside, businesses need 40 months open and $40,000 monthly revenue to qualify for the best products – so the barrier is steep for startups.
TD Bank
With the resources of a large bank, TD Bank offers competitive lending products that meet the needs of many business owners. We find their high volume and expertise working with Small Business Administration to be their best differentiator – they are the Best for SBA loans.
- Power of a large bank
- Top SBA lending
- Good rates
- They prefer in-person applications
- Slower decision time
TD Bank is a well-known consumer bank and lender, but we find their business side to be just as effective. They offer a variety of loans, with fairly easy qualification standards. Their 600 credit score requirement is among the lowest in the field. They are one of the nation’s largest SBA lenders and are perhaps the best bank for that type of loan. For some, they may seem too slow or old-fashioned – requiring in-person application at some locations. So they are not instant decision fast funders like some competitors. But well worth the wait if you want an SBA loan.
Lendio
Lendio is not a lender, but a loan hub and marketplace. They provide access to many funding sources, so you can usually find an option for your needs. This is their competitive feature – thus they are the Largest Lending Network
- Variety of products
- Access to many lenders
- Invoice funding
- They are not really the lender
- Rates are varied
With access to 75 lenders, most small businesses can find a product on Lendio. They offer standard small business loans, SBA loans, and lines of credit. Additionally, users can find financing for equipment, commercial mortgages, acquisition loans, or advances for invoices and POs. Lendio is a comprehensive option. But as a marketplace rather than the lender, details of all the products are not always apparent.
Kabbage
Kabbage was around for over a decade – and is one of the top names in online fast funding. However, they are in a time of transition now being acquired under the American Express Business BluePrint. They were among the first to use a complex algorithm that takes into account the industry, revenue, cash flow, credit, and even eCommerce data to make lending decisions instead of simply base criteria. We think they were a true innovator and we award them Innovative Qualification.
- Migrating into the American Express ecosystem
- Low revenue requirements
- Fast decision pioneer
- Time of transition
- All loans include a personal guarantee
Kabbage, now known as American Express Business BluePrint, provides loans and lines of credit. They require a 640 personal credit score, only 1 year in business, and only 3,000 monthly revenue. Thus, they are one of the better choices for newer and smaller businesses. As the new partnership is only 2 years old, it remains to be seen if American Express keeps up the Kabbage tradition of easy and fast business funding.
National Funding
National Funding provides flexible qualification criteria and good interest rates. They are a good choice for many products, but we find their loans for up to $150,000 of equipment to be the best deal. They win our nod for the Best Equipment Loans.
- Capital outlays for equipment
- No-collateral options
- Short business history
- Limited products
- Weekly repayment
There is a lot to like in National Funding’s offerings. They are an excellent option for businesses who are new – with only 6 months of business records required. They offer loans for expansion, payroll, and equipment through their fast application process. On the downside, they frequently ask for short repayment intervals – with weekly payments deducted – and the loan is personally guaranteed so your personal assets are at liability.
Fundbox
Fundbox offers many quality services. We like their LOCs, and award them the Best Line of Credit Options.
- Excellent customer service
- Provides insights and forecasting
- Innovative customer capital program
- Not the most favorable terms
- Personal guarantee required
Fundbox provides many services. In addition to loans, lines of credit, and equipment financing, they also allow customers to view insights and forecasting for their business. They have also expanded to a new program where you can help your customers acquire financing to buy your products. Though they have many great products, their terms are just a bit smaller in scale and less favorable than those you can acquire with good credit or high revenue. For example, their limit is $150,000 and the APR starts in the teens with weekly repayment and a personal guarantee.
How to Apply for an LLC Loan
Most of the competitors in today’s review have online portals where you simply enter simple information about the company and upload a few documents. For example, you will likely have to provide access to your business bank account and a P and L. The companies match your profile to available lending options.
Final Thoughts
Your business success often hinges on critical turning points. Perhaps it’s at startup when expanding when you need to add equipment or fill a massive PO. These steps often need funding and you just don’t have lots of time or ready access to investors. That’s where online funding platforms can help by providing LLC loans to help fuel your business. For today, we find that OnDeck, BlueVine, and TD Bank are the class of this competitive field. As our analysis shows though, there are many reputable companies worthy of consideration.
It varies. Business loans may use a personal credit score and guarantee, loan against collateral, or use business revenue as the deciding factor.
Yes. Companies such as LLCs are their own legal entity. When the business takes on loans, their credit is reported similar to a consumer credit score.
Yes. There are numerous online funding platforms including direct lenders and loan marketplaces. For any particular option, use professional reviews and customer ratings to judge satisfaction.
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