Best Term Loans for Small Business

The best term loan for your small business depends on three things: how long you've been operating, your credit score and how fast you need the money. Our recommended funder, Merchant Fund Express, fits owners with steady sales who need an answer in hours; OnDeck and National Funding serve established businesses with solid history; and an SBA 7(a) loan usually costs less if you qualify and can wait.

A term loan gives you one lump sum up front, which you repay in installments over a set period. It's the cleanest way to pay for something with a known price tag: a work van, a remodel, seasonal inventory or a second location. Below you'll find the ranked list, a comparison table and simple rules for choosing without regret.

How we picked these term loans

How we rank. We don't hand out made-up ratings or scores. We compare every option on the same criteria: decision speed, minimum time in business, minimum credit, whether it accepts an ITIN or owners without an SSN, required documents, loan amounts and collateral. We only include facts each company publishes on its own website (checked October 20, 2026). If we couldn't confirm a detail, we left it out. Read the full methodology in how we rank business funding options.

For term loans we put extra weight on three things: the real repayment term (12 months and 10 years are very different loans), payment frequency (daily, weekly or monthly) and minimum credit. If your customers pay in cash, Zelle or card, it also matters whether a funder reads your deposits and not just your score.

The best small business term loans, ranked

1. Merchant Fund Express (recommended funder). Reviews your sales and bank deposits, not just your credit. It considers profiles from FICO 500+, with amounts from $5,000 to $5,000,000 and decisions that often come back in 2 to 4 hours. In most cases no collateral is required, and applying is free with no impact to your credit. Stronger credit and cash flow usually bring better offers. Spanish-speaking support is available, and applicants with an ITIN are accepted (no SSN needed). Apply with Merchant Fund Express to see what you qualify for.

2. OnDeck. Its Term Loan runs from $5,000 to $400,000 with terms up to 24 months. Published minimums are 1 year in business, $100,000 in annual revenue, a business checking account and a 625 personal FICO. You can check eligibility without affecting your credit. OnDeck notes on its site that it doesn't lend to businesses in North Dakota.

3. National Funding. Advertises small business loans up to $500,000. Its working capital loan is repaid with daily or weekly payments over 4 to 24 months. It says most of its customers have a personal FICO of 600 or higher and that checking your options won't affect your score. In some states it offers only revenue-based financing.

4. Credibly. Its working capital loan runs from $25,000 to $600,000. It generally asks for 6+ months in business, deposits into a business bank account and a FICO of 550 or higher, though it says it reviews more than 130 factors beyond the score.

5. Bluevine. Best known for its line of credit, Bluevine also lists term loans of up to $500,000 offered through partners. For its line it asks for a corporation or LLC with 12+ months in business, $10,000 in monthly revenue and a 625+ FICO. It makes sense if you already bank with Bluevine and your profile is strong.

6. SBA 7(a) loan at a bank. The maximum is $5 million, and payments are usually monthly over longer terms. If you qualify, an SBA loan usually costs less than any online option. The price is time and paperwork. Heads up: since March 1, 2026, 100% of the owners of a business applying for a 7(a) or 504 loan must be U.S. citizens or U.S. nationals whose principal residence is in the U.S. (SBA Procedural Notice 5000-876626). Green card holders can no longer own any share.

Side-by-side comparison

The table doesn't list rates because each funder sets pricing after reviewing your file. Always compare the total cost and payment frequency of every offer in writing before you sign.

How to choose the right term loan

Before you pick from the list, answer these five questions. They'll save you weeks:

• What's the money for? If it pays for something that lasts years (a building, a big machine), look for the longest term you can get, like SBA or a bank. If it's seasonal inventory or a contract you'll collect on in 90 days, a short term makes more sense.
• How long have you been open? Under 1 year, OnDeck and Bluevine's line won't qualify you based on their published minimums. That's where deposit-based funders come in.
• How does your revenue come in? If you get paid every day, a daily or weekly payment feels lighter. If you invoice on net-30, monthly payments fit better.
• What's your real FICO? Pull it before you apply. At 625+ you have more doors. Between 500 and 600, you're better off with a funder that weighs sales and deposits.
• Who are the owners? If any partner isn't a U.S. citizen or national, SBA 7(a) is off the table. Don't burn time there; go straight to private options.

If you want to understand the product before comparing, read our complete guide to business term loans.

Documents and common mistakes

Paperwork almost every funder asks for:

• Business bank statements from the last 3 to 6 months.
• Photo ID and your SSN or ITIN, depending on the funder.
• Your EIN and company documents (LLC or corporation) if you have them.
• Tax returns, especially for larger amounts or SBA.
• For SBA: financial statements, a use-of-funds plan and sometimes a business plan.

Mistakes we see all the time:

• Applying in five places on the same day. Every hard inquiry sticks to your report. Start with the ones that use a soft pull.
• Looking only at the payment. A low payment stretched over a long term can cost more overall. Get the total cost in writing.
• Skipping the prepayment clause. OnDeck, for example, notes that if you pay early you may still owe part of the remaining interest, depending on your contract.
• Mixing personal and business accounts. Funders read your deposits. If sales land in your personal account, they're harder to prove.

Torn between a term loan and a line of credit? Compare them in business line of credit vs. loan.

The best term loan for your situation

• Best for fast decisions with credit from 500: our recommended funder (#1 on the list).
• Best for businesses with 1 year and a 625+ FICO: OnDeck.
• Best for daily or weekly payments on mid-size amounts: National Funding.
• Best for 6 months of history and credit from 550: Credibly.
• Lowest cost if you qualify and have time: SBA 7(a), as long as every owner is a U.S. citizen or national.

A practical rule: if your bank can give you an SBA or conventional loan on a timeline that works, start there, because it's usually cheaper. If the bank said no, or the opportunity won't wait, go with a funder that looks at your real sales and often answers the same day. To see how SBA stacks up against private options, read the best SBA loan alternatives. Prefer Spanish? Leer en español.