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Published: Jan 13, 2023 19 min read
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Applying won’t affect credit score

  • Loan Amounts: $5,000 to $250,000
  • Average Yearly Revenue requirements:$100,000
  • Minimum Credit Score: 625 FICO
  • Minimum Time in Business to apply: 1 year
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Loans best for small to mid sized businesses who need capital, FAST

  • Loan Amounts: $10,000 to $500,000
  • Average Yearly Revenue requirements: $250,000
  • Minimum Credit Score: 600 FICO
  • Minimum Time in Business to apply: 6 months
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Merchant cash advances, invoice factoring, equity financing, and debt financing option

  • Loan Amounts: Up to $5 million
  • Average Yearly Revenue requirements: $120,000
  • Minimum Credit Score: 620 FICO
  • Minimum Time in Business to apply: 1 year
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Pay a monthly fee each month you have an outstanding balance

  • Loan Amounts: Ranging from $2,000 to $250,000
  • Minimum Credit Score: 660* FICO
  • Minimum Time in Business to apply: At least 1 year
*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors. Regarding all minimum requirements that are highlighted, be aware that all businesses are unique and are subject to review and approval
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No cost and no credit check application that can be filled out in minutes

  • Loan Amounts: Up to $3 million
  • Average Yearly Revenue requirements: $200,000
  • Minimum Credit Score: 620 FICO
  • Minimum Time in Business to apply: 1 year
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Online tracking platform + personal Account Manager keep your business goals in check

  • Loan amounts: $5,000 to $500,000
  • Average yearly revenue requirements: $250,000
  • Minimum credit score: None
  • Minimum time in business to apply: 1 year

LLC loans are small business loans made to an LLC or limited liability company. Loan proceeds can be used to start or expand the business or for working capital.

You have many funding options available as an LLC, from startup loans to term loans and lines of credit. There are also plenty of lenders to choose from, including credit unions, traditional banks and online lenders.

With so many alternatives out there, getting started could seem daunting. To help you narrow down your options, we've picked some of the best online lenders and loan options for LLCs. Read on to find out more about our top picks and learn about various loan options available for your business.

Our Top Picks for the Best LLC Loans

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Best LLC Lenders Reviews

Pros
  • Borrowers can access a dedicated U.S.-based loan advisor
  • Same-day funding on some loans
  • Loyalty benefits available for repeat borrowers
Cons
  • Cannot lend to a number of restricted industries
  • Both term loans and lines of credit have high APRs
  • Not available in all states
HIGHLIGHTS
Loan types
Term loans and lines of credit
Loan amounts
$6K–$100K for LOC, $5K–$250K for term loans
Repayment terms
Up to 12 months for LOC, 24 months for term loans
Min. credit score
600 FICO score
Min. time in business
1 year
Min. annual revenue
$100,000

Why we chose this lender: OnDeck stands out due to its same-day funding options for qualifying businesses, relatively low credit score requirements and relatively high lending limits. This can be a solid combination for businesses in need of short-term financing and quick access to cash.

OnDeck offers two funding options, a line of credit and a term loan. Borrowers can apply online or over the phone. Regardless of how you apply, OnDecks' loan officers are available for support as needed.

While ACH transfers can take up to three business days with other companies, OnDeck's quick application process allows eligible borrowers to obtain same-day funding. Another way OnDeck stands out from the crowd is through its discounts for returning customers. The lender will waive any remaining interest on your existing loan and lower or waive the origination fee if you apply for a new small business loan.

Interest rates with OnDeck start at 29.9% APR, yet the actual cost of borrowing will depend on a number of factors. These include time in business, your personal and business credit scores, business cash flow and revenue. As such, your APR may be higher than OnDeck's starting rates.

OnDeck has a Trustpilot score of 4.8 out of 5 with over 3,650 reviews. It also has an A+ rating with the Better Business Bureau. On BBB, the lender has received 35 customer complaints over the past three years, with nine closed over the past year. The most recent complaints against OnDeck appear to be related to issues with the company’s billing and collections process. Nevertheless, the company has a customer response rate of 100%.

Pros
  • Quick processing; decisions in as little as 5 minutes
  • Accepts companies that have been in business for six months
  • Same-day funding on some loans
Cons
  • Some lines of credit may require weekly payments
  • Not available in all states
HIGHLIGHTS
Loan types
Lines of credit
Loan amounts
Up to $250,000
Repayment terms
6 or 12 months
Min. credit score
625 FICO score
Min. time in business
6 months
Min. annual revenue
$10,000

Why we chose this lender: Bluevine is a financial technology company that offers business lines of credit of up to $250,000. These can be a good solution for small business owners looking for fast working capital or funding for other short-term business needs.

Bluevine offers flexible lines of credit with repayment terms that range from six to 12 months. And tapping the line is as easy as clicking a button on the company's website or mobile app. Bluevine also offers online business checking as well as an online business bill paying system, so users who combine all three of its services have access to a robust business banking suite.

Bluevine's application process is quick and relatively simple. Prospective borrowers can usually find out if they’ve been approved in a matter of minutes. Once a borrower is approved, they can withdraw the funds online or on the mobile app with a single click. As a plus, Bluevine doesn't charge fees for opening, maintaining, closing or repaying a line of credit early.

While a Bluevine line of credit can be a good option for companies that need funds quickly, prospective customers should keep in mind that borrowing costs can be relatively high. Rates start at 6.2% (based on simple interest) over a 26-week repayment period. On an APR basis, that translates to 20% to 50%.

Bluevine has earned an A+ rating from the Better Business Bureau. Its rating on Trustpilot is 4.3 out of 5.0 with over 7,000 reviews. Though online customer feedback appears to be mostly positive, some users complain about issues with account access and Bluevine's customer service.

Pros
  • Apply online in a few simple steps
  • Several repayment options available
  • No hidden fees or prepayment penalties
Cons
  • Loans require a personal guarantee
  • Complex monthly fee structure makes it hard to comparison shop
HIGHLIGHTS
Loan types
Lines of credit
Loan amounts
From $2,000 to $250,000
Repayment terms
6,12, 18 or 24 months
Min. credit score
660 FICO score*
Min. time in business
12 months
Min. monthly revenue
$3,000

Why we chose this lender: American Express Business Blueprint™, formerly known as Kabbage, offers a fast online application process, and borrowers can easily connect their business bank account for a seamless funding process. Applicants with an American Express card in good standing can also apply for pre-approval from their online account. Additionally, not all lenders in this space have the backing of a financial services giant like American Express.

Business owners can apply for between $2,000 and $250,000 in credit and choose between four repayment terms: 6-, 12-, 18- and 24 months.

Total monthly fees incurred over the loan term range from 3-9% for 6-month loans, 6-18% for 12-month loans, 9-27% for 18-month loans and 12-18% for 24-month loans, and are subject to change for future loans drawn under the available line of credit. Fees are calculated based on the loan's term and outstanding balance, but there are no prepayment penalties.

The required FICO score as highlighted below may be higher based on your relationship with American Express, credit history, and other factors. Also, regarding all minimum requirements that are highlighted, be aware that all businesses are unique and are subject to review and approval.*

A potential cautionary note is that Trustpilot rating for Kabbage, the previous brand name, is only 2.8 out of 5 stars. This rating may or may not still be relevant due to its acquisition by American Express in 2020.

Pros
  • Access to over 75 lenders within its network
  • Offers a wide range of loan types
  • Access to a funding specialist
Cons
  • Loan terms, including prepayment penalties, vary by lender
  • Funding times may vary by lender
HIGHLIGHTS
Loan types
11 borrowing options from over 75 lenders
Loan amounts
Up to $250,000
Repayment terms
6 months, on average
Min. credit score
As low as 560 but 600+ is suggested
Min. time in business
Varies by lender
Min. annual revenue
Varies by lender, $8,000+ suggested

Why we chose this lender: Lendio is a small business loan marketplace that partners with over 75 lenders. After completing a single application, Lendio will match you with lenders that fit your borrowing needs. It also connects applicants with funding specialists who can help them find the best loan options for their situation.

Working with a loan marketplace means that borrowers have the opportunity to compare offers from multiple lenders. And with Lendio, you can apply for funding in as little as 15 minutes and get approved as soon as the same business day. In some cases, you can obtain funding within 24 hours, and there are no application fees.

Funding options available through Lendio include:

  • Accounts receivable financing
  • Business line of credit
  • SBA loans
  • Short-term loans
  • Business term loans
  • Business cash advance
  • Equipment financing
  • Commercial mortgages
  • Start-up loans
  • Business acquisition loans
  • Business credit cards
Pros
  • Fast, easy application process
  • Approval and funding in as little as 24 hours
  • Access to a funding specialist
  • Qualify with a 600 credit score and six months in business
Cons
  • APR and fees are not as transparent
  • Daily or weekly loan payments
  • Relatively high borrowing costs
HIGHLIGHTS
Loan types
Equipment financing, working capital loans, unsecured business loans
Loan amounts
Up to $400,000
Repayment terms
Vary by loan type
Min. credit score
As low as 600
Min. time in business
6 months
Min. annual revenue
$250,000

Why we chose this lender: National Funding claims fast approval, a simple application process, personal service and customized solutions to help small businesses achieve their goals. Once you apply, a loan specialist will work with you to determine the best lending solution for your small business needs.

National Funding offers secured and unsecured small business loans, working capital loans and several other funding options. Its small business loans range from $5,000 to $400,000, while its equipment financing and leasing options can provide borrowers with up to $150,000 for the purchase of new or used equipment.

Its loan application is simple, and borrowers can receive approval in less than 24 hours. In many cases, small businesses can get funding within 24 hours as well. One drawback of working with National Funding, however, is that borrowing costs can be as high as 15% to 30% of the loan amount, which could translate into an APR of almost 80%. Companies must have been a minimum of 6 months in business to apply and there's a minimum yearly revenue requirement of $250,000 as well. Finally, bear in mind that loans are offered based on factor rate not annual percentage rate (APR).

National Funding is one of our top picks for the best small business loans of the year and has a Trustpilot rating of 4.8 out of 5.0 based on almost 1,600 reviews. It's accredited with the BBB, with an A+rating and has received only 93 customer complaints over the past three years, all of which have been resolved.

Pros
  • Applying won't impact your personal credit score
  • Funds can be in your bank account as soon as the next day
  • Access funds from the mobile app or your online dashboard
Cons
  • Short repayment terms
  • Low maximum credit line limit of $150,000
HIGHLIGHTS
Loan types
Business lines of credit
Loan amounts
Up to $150,000
Repayment terms
12 to 24 weeks
Min. credit score
600 FICO score or higher
Min. time in business
6 months suggested minimum
Min. annual revenue
$100,000 or more

Why we chose this lender: Fundbox emphasizes working capital as a focus of its small business lending. It offers a quick application process powered by AI, fast access to funding and flexible repayment terms. Borrowers who use Stripe can also access working capital directly from the app.

Fundbox requires a relatively low 600 FICO score for loan approval and accepts businesses that have been operating for as little as six months. These features, along with its fast funding and relatively easy application process, cater to the types of businesses that might have a greater need for working capital.

The company's AI-driven approach to lending also allows it to offer credit decisions in as little as three minutes. Funds can be accessed as soon as the following business day once the loan is approved. Lastly, it offers flexible repayment plans that allow borrowers to choose a different option each time they draw funds from their line of credit.

Fundbox has a Trustpilot rating of 4.7 out of 5 with over 3,000 reviews. It also received a rating of A+ from the Better Business Bureau. While it has received a few complaints (14 in total) over the past three years, half of those complaints are listed as closed, and the company seems to respond to customers quickly.

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Other companies we considered

TD Bank

Pros
  • Known for its loans for healthcare professionals
  • Wide range of loan types
  • Offers full business banking services
Cons
  • Larger loan amounts require in-person applications
  • Branch locations only in 15 states on the East Coast
  • Doesn't disclose rates or loan costs

TD Bank offers a wide range of lending options for small businesses including term loans, business lines of credit and SBA loans. This lender is known for its specialized loan options for restaurant franchisees and healthcare professionals. One downside of working with TD Bank is that it doesn't publicize its rates, which makes comparison shopping difficult.

The main reason we didn't include it on our list of best lenders is its poor Trustpilot rating of 1.3 out of 5.0, which is based on over 1,600 reviews.

Biz2Credit

Pros
  • No industry restrictions for lending
  • Offers commercial mortgages with interest-only payment options
  • Dedicated funding specialist
Cons
  • High annual revenue requirements
  • Not a direct lender
  • Fees are not as transparent as they could be
  • Loans not available in all states

Biz2Credit is a small business lending platform that offers commercial real estate loans, business term loans and working capital loans. The main reason we did not include it on our list was its pattern of customer service complaints on popular online consumer review platforms.

Funding Circle

Pros
  • High loan amounts
  • Term lengths of up to seven years
Cons
  • Charges an origination fee
  • Not available to businesses based in Nevada
  • Some term loans may require collateral

Funding Circle is a technology-driven lender that offers term loans, business lines of credit and SBA 7(a) loans. Its application process allows applicants to be considered for all three types of business financing.

While Funding Circle has good customer service ratings and offers quick funding, it requires a higher credit score (660) than other lenders on our list and businesses must have been in operation for at least two years to qualify. Additionally, depending on the loan term you choose, it may require a personal guarantee.

TAB Bank

Pros
  • Offers a variety of business loan options
  • Loan terms from 12 to 60 months
  • Highly rated mobile app
Cons
  • Maximum loan amount is $250,000
  • Loan details not easily available
  • Not a good option for borrowers with low credit scores

TAB Bank is an online bank that serves customers in all 50 states. It offers a range of business loan options and banking services. There isn't much information on its site about credit score requirements or loan costs. While not a bad option, we felt the banks on our top list offered better alternatives for small businesses.

PNC Bank

Pros
  • Can offer larger loan amounts
  • Offers a range of loan types to choose from
Cons
  • Most have been in business at least three years
  • Must have a near-spotless credit history
  • Personal guarantees required on smaller loans

PNC is an excellent bank with a solid reputation. For business borrowers who meet its stringent criteria, it's an excellent option. We didn't include it among our top picks because it's not a great option for smaller, newer LLCs and start-ups. It's also not a good lender for business owners with a less-than-stellar credit history.

LLC Loans Guide

What is an LLC loan?

An LLC loan is a small business loan made specifically for a business that is structured as an LLC.

Generally, the criteria for loan approval are the same regardless of whether the borrower is an LLC, S-Corp or other types of business entity. Lenders are mostly concerned with the various metrics of the business, such as its annual revenue and time in business, and the owner's credit score, among other factors.

What loan types are available to LLCs?

There are a number of loan types available to LLCs, yet these options vary by lender. The best type of LLC loan for a given business will vary by the needs of the company.

Additionally, not all loan types are available to all businesses, as qualification criteria may vary by funding option.

Here are some of the most common types of LLC loans:

  • Term loans: These are loans that must be repaid within a predetermined amount of time or term. The borrower receives a lump sum at the time the loan is approved. They then make periodic payments of interest and principal, typically on a monthly basis, until the loan balance is repaid.
  • Business lines of credit: A flexible borrowing option that allows businesses to tap into a pre-approved amount of funds on an as-needed basis, but for a set period of time only. Businesses pay interest only on what they've borrowed. This loan option makes sense for LLCs that have fluctuating cash flow needs.
  • SBA loans: Business loans issued through commercial banks but guaranteed by the Small Business Administration for up to a specified percentage. If the borrower defaults, the lender is protected against losses. This allows lenders to offer lower rates and better terms on SBA loans. However, businesses must meet the SBA’s stringent eligibility requirements.
  • Invoice factoring: This option entails the sale of outstanding invoices to a factoring company in exchange for a lump sum of cash. This lump sum will be a fraction of the face amount of the receivables, often between 70% to 95%. The factoring company assumes the responsibility for collecting the balances due on the invoices. They then remit the invoice's remaining balance to the borrower, less any factoring fees.

Other types of small business loans and financing arrangements include the following:

  • Business cash advance
  • Equipment financing
  • Commercial mortgages
  • Start-up loans
  • Business acquisition loans
  • Business credit cards

Main things to know before choosing an LLC loan lender

As with any type of business or personal financial transaction, you should take the time to learn as much as possible about any LLC loan lender you may be considering. We recommend looking into the following:

  • The lender’s reputation for customer service. Ask colleagues and read online reviews from sources such as Trustpilot, the Better Business Bureau and others
  • Available loan types and their respective minimum qualification requirements
  • Loan repayment terms, interest rates and fees
  • Any collateral or personal guarantee requirements (i.e.whether there will be any type of lien on the business)

Also consider whether the lender offers any type of guidance or support during the application process and once you're a customer.

How can you apply for an LLC loan?

Loan applications vary by lender. In some cases, you may be able to apply in person if the lender has a physical brick-and-mortar location near you, as might be the case with a bank.

Other lenders, such as the ones featured on this list, give you the option to apply over the phone, online or through a mobile app.

How to handle taxes on LLC business loans?

The money you receive from a business loan doesn't count toward business income. Similarly, principal loan repayments aren't eligible for business tax deductions — but business expenses paid for with the loan proceeds may be. For example, if some or all of the loan proceeds are used to meet payroll obligations, those could be considered deductible business expenses.

Interest payments made on a business loan are generally eligible for a business tax deduction, as these are generally considered business expenses.

In all cases where there are tax questions regarding an LLC loan, we suggest that the borrower consults with their tax professional for advice.

LLC loans FAQs

How can I acquire a loan through an LLC?

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An LLC is a distinct business entity that may be eligible for small business funding, provided the owner or managing member of the LLC has the proper business documentation.

And while the loan may be in the name of the LLC, many lenders require the business owner to offer a personal guarantee. Some lenders also consider the owner's personal credit score as part of their vetting criteria.

Can I transfer LLC funds into another LLC?

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Typically, lenders issue loans to distinct entities, which in this case is the LLC applying for the loan. Whether the loan could be transferred to another business will depend on the circumstances and the lender's rules.

In the case of acquisition, the acquiring LLC would generally assume the debts of the LLC being acquired. When questions like this arise, it is always best to consult with an attorney who is knowledgeable in this area.

Do I need an LLC to apply for a small business loan?

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You don't need to be an LLC to apply for a small business loan. Lenders generally issue small business loans to many types of business entities, including S-Corps, sole proprietors, corporations and others.

Most lenders have distinct qualification requirements for different funding options and may even offer industry-specific loans. Ask your lender whether a particular loan type is available to you before starting the application process.

Which documents do I need to apply for an LLC loan?

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The documentation required for a loan will vary by lender and loan type. Typically, prospective borrowers will need some or all of the following documents:

  • Business tax returns and financial statements
  • Personal tax returns for the business owner
  • Loan application
  • Business plan
  • Business bank statements
  • Business registration and licenses, as applicable
  • Business EIN (employer identification number)
  • How can I merge an LLC with an SBA loan?

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    An LLC with an outstanding SBA loan is free to engage in mergers as long as it remains in compliance with the terms of the SBA loan. This might mean adding another member to the LLC or acquiring another business entity. Consult with your accountant or an attorney knowledgeable in these matters to ensure you remain in compliance with the loan terms.

    How can I report income from LLC loans?

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    The proceeds of the LLC loan are not considered income, and principal loan payments are not considered deductible business expenses for tax purposes. However, the interest and any fees paid on a business loan are generally considered deductible business expenses. In many cases, normal business expenses paid with the loan proceeds could also be considered deductible business expenses.

    How we found the best LLC loans

    To find the best LLC lenders of 2023, we looked into the following:

    • Types of small business loans offered: We looked for companies offering a variety of loan options for LLC owners. These typically include term loans, business lines of credit and SBA loans.
    • Loan terms: We looked at the repayment terms, credit score requirements and other factors, taking care to select companies that are transparent about such details.
    • Ease of use: We also considered the ease of using each company's website and whether or not there is access to live support during the application process.
    • Reputation and reviews: We looked at reviews on Trustpilot, the Better Business Bureau and other sources to ensure our top picks have a good reputation among borrowers.

    Summary of the Best LLC Loans of 2023