Our best business loans and business lines of credit ratings methodology

How we rate the best business loans and business lines of credit

We assessed 24 popular business lenders to find the best business loans and business lines of credit. In general, the best business loans and lines of credit provide a wide range of loan amounts and quick funding speeds. Some also offer perks like prepayment discounts. Additionally, several permit lower credit scores and have less strict minimum requirements for how long a business must be in operation and how much annual revenue it generates. 

We scored lenders from one to five stars according to these factors and other metrics covered below. These rankings, in turn, were used to rank the lenders in order, which determined the list of top business loans and business lines of credit. 

Get the funding you need for your business: Compare the top business loans 

Methodologies

• Business loans.
• Business lines of credit.

Business loans methodology

How we choose the products we ranked

We choose the products included in our rankings based on a variety of eligibility factors. This includes making sure each lender is legitimate and trustworthy based on customer service, reviews and more. Additionally, we look at whether a lender’s annual percentage rates (APRs) — or factor rates, depending on the lender — are reasonable according to common practices.

We also consider if any actions have been taken against a lender by the Consumer Financial Protection Bureau (CFPB) or other federal agencies. If so, a lender could be disqualified from our rankings depending on the severity of the violations and their impact on customers.

Best business loans ranking factors

We used the following factors (with weightings) to determine our private student loan rankings:

• Loan details: 30%.
• Loan cost: 20%.
• Eligibility and accessibility: 20%.
• Customer experience: 15%.
• Application process: 15%.

These factors were chosen based on what is typically most important to borrowers. For example, a borrower will likely consider elements like loan amounts, repayment terms and eligibility criteria (like minimum credit score, time in business and annual revenue requirements) to decide if a business loan is right for their situation.

Here’s how our factors break down, with weightings for each subfactor that comprises a category. We also included explanations for how lenders could receive the highest score in each particular area:

Loan details (30%)

• Minimum loan amount (10%): Depending on your business, you might only want to borrow a small amount. In accordance with this, we gave the highest points in this area to lenders that offer loan amounts under $10,000. 
• Maximum loan amount (10%): In other cases, a business could need a large amount of funding to cover expenses. Based on this, we awarded the highest points in this area to lenders that provide loans larger than $500,000. 
• Maximum repayment term (10%): Business loan terms tend to be shorter than those of other types of loans. To earn the highest points in this area, a lender must offer terms longer than two years.

Loan cost (20%)

• Minimum APR (5%): Depending on the lender, a business loan might come with a typical APR or a factor rate. We gave the highest amount of points in this area to lenders with minimum APRs below 7%. If a lender charged factor rates, we converted that into an interest rate — if it was below 7%, that lender received full points.
• Maximum APR (5%): We awarded the highest points in this area to lenders that cap their APRs below 23%. If a lender charged factor rates, we converted that into an interest rate — if it was below 23%, that lender received full points.
• Late fees and prepayment penalties (5%): We gave points in this area to lenders that don’t charge late fees or prepayment penalties.
• Perks/rate reductions (5%): We awarded points in this area to lenders that offer perks (such as rate reductions) to their customers.

Eligibility and accessibility (20%)

• Credit score (10%): Business lenders often consider your personal credit when reviewing an application. We awarded the highest points in this area to lenders that accept credit scores below 620.
• Time in operation (10%): Lenders want your business to be stable — as such, your business must be in operation for a minimum amount of time. We gave the highest points in this area to lenders that accept applications from businesses that have operated for one year or less. 

Customer experience (15%)

• Customer service hours and access options (5%): We awarded the maximum points in this area to lenders that are available seven days per week, provide service past 6 p.m. Eastern Time (ET) and offer multiple contact options.
• Mobile app (5%): We gave points in this area to lenders that provide a mobile app to their customers.
• Trustpilot reviews (5%): Customer reviews can help you decide if it’s a good idea to work with a lender. The highest points in this area were given to lenders that have earned five stars on Trustpilot.

Application process (15%)

• Online application (5%): We awarded points in this area to lenders that provide an online application process.
• Average funding speed (10%): To earn the maximum points in this area, a lender must offer same-day funding for approved loans.

Business lines of credit methodology

How we choose the products we ranked

We choose the products included in our rankings based on a variety of eligibility factors. This includes making sure each lender is legitimate and trustworthy based on customer service, reviews and more. Additionally, we look at whether a lender’s APRs are reasonable according to common practices.

We also consider if any actions have been taken against a lender by the CFPB or other federal agencies. If so, a lender could be disqualified from our rankings depending on the severity of the violations and their impact on customers.

Looking to borrow on an as-needed basis? Compare the best business lines of credit

Best business lines of credit ranking factors

We used the following factors (with weightings) to determine our business line of credit rankings:

• Loan details: 30%.
• Loan cost: 15%.
• Eligibility and accessibility: 25%.
• Customer experience: 15%.
• Application process: 15%.

These factors were chosen based on what is typically most important to borrowers. For example, a borrower will likely consider elements like loan amounts, repayment terms and eligibility criteria (like minimum credit score, time in business and annual revenue requirements) to decide if a business line of credit is right for their situation.

Here’s how our factors break down, with weightings for each subfactor that comprises a category. We also included explanations for how lenders could receive the highest score in each particular area:

Loan details (30%)

• Minimum loan amount (10%): Depending on your business, you might only want to borrow a small amount. In accordance with this, we gave the highest points in this area to lenders that offer credit lines under $10,000.
• Maximum loan amount (10%): In other cases, a business could need a large amount of funding to cover expenses. Based on this, we awarded the highest points in this area to lenders that provide credit lines larger than $500,000.
• Maximum repayment term (10%): While a business line of credit can provide access to funds on an as-needed basis, you’ll often have a repayment term to pay back each withdrawal you make. To earn the highest points in this area, a lender must offer terms longer than one year (or provide ongoing access with no set term).

Loan cost (15%)

• Minimum APR (5%): Depending on the lender, a business loan might come with a typical APR or a factor rate. We gave the highest amount of points in this area to lenders with minimum APRs below 7%. If a lender charged factor rates, we converted that into an interest rate — if it was below 7%, that lender received full points.
• Maximum APR (5%): We awarded the highest points in this area to lenders that cap their APRs below 23%. If a lender charged factor rates, we converted that into an interest rate — if it was below 23%, that lender received full points.
• Fees (5%): Fees can add to your overall borrowing costs. In accordance with this, we gave points in this area to lenders that don’t charge fees — such as late fees or prepayment penalties.

Eligibility and accessibility (25%)

• Credit score (15%): Business lenders often consider your personal credit when reviewing an application. We awarded the highest points in this area to lenders that accept credit scores below 620.
• Time in operation (10%): Lenders want your business to be stable — as such, your business must be in operation for a minimum amount of time. We gave the highest points in this area to lenders that accept applications from businesses that have operated for one year or less.

Customer experience (15%)

• Customer service hours and access options (5%): We awarded the maximum points in this area to lenders that are available seven days per week, provide service past 6 p.m. Eastern Time (ET) and offer multiple contact options.
• Mobile app (5%): We gave points in this area to lenders that provide a mobile app to their customers.
• Trustpilot reviews (5%): Customer reviews can help you decide if it’s a good idea to work with a lender. The highest points in this area were given to lenders that have earned five stars on Trustpilot.

Application process (15%)

• Online application (5%): We awarded points in this area to lenders that provide an online application process.
• Average funding speed (10%): To earn the maximum points in this area, a lender must offer same-day access to funds for approved borrowers.

How we collect data

We rely on lenders when doing our research — never on third-party sources. We research each individual lender by reviewing their website and collecting data. Then, we reach out to each lender directly to collect additional information and get clarification on any details we were unable to find on the website. 

We regularly recheck and update our lender information. Our data team also researches each lender annually to verify that the data is up to date.

In some cases, lenders don’t disclose certain details on their website and either don’t reply to our inquiries or don’t disclose the information at all. When this is the case, the lender does not receive any points for that factor at all and it’s marked as “Does not disclose.” 

USA TODAY Blueprint’s editorial standards

Every article is fact checked by our writers and editors along with our data and compliance teams to ensure we have the most accurate and up to date information. Our team uses a data-driven methodology based on what borrowers value most to determine each rating. 

We pride ourselves on our journalistic integrity and our goal is to always empower our readers to make sound financial decisions. Advertisers do not influence any of our content, opinions or evaluations.