7 Best Startup Business Loans of 2024

Getting startup funding can be a major hurdle for many new entrepreneurs. From purchasing inventory and equipment to hiring employees, every business needs capital to get off the ground. However, many traditional lenders view startups as high-risk investments and are reluctant to approve them for financing. This is where startup loans can provide critical early-stage funding.

In this review, we’ll explore the best startup business loans of 2024 to help you grow your company. We evaluated top online lenders and financing options based on loan amounts, rates, terms, eligibility, and other key factors. Whether you need a small infusion of capital or substantial funding to really accelerate your venture, there are startup business loan providers that can meet your needs.

Unsure if Uplyft Capital is right for you? Continue reading our comprehensive review below to learn more and explore your options.

Startup business loans are designed to provide new, higher-risk companies with the capital they need to launch or grow their operations. These loans can be crucial for startups that require funds for equipment, inventory, marketing, or other initial expenses. 

While traditional term loans are common, entrepreneurs may also consider lines of credit, which offer flexible access to funds as needed, or merchant cash advances, where businesses receive a lump sum in exchange for a portion of future sales. Business cash advances are similar but typically based on overall revenue rather than just credit card sales.

Whichever type of startup funding you select for your business, it is important to learn as much as you can about possible funding options and what they entail so you can make an informed decision that’s best for your specific needs. 

7 Best Startup Business Loans of 2024

1. Uplyft Capital 
2. Nav
3. Uncapped
4. Lendio
5. Capchase
6. OnDeck
7. Fundbox

1. Uplyft Capital

Uplyft Capital specializes in working capital through business cash advances, a type of business loan that doesn’t require monthly payments. Instead, these loans are borrowed against future debit and credit card sales. 

This type of funding is more accessible than alternatives such as business lines of credit or traditional business loans as the credit score and time in business requirements are lower. 

This isn’t the only type of funding available through Uplyft Capital, however. The platform also features a funding marketplaces for users to find and assess other financing types such as term loans.

Pros

• Low credit score minimum requirement 
• Funding available typically within one to two days
• Low time in business requirement 
• No monthly fees or payments required 

Cons

• High revenue minimum requirement 
• High factor rates 

Loan Details 

• Starter: $8,000-$30,000 in funding with a factor rate of 1.40
• Standard: $5,000-$125,000 in funding with a factor rate of 1.34
• Premier: $10,000-$250,000 in funding with a factor rate of 1.30 
• Premier Plus: $30,000-$500,000 in funding with a factor rate of 1.24

2. Nav

Nav’s lending marketplace allows businesses to discover, compare, and apply for financing sources all on one platform. The marketplace includes SBA loans, lines of credit, equipment financing, medical financing, business cash advances, and bank loans. Plus, users are able to filter results based on funding goals, time in business, credit range, and more. 

Loan amounts featured on the platform range from $5,000 to $10 million. With so many different types of loans and financing options available, eligibility requirements vary, making Nav a great choice for most startups looking to secure business loans. 

Pros

• Several types of financing options available 
• Nav offers other helpful business services 
• Accessible range of eligibility requirements
• More than 25 funding sources to choose from 

Cons

• Difficult user experience 
• More funding options available on other marketplaces

Loan Details 

• Loan Amount: $5,000–$10 Million
• Minimum Credit Score: Unlisted
• Term: Varies
• Fees: Varies

3. Uncapped

Uncapped funds a variety of online businesses including ecommerce, subscription, mobile apps, and SaaS companies. They empower startups with options such as fixed-rate loans with customizable repayment schedules and SaaS runway loans to enhance ARR and product improvement.

One of Uncapped’s distinct advantages is its swift application process, promising a decision within 24 hours without requiring personal guarantees or loss of equity.

To qualify for funding through Uncapped, you must operate an online-based company, earn at least $10,000 in monthly revenue, and have been in business for at least six months. 

Pros

• Higher lending limits than many competitors
• Personal FICO or credit history not required
• No fees for missed payments
• Flat interest rates

Cons

• Only available to ecommerce merchants and online businesses
• Must generate $10,000 in monthly revenue

Loan Details 

• Loan Amount: $50,000–$10 Million
• Minimum Credit Score: Doesn’t require a personal credit score
• Term: Fixed-term loans available between three and 24 months
• Fees: 2%–12% flat fee

4. Lendio

Lendio is another excellent option for small business loans, including startup loans. You can use their lending marketplace to find funding options such as accounts receivable financing, business line of credit, SBA loans, business cash advances, and more. 

Lendio’s loans are versatile, offering anywhere from $500 all the way up to $5 million. They typically take two to four weeks to fund and are available in terms of up to 25 years. The interest rates are competitive, too, ranging from 0% to 17%. 

Additionally, Lendio includes a loan calculator on their website to help users better assess their business’s funding needs. 

Pros

• Approval is quick and easy 
• No hidden fees 
• No collateral required 
• Excellent customer support 

Cons

• Credit score of at least 680 required for a startup loan
• Funding takes two to four weeks

Loan Details 

• Loan Amount: $500–$5 Million
• Minimum Credit Score: 680
• Term: Up to 25 years
• Fees: 0-17%

Learn more by reading our full review of Lendio.

5. Capchase

Capchase allows software as a service (SaaS) startups to secure non-dilutive capital against their future recurring revenue. This model provides a practical way for startups to leverage their forecasted revenue to gain much-needed funding.

With Capchase, loan amounts range from $25,000 to a substantial $10 million, making it a strong choice for SaaS startups with diverse funding needs. The Capchase platform also includes a team of growth advisors that work closely with clients to help them scale efficiently, as well as a loan calculator to help startups to figure out how much funding they should apply for based on their recurring revenue.

Pros

• Non-dilutive funding keeps equity intact
• Helps startups extend their runway
• Approval can be faster than traditional lenders
• Flexibility in loan amount and terms

Cons

• Requires at least $30,000 in monthly revenue
• Must have a certain growth rate to qualify

Loan Details 

• Loan Amount: $25,000–$10 Million
• Minimum Credit Score: Revenue-based lending doesn’t require a personal credit score
• Term: Up to 12 months
• Fees: 7-10% one-time fee depending on the loan

Learn more by reading our full review of Capchase.

6. OnDeck

OnDeck offers business lines of credit and short-term loans. The appeal of OnDeck is its accessibility and speed of funding. The credit score requirement is lower than some at 625, and it can often fund your startup within a few days if you qualify. 

One of the unique things about OnDeck is its SMART Box capital comparison tool. The tool explains in plain language the key terms needed to evaluate business loan offers. It gives you a simple, comprehensive breakdown of the cost of each so you can more easily compare loan products. 

There are a few drawbacks to OnDeck, including its requirement for a year in business, $100,000 annual revenue requirement, and frequent payments — either daily or weekly — to qualify for a loan. 

Pros

• Money is often available within a day but is always available within 3 days
• Credit score requirements are relatively low
• Application process is simple
• SMART Box Capital comparison tool makes it easier to compare offers

Cons

• Interest rates can reach almost 100%
• Must be in business for a full year to apply

Loan Details 

• Loan Amount: $5,000–$250,000
• Minimum Credit Score: 625 Personal FICO Score
• Term: Up to 24 months
• Fees: 29.90%–97.30%

7. Fundbox

Fundbox offers a single type of loan: a business line of credit. The platform boasts business funding in a single day, making this a great funding option for startups that need cash fast. 

Eligibility requirements are minimal and include six months in business, a minimum 600 personal credit score, and $100,000 in annual revenue. However, Fundbox’s line of credit incur high-interest rates compared to other lenders. 

Pros

• Funding within one business day
• Quick and easy application process 
• Time in business requirement is only six months 
• Low 600 personal credit score requirement 

Cons

• High-interest rates compared to traditional banks
• Personal guarantee requirement may apply 

Loan Details 

• Loan Amount: $150,000
• Minimum Credit Score: 600
• Term: 24 weeks
• Fees: 10.10%–79.80% APR

How to Choose the Right Startup Business Loan 

Before applying for a business loan, eligibility criteria, interest rates, repayment terms, and the type of loan that is best for your startup should all be considered. This ensures that whichever startup loan you select, it meets your business’s needs and sets your company up for success. 

Eligibility Requirements

Make sure you can actually qualify for the loan. Research eligibility requirements such as credit score, time in business, and annual revenue to determine the loans your startup qualifies for. 

Interest & Factor Rates 

Interest and factor rates can add up fast, look at how much the loan will cost you in the end. Keep in mind that loans with low eligibility requirements often incur higher interest rates. 

Type of Loan

Research different types of startup loans beyond traditional term loans such as lines of credit and merchant cash advances to determine the right type of loan for your startup. 

Repayment Terms 

Each type of funding will have different repayment terms. Assess repayment terms for loans you’re interested in and compare to your startup’s financial projections to ensure you can repay the amount borrowed. 

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