Compare Small Business Loans With Low Rates

Find and compare the best small business loans with low interest rates. Discover flexible financing options to help grow your business without breaking the bank. 

For entrepreneurs and small business owners, access to affordable financing is a critical ingredient for success. Whether you're launching a new venture, expanding operations, or managing seasonal cash flow, finding the right small business loan with a low interest rate can make a significant difference. In 2025, the lending landscape continues to evolve, with both traditional institutions and online lenders offering a variety of funding options to suit different needs.

This guide breaks down the top small business loan providers, compares their features, and highlights what you need to know to secure low-cost financing.

What Is a Small Business Loan?

A small business loan is a form of funding designed to help businesses meet their operational, growth, or capital needs. Loans can come in various forms—such as lump-sum loans, lines of credit, equipment financing, and more—and they are available from banks, credit unions, government-backed institutions, and alternative lenders.

Interest rates, loan terms, and qualification criteria vary by lender, but your creditworthiness, time in business, annual revenue, and the purpose of the loan will all play key roles in determining your eligibility and the final cost.

Popular Types of Business Loans in 2025

  • Term Loans: Traditional bank loans with set repayment schedules and fixed or variable interest rates.
  • SBA Loans: Backed by the U.S. Small Business Administration, these offer lower rates and extended terms but may require more documentation.
  • Lines of Credit: Flexible borrowing with a credit limit you can draw from as needed.
  • Equipment Financing: Loans specifically for buying machinery or equipment, often with the item itself acting as collateral.
  • Invoice Factoring: Financing based on unpaid invoices, offering fast cash flow solutions.
  • Merchant Cash Advances: High-cost, short-term funding based on future card sales—often best avoided unless necessary.

Top Providers for Low-Rate Small Business Loans in 2025

Best Money
This platform provides an in-depth breakdown of loan types and helps users match with funding based on their business needs. It includes education on how each loan type works, from SBA loans to invoice factoring, and outlines the pros and cons of each option.

Key Benefits:

  • Explains the differences between secured and unsecured loans
  • Offers guidance on qualification criteria
  • Strong focus on financial literacy for borrowers

Best For: Business owners looking to learn and explore all loan types in one place.

Fund
This service connects borrowers with top-rated lenders who specialize in low-rate, high-quality small business loans. They emphasize custom service, quick approvals, and practical tips for improving loan eligibility.

Key Benefits:

  • Access to multiple loan types including SBA, bank, and equipment loans
  • Offers tips to boost personal credit and cash flow
  • Simplifies the comparison process

Best For: Business owners who want a streamlined, educational approach with access to multiple funding options.

Biz2Credit
Specializing in revenue-based financing, Biz2Credit offers fast, flexible loans that scale with your business's performance. It uses a proprietary platform to help match you with personalized loan amounts.

Key Benefits:

  • Revenue-based repayment structures
  • Fast applications and approvals
  • Transparent evaluation process

Best For: Businesses with variable income streams or seasonal revenues.

LendingTree
A well-known lending marketplace, LendingTree allows you to compare offers from over 300 lenders. It provides real-time, side-by-side comparisons and offers support features like credit monitoring.

Key Benefits:

  • Single form connects you to multiple lenders
  • Fast results and competitive rate matching
  • No obligation to accept offers

Best For: Business owners who want to shop around for the best rates with minimal effort.

NerdWallet (via Fundera)
Fundera by NerdWallet streamlines the application process by giving you access to a network of vetted lenders. Their platform helps identify the right product for your needs—whether it’s an SBA 7(a) loan or a short-term working capital loan.

Key Benefits:

  • Free to apply and compare
  • Soft credit inquiry doesn’t affect your score
  • Fast approvals with some loans funding in 1 day

Best For: Entrepreneurs seeking a data-backed, user-friendly approach to finding small business loans.

How to Compare Business Loan Offers

When evaluating loan offers, don’t just chase the lowest advertised interest rate. Here are the key comparison points:

  • APR (Annual Percentage Rate): This includes interest plus fees—your best indicator of the loan’s true cost.
  • Loan Term: Longer terms offer lower payments but increase total interest. Choose a term that balances affordability and cost.
  • Repayment Schedule: Understand if payments are weekly, bi-weekly, or monthly, and how that aligns with your cash flow.
  • Fees: Origination fees, late payment penalties, or early repayment charges can add up fast.
  • Speed: Some lenders fund in 24–48 hours, while others may take weeks.
  • Eligibility Requirements: Make sure you meet credit score, revenue, and time-in-business minimums.

Tips to Qualify for the Best Loan Rates

  • Build Your Credit: A strong personal and business credit score will unlock better rates.
  • Demonstrate Revenue Stability: Show consistent income and solid cash flow.
  • Prepare Documentation: Include business plans, tax returns, bank statements, and proof of collateral.
  • Avoid Overborrowing: Only borrow what you can repay on time to avoid penalties and future denials.
  • Explore SBA Options First: SBA loans often have the lowest rates and longest repayment terms, making them ideal if you qualify.

Small business loans are powerful tools for growth—but only if chosen wisely. With so many options in 2025, it’s easier than ever to compare offers, get prequalified, and secure financing that aligns with your business goals. Whether you need working capital, want to upgrade your equipment, or simply need cash to stay afloat during slow seasons, the right lender can be a true partner in your success.

Take the time to compare lenders, review your financials, and be strategic about your borrowing. Your future self—and your bottom line—will thank you.