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Our Top Picks for 2025

Reviewed and updated March 2025 by the Cheddar Capital editorial team

CapitalBridge

✓ Best for Established Businesses
18–65%APR range
$25K–$500KLoan amount
1–2 daysFunding time
640+Min. credit score
Competitive rates Higher loan limits Dedicated advisor
⭐⭐⭐⭐½
4.5 / 5
Check Rate → Learn more

GrowthLine

✓ Best Line of Credit
15–45%APR range
$6K–$200KCredit limit
Instant drawsFunding time
625+Min. credit score
Revolving credit Pay only what you use 24/7 withdrawals
⭐⭐⭐⭐½
4.4 / 5
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FederalPath

✓ Best for Low Rates (SBA-style)
9–12%APR range
Up to $5MLoan amount
2–10 daysFunding time
650+Min. credit score
Lowest rates Long repayment terms Large loan amounts
⭐⭐⭐⭐
4.2 / 5
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StartupBoost

✓ Best for New & Growing Businesses
24–79%APR range
$2K–$250KLoan amount
24 hoursFunding time
580+Min. credit score
3 months in business OK Low credit OK Fast decisions
⭐⭐⭐⭐
4.0 / 5
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Why Business Owners Use Cheddar Capital

We built this platform because searching for a business loan used to mean calling five different banks and getting five different runarounds. We fixed that.

🔍 Unbiased Comparisons

We rank lenders based on real criteria — rates, speed, transparency, and customer experience. Not whoever pays us the most.

⚡ Fast Results

Answer a few questions and see your best matches in under a minute. No lengthy forms, no lengthy waits.

🔒 No Hard Pulls

Checking your options through Cheddar Capital won't affect your credit score. Browse freely, decide confidently.

📋 All Loan Types Covered

Working capital, term loans, lines of credit, equipment financing, bad-credit options — we cover the full spectrum.

🧀 Straight Talk

We explain the APRs, the fees, the fine print — in plain English. No industry jargon designed to confuse you.

💼 Built for Small Business

Whether you run a food truck or a 50-person firm, our comparisons are calibrated for the real needs of small business owners.

How to Choose the Right Business Loan

Not all business loans are created equal — and the right one depends heavily on your situation. Here's a practical framework for figuring out what actually fits.

Step 1: Know Why You Need the Money

Your purpose shapes your product. If you need to cover payroll while waiting on invoices, a short-term working capital loan or line of credit makes more sense than a five-year term loan. If you're buying equipment, an equipment loan lets the asset serve as collateral and typically comes with better rates. If you're expanding a location, a longer-term loan with fixed monthly payments gives you predictability.

Step 2: Understand Your Creditworthiness

Lenders look at several factors beyond just your personal credit score: business revenue, time in operation, cash flow consistency, and existing debt. A 650 personal credit score combined with $400,000 in annual revenue and two years in business will unlock far better options than a 720 score with six months of history. Know your full picture before you apply.

Step 3: Compare Total Cost, Not Just APR

APR is important, but it's not the whole story. Some lenders charge origination fees of 2–5% that aren't always reflected in the headline rate. Others have prepayment penalties that punish you for paying off early. Factor in the full cost of borrowing — including fees, term length, and repayment structure — before making a final call.

Step 4: Match Speed to Your Timeline

If you need funds this week, a traditional bank loan probably isn't your path — those typically take 2–8 weeks. Online lenders like QuickFund can fund same-day. That speed comes at a cost (higher APR), so only pay for it if you actually need it.

Types of Business Loans at a Glance

Term Loans

Lump sum repaid over a fixed schedule. Best for planned, one-time purchases. Rates range from ~9% to 99% depending on creditworthiness.

Working Capital Loans

Short-term financing for day-to-day operations — payroll, inventory, utilities. Usually faster to fund and easier to qualify for.

Business Line of Credit

Draw what you need, repay, draw again. Ideal for ongoing cash flow management. You only pay interest on what you use.

SBA-Style Loans

Government-backed programs offer the lowest rates (often 9–12%) and the longest terms. The tradeoff: more paperwork and longer approval times.

Equipment Financing

The equipment itself serves as collateral, which lowers the lender's risk and often your rate. Useful for vehicles, machinery, and tech.

Merchant Cash Advances

Repaid as a percentage of daily card sales. Flexible but expensive — effective APRs can exceed 100%. Use as a last resort.

Frequently Asked Questions

What credit score do I need for a business loan?
It depends on the lender and loan type. Some online lenders like StartupBoost will work with scores as low as 580. Traditional and SBA-style lenders typically want 650 or higher. In general, the better your score, the better your rate. That said, your revenue and time in business often carry as much weight as your credit score.
How fast can I get a business loan?
Online lenders can move extremely fast — QuickFund, for example, funds same-day for qualified applicants. Most online lenders take 24–72 hours. Bank loans and SBA loans typically take 2–8 weeks due to more extensive underwriting requirements.
Will applying affect my credit score?
Checking your options through Cheddar Capital does not affect your credit score — we use a soft inquiry to match you with lenders. A hard inquiry only happens if you formally apply directly with a lender, and most lenders will tell you this upfront before pulling your credit.
What's the difference between a business loan and a line of credit?
A business loan gives you a lump sum that you repay over a fixed term with scheduled payments. A line of credit is revolving — you draw what you need, repay it, and the credit becomes available again. Lines of credit are better for managing ongoing cash flow; loans are better for one-time investments.
Can I get a business loan with a brand new business?
Yes, though your options are more limited. Lenders like StartupBoost specifically work with businesses as young as 3 months old. You'll typically need to show some revenue and accept higher rates. If your business has no track record at all, consider a personal business loan or a microloan program through a nonprofit lender.
Is Cheddar Capital free to use?
Yes, completely. Cheddar Capital is a free comparison platform. We may earn a referral fee when you apply through a lender link, but this never affects our rankings or recommendations. Our editorial team evaluates lenders independently based on rates, terms, speed, and user experience.