The Lowest Business Loan Rates

Whenever anyone begins looking for financing the starting point is always the same; how to find the lowest rate. The quest is no different when it comes to locating business financing and finding a low rate may matter more, since business loan sizes tend to be larger than personal loan sizes putting more potential savings at stake. We have done the research for you and have located the lowest business loan financing options available.

Business Credit Cards

Business credit cards can carry high interest rates but there are many cards available that offer introductory promotions. If you are an established business, have good personal credit and only need a small amount of financing, then opening up a business credit card with a promotional offer may be the best choice for you. There are many cards available offering 0% APR introductory financing for a 12 month period, meaning you can borrow funds up to your maximum credit limit for 12 months without paying a dime in interest. There is no other financing option available that offers you access to capital for free. The catch is that you must pay your balance off before the introductory period, and after 12 months your APR will increase back up to the card’s usual interest rate. Also, if you are looking for greater than $15,000, are a newer business or don’t have great credit, a 0% APR promotion may not be available to you.

Business Credit Lines

After extensive research, we have located a lender that offers a business credit line with the lowest cost of borrowing available anywhere. Fundbox offers financing from $1,000 to $100,000 starting at a cost of only 0.4%. If you were approved for a credit line from Fundbox for $10,000, you would pay as little as $40 in fees on those funds. Even if you were approved for Fundbox’s top end rate of 0.9%, you would still only pay $90 which a small amount for borrowing $10,000. What’s the catch you say? Fundbox’s fees are charged on a weekly basis over 12 or 24 weeks, so funds are best borrowed for a short period of time. Even if you kept your balance for 12 weeks, you would only pay 4.8% to 10.8% in fees which is still remarkably inexpensive. Fundbox only charges fees on funds drawn down from your line, not your total approved credit line amount; so you only pay fees on the dollars you use. The company also has no prepay penalty and no other fees, so there is no hidden cost for paying off your line early or applying for a Fundbox credit line. Fundbox issues approvals in about 3 minutes (if eligible) and funds can be drawn upon the next business day, plus there is no credit score minimum and few industry restrictions.  

SBA Working Capital Loans

Small Business Administration or SBA loans are a great way to access larger amounts of business capital at below market rates. Because SBA loans are guaranteed by the US government, lenders are able to offer very favorable terms. SBA loans can involve more paperwork and take longer than other types of business loans which is why it’s important to work with a loan provider who has significant experience and utilizes technology to expedite the process. SmartBiz has provided over $1 billion in SBA loans, most of which have been small working capital loans between $25,000 and $350,000, and its been able to do it in record time because of its proprietary loan processing software. SBA working capital loans have low rates of only Prime + 2.75% to 3.75%, they are amortized over 10 years which keeps your payment low, and there is no prepay penalty so the loan can be paid off anytime without incurring extra fees.  

Alternative Business Loans

Although not the least expensive form of business financing, alternative business loans are a great option for business owners that need fast capital or who don’t qualify for more affordable financing. There are hundreds of alternative business lenders, so the trick is finding the least costly one to work with. OnDeck has been in business since 2007 and has provided over $10 billion of loans to small business owners. The company requires very minimal paperwork, has flexible credit score requirements, doesn’t require tax returns and can fund $5,000 to $500,000 in as little as one day. OnDeck’s interest rates start at 9% and it offers rate and fee discounts to repeat customers.


Finding the right lender to work with can be difficult and making sure you are getting the best rate available can also be frustrating. The lenders outlined above offer you the best chance at accessing affordable business capital quickly, and instill the confidence that you are partnering with a lender that will treat you fairly and help you grow your business.

Want to learn more about affordable business loans? Contact our 2019 Best Credit Line Lender Fundbox, our 2019 Best Business Term Loan Lender OnDeck, or our 2019 Best Business Working Capital Financing Provider SmartBiz.

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