Best Personal Loans For Business

LendingPoint: Best Loans For Fair Credit

LendingPoint

Get Started With LendingPoint

Total Rating	4.2
Rates & Fees4.6
Services3.0
Eligibility Requirements4.7
Application4.8
Sales & Advertising Transparency4.2
Customer Service3.7
User Reviews4.2

Pros

Borrower qualifications are lower than banks’
Short application process
Few extra fees

Cons

Not available in all states
Potentially high origination fee

Why We Chose LendingPoint For Fair Credit

We chose LendingPoint because it looks beyond credit scores. According to the lender, it uses technology and data to get a picture of "true creditworthiness." Though LendingPoint isn't very transparent about minimum credit score requirements, research around the web shows that lenders with fair credit scores of around 620 could be approved for funding.

We also like that LendingPoint has a fast and easy application process. You can access up to $36,500 with repayment terms of up to six years.

LendingPoint Services

LendingPoint offers installment loans between $2,000 and $36,500, with terms lengths from two to six years.

LendingPoint Rates & Fees

LendingPoint’s APRs range between 7.99% and 35.99%.

Depending on the state you live in, origination fees up to 10% may apply.

LendingPoint Eligibility Requirements

To qualify for a LendingPoint personal loan, you must meet these minimum requirements:

Be a U.S. resident that’s at least 18 years old
Minimum annual income of $35,000
Have a social security number and photo I.D.
Have a verifiable personal bank account

LendingPoint loans are not available in West Virginia or Nevada.

Choose LendingPoint If...

You want a long-term personal loan up to six years
You have a fair credit score

Discover Personal Loans: Best Loans With Long Repayment Terms

Discover Personal Loans

Get Started With Discover Personal Loans

Total Rating	4.4
Rates & Fees5.0
Services3.6
Eligibility Requirements4.5
Application4.5
Sales & Advertising Transparency5.0
Customer Service3.8
User Reviews3.6

Pros

No prepayment penalties
No extra fees
Low rates

Cons

High credit score requirements
Can’t apply with a co-borrower

Why We Chose Discover For Best Long Repayment Terms

Although most known for its credit card network, Discover also offers personal loans with maximum borrowing limits of up to $40,000. What we like most about Discover is that it offers long repayment terms of up to seven years.

That's not all we like, though, as Discover also has low, competitive interest rates, an easy application process, and fast disbursements -- as quickly as the next business day following loan approval.

Discover Personal Loans Services

Discover offers installment loans in amounts between $2,500 and $40,000, with terms lengths between three and seven years.

Discover Personal Loans Rates & Fees

Discover has APRs that range from 7.99% and 24.99%.

There are no additional fees other than late payment fees.

Discover Personal Loans Eligibility Requirements

To qualify for a personal loan from Discover, you must meet these minimum borrowing requirements:

Be at least 18 years old
Have a valid SSN
Minimum individual or household income of $25,000
Have a physical address
Have an active email address to complete the loan process

Additionally, Discover considers your credit history. You must have a credit score of at least 660 to qualify.

Choose Discover Personal Loans If...

You want longer repayment terms of up to seven years
You have good to excellent credit and want a personal loan with competitive rates

Upstart: Best Loans For Borrowers With No Credit History

Upstart

Total Rating	4.0
Rates & Fees3.8
Services3.4
Eligibility Requirements4.7
Application4.8
Sales & Advertising Transparency4.1
Customer Service3.9
User Reviews4.1

Pros

Borrower qualifications are lower than banks
No prepayment penalties
Funds are disbursed quickly

Cons

Not available in every state.
Doesn’t allow co-borrowers

Why We Chose Upstart As Best For Borrowers With No Credit History

We like that Upstart’s underwriting process is flexible, taking credit scores into account when they’re available (you’ll still want to clear 580 if you have a score), as well as education, credentials, and work experience. This makes Upstart a viable way to get around the Catch-22 of needing to have a credit history to get credit, especially for young entrepreneurs.

Upstart also offers instant approvals, as well as fast funding in 24 hours or less following approval (in some cases). Upstart also offers loans up to $50,000, which exceeds the maximum borrowing amount of many of the other lenders on this list.

Upstart Services

Upstart offers installment loans between $1,000 and $50,000, with three- or five-year repayment terms.

Upstart Rates & Fees

Upstart’s APRs range between 7.8% and 35.99%. There are no prepayment penalties or hidden fees. An origination fee may apply.

Upstart Eligibility Requirements

To qualify for an Upstart personal loan, you must meet these requirements:

Be at least 18 years old with a verifiable name, date of birth, and social security number
Have a valid email address
Minimum annual income of $12,000
Have a personal bank account
Have one of the following: a full-time job, an offer for a full-time job that starts within 6 months, a part-time job, or other source of income

Additionally, your credit profile will be considered. According to Upstart, its lending partners have different minimum requirements. However, even borrowers with less-than-perfect or insufficient credit history may qualify for a personal loan.

Choose Upstart If...

You have credit challenges or no credit but do have educational and/or work experience
You want a loan with instant approval
You want to borrow up to $50K

Get Started With Upstart

Avant: Best Loans For Bad Credit

Avant	Visit Site

Pros

Fast application process
Builds credit
Funds are disbursed quickly

Cons

Some additional fees
Doesn’t allow co-borrowers

Why We Chose Avant For Best Bad-Credit Personal Loans

We like that Avant has low credit score requirements, allowing even borrowers with credit challenges to receive up to $35,000. Avant has competitive interest rates, although borrowers with lower credit scores will receive higher rates.

Other things we like about Avant are its convenient mobile app, instant credit decisions, and next-day funding.

Avant Services

Avant offers installment loans between $2,000 and $35,000, with two- to five-year repayment terms. Minimum loan amounts may vary by state.

Avant Rates & Fees

Avant’s APRs range between 9.95% and 35.99%, with the average APR for a five-year loan at 26.48%.

Avant charges a one-time administration fee of up to 9.99%.

Avant Eligibility Requirements

To qualify for an Avant personal loan, you must be a U.S. resident at least 18 years old with a verifiable name, date of birth, and social security number.

While Avant doesn’t list specific credit score requirements, the lender does note that most Avant borrowers have credit scores that range from 600 to 700.

Choose Avant If...

You have a lower credit score and can’t qualify for a personal loan elsewhere
You want a loan that has instant approval and next-day funding

Get Started With Avant

LendingClub Personal Loans: Best Loans For Building Credit

LendingClub Personal Loans

Get Started With LendingClub Personal Loans

Total Rating	4.0
Rates & Fees4.6
Services2.2
Eligibility Requirements5.0
Application4.5
Sales & Advertising Transparency3.4
Customer Service3.7
User Reviews4.2

Pros

Allows co-borrowers
Builds personal credit

Cons

Rates may be expensive

Why We Chose LendingClub Loans As Best For Building Credit

While LendingClub does offer business loans, it primarily deals in personal loans -- and these personal loans can be used for business purposes. We like that LendingClub doesn't use the typical borrower qualifications you'd find with bank lenders or even some of its alternative lending competitors.

LendingClub gives borrowers ample time to repay and build their credit in the process (LendingClub reports positive as well as negative repayment behavior). We also like that LendingClub offers joint loans, allowing you to add a cosigner to increase your odds of approval and score a lower rate/higher borrowing amount.

LendingClub Services

LendingClub offers installment loans between $1,000 and $40,000, with repayment terms of two to five years.

LendingClub Rates & Fees

LendingClub’s APRs range between 8.98% and 35.99%.

An origination fee of 3% to 8% applies.

LendingClub Eligiblity Requirements

To receive a LendingClub loan, you must be a U.S. citizen or resident who is 18 years of age or older.

Although factors like your ability to repay, credit history, and credit score are considered when approving your loan, no minimum credit score is required to apply.

Choose LendingClub If...

You want to build your personal credit score
You want to use a cosigner to qualify for a personal loan

Prosper: Best For Joint Loans

Prosper

Total Rating	4.1
Rates & Fees4.6
Services3.0
Eligibility Requirements4.8
Application4.3
Sales & Advertising Transparency4.4
Customer Service3.6
User Reviews4.4

Pros

Allows co-borrowers
No prepayment penalties
High borrowing limits

Cons

Rates can be expensive

Why We Chose Prosper For Best Joint Loans

Unlike most of the lenders on this list (except LendingClub), Prosper allows joint applications. If your credit isn't up to par, you can add a co-borrower to increase your chances of receiving a loan, getting lower rates, and qualifying for a higher borrowing amount.

Speaking of borrowing amounts, Prosper has one of the higher maximum borrowing limits on this list, allowing qualified borrowers to receive up to $50,000. Add in competitive rates, no hidden fees, and next-day funding and it's easy to see why Prosper is a popular choice for personal loans.

Prosper Services

Prosper offers installment loans from $2,000 to $50,000 with repayment terms of two to five years.

Prosper Rates & Fees

Prosper’s APRs range from 8.99% to 35.99%. Origination fees range from 1% to 7.99%.

Prosper Eligibility Requirements

To receive a Prosper loan, you must be at least 18 years old.

While Prosper does check your credit score and history, there are no set minimum requirements. With that said, the lender does note that borrowers with scores below 600 are unlikely to qualify.

If your credit score is low, you can add a co-borrower to potentially qualify for a personal loan.

Use Prosper If...

You want to apply for a loan with a co-borrower
You want a fast and easy loan that can be funded as quickly as the next business day

Get Started With Prosper

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%

Services 20%

Eligibility Requirements 20%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

When Should I Use A Personal Loan For My Business?

Why should you choose a personal loan for business over a traditional small business loan? Here are some reasons why a personal loan may be the better fit.

You Don’t Qualify For A Business Loan

Business loan requirements can be difficult to meet, especially if you’re a new business owner. Your personal and business credit history, time in business, annual revenue, and other factors are considered for approval — which can be a challenge for some businesses.

A personal loan for business purposes can help resolve these problems. Your personal credit score, income, debt-to-income ratio (DTI), and other personal factors will determine your approval and maximum borrowing amount. Your time in business, business credit score, and business revenues will not be a consideration for loan approval.

You Can Get Better Financing Options

If you have a high credit score, a solid credit history, and verifiable income, applying for a personal loan for business may be a smart financial move. Going this route means you can receive a higher loan amount, lower interest rates, and more financing options than you might with a business loan.

You’re Starting Your Business

Most business lenders want to see that your business has been around for a while (usually six months, minimum) before they extend you a business loan. While personal loans aren’t the only startup business loans, they are among the most accessible.

What You Need To Qualify For A Personal Loan

Requirements for a personal loan vary somewhat depending on the lender. However, for most personal loans, there are a few general requirements. These include:

Age: Borrowers must be at least 18 years old to sign a loan contract.
Citizenship: Borrowers must typically be citizens or permanent residents of the U.S. to apply for a personal loan.
Credit Score: A credit score of at least 600 is required to qualify for most personal loans. Lower credit scores typically mean higher rates, lower borrowing limits, and shorter repayment terms. If you have a low credit score, you may also want to consider comparing business loans for bad credit.
Credit History: In addition to your credit score, lenders will also review your personal credit history. Some lenders will reject your loan application if you have recent bankruptcies, collections, or other negative items on your credit report.
Income: You must be able to verify that you have steady income to repay your loan through a full-time job, part-time job, or self-employment.
DTI: The debt-to-income ratio is used to show the relationship between your debt and your income. This gauges how much of a risk you are and whether you can afford the loan. A good DTI is 36% or less, although some lenders will approve loans for borrowers with a higher DTI.

Which Personal Loan For Business Is Right For You?

If getting a business loan has been a challenge, a personal loan for business expenses can be a smart solution. As with any type of loan, make sure to shop your options and understand the total cost of your loan. Apply for a loan you can afford, make your loan payment as agreed, and be financially responsible when launching, building, or expanding your business.

Ready to get started? Learn how to get a personal loan for your small business. If you think a business loan is a better fit, check out our guide on how to get a small business loan. Then compare your loan options starting with our picks for best loans for small businesses.

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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.

View Erica Seppala's professional experience on LinkedIn.

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1. Rocket Loans

❮ ❯

Installment loans
FICO: 640+
APR: 9.116% - 29.99%

2. LendingPoint

❮ ❯

Installment loans
FICO: Undisclosed
APR: 7.99% - 35.99%

3. Discover Personal Loans

❮ ❯

Installment loans
FICO: 660+
APR: 7.99% - 24.99%

4. Upstart

❮ ❯

Installment loans
FICO: Undisclosed
APR: 7.8% - 35.99%

5. Avant

❮ ❯

Installment loans
FICO: 580+
APR: 9.95% - 35.99%

6. LendingClub Personal Loans

❮ ❯

Installment loans
FICO: Undisclosed
APR: 8.98% - 35.99%

7. Prosper

❮ ❯

Installment loans
FICO: 600+
APR: 8.99% - 35.99%