The Best Business Term Loan for Any Small Businesses in 2023

Ready to apply for a loan? Lendio works with 75+ lenders to find the right option for your business. Click “Apply Now” to fill out our simple application.

How much money do you need?

Home Best Small Business Loans Best Term Loan in 2023

Best Business Term Loan

Lendio carefully selects the lenders it works with in its marketplace, then works with you to find the best term loan for your unique situation. Read on for stats on each lender and what each lender is best at.

Learn about our methodology for lender selection here.

Lender/Funder*Best Loan/Financing TypeLoan/FInancing AmountMin. Time in BusinessLoan/Financing TermMin. Credit ScoreTime to Funds
(After Approval)
Funding CircleTerm Loan$25,000-$750,0002 years6 months-7 years660As fast as 3 days
Bankers Healthcare Group (BHG)Term Loan$25,000-$500,0002 years12 years700As fast as 3 days
Avana Capital (Lend Thrive)Term Loan$25,000-$150,0002 years5 years675As fast as 24 hours
Camino FinancialTerm Loan$5,000-$150,00018 months2 to 5 years620As fast as 2 days
DreamspringTerm Loan$35,000-$250,000Any2-6 years600As fast as 1 day
FundationTerm Loan$15,000-$250,0001-3 years1-4 years6801-3 days
Lighter CapitalTerm LoanUp to $4 million12 monthsUp to 3 yearsNoneAs fast as a few days
SalaryoTerm Loan$5,000-$500,0002 years6 months – 3 years680Same-day funding

The Best Business Term Loan Options – All In One Marketplace

Continue reading for detailed information about the lenders listed above.
Ready to apply for a loan? Lendio works with 75+ lenders to find the right option for your business. Click “Apply Now” to fill out our simple application.

Best for Business Term Loan

Funding Circle – Term Loan

APR range

11.29%-30.12%*

Funding amount

$25,000-$500,000

Term

6 months-7 years

Min. credit score

660

Time to funding

As fast as 3 days after approval

For a term loan, consider applying with Funding Circle. The lender offers large loan amounts up to $500,000. However, their required 660 minimum credit score makes it more difficult to qualify for than some other online lenders might be.

Pros

  • Best alternative option to SBA
  • Fixed monthly payments
  • Savings on interest for early repayment (w/ no early repayment fees)
  • Large loan amounts available

Cons 

  • Longer time in business requirement than with other loan products
  • Longer possible time to receive funds than other lenders might take
  • 4.49%-8.49% origination fee 
  • 5% late payment fee
Funding Circle

Funding Circle – Term Loan

Read Our Review Apply Now

APR range

11.29%-30.12%*

Funding amount

$25,000-$500,000

Term

6 months-7 years

Min. credit score

660

Time to funding

As fast as 3 days after approval

For a term loan, consider applying with Funding Circle. The lender offers large loan amounts up to $500,000. However, their required 660 minimum credit score makes it more difficult to qualify for than some other online lenders might be.

Pros

  • Best alternative option to SBA
  • Fixed monthly payments
  • Savings on interest for early repayment (w/ no early repayment fees)
  • Large loan amounts available

Cons 

  • Longer time in business requirement than with other loan products
  • Longer possible time to receive funds than other lenders might take

  • 4.49%-8.49% origination fee 
  • 5% late payment fee

Bankers Healthcare Group (BHG) – Term Loan

Rates

Start at 8.49%*

Funding amount

Up to $500,000

Term

Up to 12 years

Min. credit score

700

Time to funding

Approval in as fast as 24 hours, funding in as little as 3 days

If you’re looking for a much longer-term loan, Bankers Healthcare Group (BHG) can offer businesses loans with up to 12-year terms at rates that begin at 7.99%. The credit score requirement is 700.

Pros

  • Best term loan for healthcare businesses
  • Long loan repayment terms
  • Strong customer service
  • Transparent fees
  • Variety of loan options

Cons

  • Possible prepayment penalty, depending on the loan 
  • Longer time in business requirement than with other loan products

3% origination fee

Bankers Healthcare Group (BHG) – Term Loan

Read Our Review Apply Now

Rates

Start at 8.49%*

Funding amount

Up to $500,000

Term

Up to 12 years

Min. credit score

700

Time to funding

Approval in as fast as 24 hours, funding in as little as 3 days

If you’re looking for a much longer-term loan, Bankers Healthcare Group (BHG) can offer businesses loans with up to 12-year terms at rates that begin at 7.99%. The credit score requirement is 700.

Pros

  • Best term loan for healthcare businesses
  • Long loan repayment terms
  • Strong customer service
  • Transparent fees
  • Variety of loan options

Cons

  • Possible prepayment penalty, depending on the loan 
  • Longer time in business requirement than with other loan products

3% origination fee

Avana Capital (Lend Thrive) – Term Loan

Interest Rate

Starting at 24%*

Funding amount

$25,000-$150,000

Term

5 years

Min. credit score

675

Time to funding

Approval and funding as fast as 24 hours

Avana Capital is the parent company of Lend Thrive. Since 2002, its goal has been to “enable entrepreneurs to overcome financing challenges in order to achieve growth and success.” Their loans come with, fixed rates and no hidden fees.

Pros

  • Best for underserved borrowers
  • 24-hour approvals and funding
  • No prepayment penalty
  • Loans able to be used for a variety of expenses

Cons

  • Longer time in business requirement than with other loan products
  • Hard credit inquiry that can impact your credit temporarily

4% origination fee

lend thrive

Avana Capital (Lend Thrive) – Term Loan

Apply Now

Interest Rate

Starting at 24%*

Funding amount

$25,000-$150,000

Term

5 years

Min. credit score

675

Time to funding

Approval and funding as fast as 24 hours

Avana Capital is the parent company of Lend Thrive. Since 2002, its goal has been to “enable entrepreneurs to overcome financing challenges in order to achieve growth and success.” Their loans come with, fixed rates and no hidden fees.

Pros

  • Best for underserved borrowers
  • 24-hour approvals and funding
  • No prepayment penalty
  • Loans able to be used for a variety of expenses

Cons

  • Longer time in business requirement than with other loan products
  • Hard credit inquiry that can impact your credit temporarily

4% origination fee

Camino Financial – Term Loan

Monthly Interest Rate

1-2.5%*

Funding amount

$5,000-$150,000

Term

2-5 years

Min. credit score

620

Time to funding

As fast as 2 days after approval

Camino Financial was founded in 2014 by two brothers who were on a mission to help underserved businesses. To date, it has provided over $183 million in funding to more than 9,500 small businesses. You can get pre-approved within 48 hours and get matched to the ideal small business financing solution for your unique business. Upon approval, you may receive the funds in a few business days.

Pros

  • Best for lower credit borrowers
  • Fast online pre-approvals
  • Customized small business financing solutions 
  • Flexible rates
  • Soft credit pull that won’t impact your credit
  • Can build and improve your credit score (reports to Experian Business Credit) 

Cons

  • Longer time in business requirement than with other loan products
  • Slower speed to funding than with some other lenders

6.99% origination fee

Camino Financial – Term Loan

Apply Now

Monthly Interest Rate

1-2.5%*

Funding amount

$5,000-$150,000

Term

2-5 years

Min. credit score

620

Time to funding

As fast as 2 days after approval

Camino Financial was founded in 2014 by two brothers who were on a mission to help underserved businesses. To date, it has provided over $183 million in funding to more than 9,500 small businesses. You can get pre-approved within 48 hours and get matched to the ideal small business financing solution for your unique business. Upon approval, you may receive the funds in a few business days.

Pros

  • Best for lower credit borrowers
  • Fast online pre-approvals
  • Customized small business financing solutions 
  • Flexible rates
  • Soft credit pull that won’t impact your credit
  • Can build and improve your credit score (reports to Experian Business Credit) 

Cons

  • Longer time in business requirement than with other loan products
  • Slower speed to funding than with some other lenders

6.99% origination fee

Dreamspring – Term Loan

APR range

12.1%-36%*

Funding amount

$35,000- $250,000

Term

2-6 years

Min. credit score

600

Time to funding

As fast as 1 day after approval

Dreamspring is a non-profit organization that offers financing to “help entrepreneurs realize their dreams.” It’s considered to be a microlender and has distributed over 42,000 loans with a minimum 600 credit requirement and fixed rates. Funds from Dreamspring loans can be used for inventory, equipment, working capital, and more.

Pros

  • Best for startups
  • No prepayment penalties 
  • Lengthy terms available

Cons 

  • Minimum monthly revenue requirement of $24,000
  • Hard credit inquiry that can impact your credit temporarily
  • Funds not to be used to pay past-due bills, tax bills, or personal expenses

5%-10% community benefit fee

Dreamspring – Term Loan

Apply Now

APR range

12.1%-36%*

Funding amount

$35,000- $250,000

Term

2-6 years

Min. credit score

600

Time to funding

As fast as 1 day after approval

Dreamspring is a non-profit organization that offers financing to “help entrepreneurs realize their dreams.” It’s considered to be a microlender and has distributed over 42,000 loans with a minimum 600 credit requirement and fixed rates. Funds from Dreamspring loans can be used for inventory, equipment, working capital, and more.

Pros

  • Best for startups
  • No prepayment penalties 
  • Lengthy terms available

Cons 

  • Minimum monthly revenue requirement of $24,000
  • Hard credit inquiry that can impact your credit temporarily
  • Funds not to be used to pay past-due bills, tax bills, or personal expenses

5%-10% community benefit fee

Fundation – Term Loan

Interest Rate

8.99%- 24.99%*

Funding amount

$15,000-$250,000

Term

12-48 months

Min. credit score

680

Time to funding

1-3 business days

Fundation is based in Virginia and offers medium-term loans that can be used for a variety of purposes, like working capital, equipment, and renovations. Since Fundation doesn’t charge prepayment penalties, you can pay off your loan early and save on interest. 

Pros

  • Best for medium-term loans
  • Soft pull on your credit that won’t impact your personal credit
  • Can build and improve your credit score (reports to business credit agencies) 
  • No prepayment penalties 

Cons 

  • Time in business requirements start at one year
  • Not available to nonprofits

1.5% origination fee

Fundation

Fundation – Term Loan

Apply Now

Interest Rate

8.99%- 24.99%*

Funding amount

$15,000-$250,000

Term

12-48 months

Min. credit score

680

Time to funding

1-3 business days

Fundation is based in Virginia and offers medium-term loans that can be used for a variety of purposes, like working capital, equipment, and renovations. Since Fundation doesn’t charge prepayment penalties, you can pay off your loan early and save on interest. 

Pros

  • Best for medium-term loans
  • Soft pull on your credit that won’t impact your personal credit
  • Can build and improve your credit score (reports to business credit agencies) 
  • No prepayment penalties 

Cons 

  • Time in business requirements start at one year
  • Not available to nonprofits

1.5% origination fee

Lighter Capital – Term Loan

APR range

Varies

Funding amount

Up to $4 million

Term

Up to 3 years

Min. credit score

None

Time to funding

As fast as a few days

Lighter Capital specializes in term-based financing for entrepreneurs and small business owners within SaaS and Technology. You can get approved for up to $4 million, with terms of up to three years. As a Lighter borrower, you’ll also get an invitation to the Lighter CEO Community, access to discount codes, and other perks.

Pros

  • Best for tech companies
  • No business plans or pitch decks required 
  • Soft pull on your credit that won’t impact your personal credit
  • Early buyout options that can save you money

Cons 

  • Limited to technology companies
  • Must be in business for at least 12 months
  • 4% referral and packaging fee
  • Approximately $450 in bank closing costs
  • Loans from $30k to $150k require a 1.7% guarantee fee
  • Loans above $150k require a 2.25% SBA guarantee fee

1% origination fee

Lighter Capital – Term Loan

Apply Now

APR range

Varies

Funding amount

Up to $4 million

Term

Up to 3 years

Min. credit score

None

Time to funding

As fast as a few days

Lighter Capital specializes in term-based financing for entrepreneurs and small business owners within SaaS and Technology. You can get approved for up to $4 million, with terms of up to three years. As a Lighter borrower, you’ll also get an invitation to the Lighter CEO Community, access to discount codes, and other perks.

Pros

  • Best for tech companies
  • No business plans or pitch decks required 
  • Soft pull on your credit that won’t impact your personal credit
  • Early buyout options that can save you money

Cons 

  • Limited to technology companies
  • Must be in business for at least 12 months

  • 4% referral and packaging fee
  • Approximately $450 in bank closing costs
  • Loans from $30k to $150k require a 1.7% guarantee fee
  • Loans above $150k require a 2.25% SBA guarantee fee

1% origination fee

Salaryo – Term Loan

APR range

Starts at 16%*

Funding amount

$5,000- $500,000

Term

6 months -3 years

Min. credit score

680

Time to funding

Same-day funding

Salaryo is a fintech lender headquartered in New York City. Since 2017, Salaryo has been providing flexible and affordable financing from as little as $5,000 and up to $500,000 to small businesses nationwide. Salaryo specializes in business term loans, featuring same-day funding, monthly installments, grace periods and deferred payment options on-demand.

Pros

  • Flexible payment options
  • Same-day funding available

Cons 

  • Not available in California or Nevada
  • Will need to connect to your business bank account via Plaid

1%-4% origination fee

Salaryo – Term Loan

Read Our Review Apply Now

APR range

Starts at 16%*

Funding amount

$5,000- $500,000

Term

6 months -3 years

Min. credit score

680

Time to funding

Same-day funding

Salaryo is a fintech lender headquartered in New York City. Since 2017, Salaryo has been providing flexible and affordable financing from as little as $5,000 and up to $500,000 to small businesses nationwide. Salaryo specializes in business term loans, featuring same-day funding, monthly installments, grace periods and deferred payment options on-demand.

Pros

  • Flexible payment options
  • Same-day funding available

Cons 

  • Not available in California or Nevada
  • Will need to connect to your business bank account via Plaid

1%-4% origination fee

Lendio’s methodology

Wondering how we chose the best? We used the following criteria to evaluate the lenders in our network.

  • Lenders with fast funding time (i.e., those with non-SBA loans that fund in under one week and SBA funding that funds in 2-3 weeks)
  • Lenders with a maximum loan amount of $2 million or less
  • Lenders with a minimum loan amount of $5,000
  • Lenders with fees that are comparable to other similar lenders (Ex:online lenders that have similar fees and traditional lenders with similar fees)
  • Requirements:
    • More flexible lenders:
      • Credit Score: 600
      • Time in Business: 6 months
      • $8,000-$10,000 gross monthly revenue
    • Average lender:
      • Credit Score: 700
      • Time in Business: 1-2 years
      • $20,000-$50,000 gross monthly revenue
  • Flexible repayment options (i.e., early repayment options with daily, weekly, and monthly payment options)
  • Reviews on external websites (an average of 4.5 or higher on TrustPilot)

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (November 28, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.

Compare loan options from multiple funders.

Applying is free and won’t impact your credit.
Talk to a rep at (855) 853-6346
Mon-Fri 7:30am-5pm MST