The Best Low-Interest Business Loans of 2024

Camino Financial09 Jan 2024
The Best Low-Interest Business Loans of 2024
This guide will cover the best low-interest business loans, the lenders that offer them, and a myriad of advice you can follow to secure the proper funding. Take time to examine each point covered, so you're more prepared to handle the complicated process of securing business funds. There's a lot to consider, and being well-informed about the pros and cons of each offering will empower you to choose funding options that fit your plans.
Table of Contents
1. Best low-interest business loans in 2023
2. Which rates are considered low-interest?
3. Types of low-interest business loans
4. Where to get business loans with low-interest
5.  How to choose a low-interest small business loan
6. How to apply for a low-interest business loan
7. Tips to getting lower interest rates
8. Alternatives to low-interest small business loans
9. FAQs

Best Low-Interest Business Loans in 2023

The interest on business loans can make or break the decision to apply for one of the many funding options in today’s lending market. To help make the process of applying for a business loan easier for small business owners, we’ve collected information from six lenders that offer the best business loan interest rates in 2023.


Bluevine is a line of credit-type loan that offers up to $250,000 for qualifying businesses, with 6-12 months repayment terms. Interest starts at 4.8%, and qualifying businesses only need $10,000 in minimum annual revenue. Businesses must be in operation for six months to qualify and have a credit score of at least 600. To apply for Bluevine lending options, provide basic pieces of information in the lender’s online application platform. You must then link your business bank account to the application to allow Bluevine to review your finances. Pre-filling the application forms can be done by also linking your company’s accounting software. Approval usually takes around one business day.

Features and Cons

  • Revolving credit option
  • Same-day funding available
  • Minimal qualification requirements
  • Large fees are sometimes required
  • Availability is limited in some states.

Funding Circle

Funding Circle is an online lender that offers term loans worth up to $500,000 with APRs between 10.64% and 31.85%, with terms of up to 7 years. Unlike other lenders on the list, this one does not require a minimum annual revenue but does require at least two years in operation to qualify. Qualifying businesses must also have had no bankruptcies in the past seven years, and the minimum credit score requirement is 660. Business owners can apply for business loans with Funding Circle online, and in addition to offering business loans, Funding Circle also refers applicants to lenders who might be more suitable for their business needs.

Features and Cons

  • Competitive rates
  • Fast funding available
  • Business lien and personal guarantee required

Credibility Capital

This online term loan option offers up to $500,000 with an APR between 8.99% and 17.99%. Terms can be between 0 and 5 years. To qualify, a business must operate for at least two years with a minimum annual revenue of $200,000. Qualifying businesses must also have no bankruptcies in the past five years and a credit score of 650 minimum. Credibility Capital offers a digital application, which only takes a few minutes initially. Applicants will provide basic information and documentation, including bank statements. After determining qualification, the applicant will submit additional paperwork, and the lender will perform a hard credit inquiry. The applicant can receive funding in 3-5 business days if approved.

Features and Cons

  • Competitive rates
  • No prepayment penalties
  • Fast approval and funding turnaround
  • High annual revenue required
  • Business lien and personal guarantee required
  • Not available in North/South Dakota, Nevada, and Vermont

Tab Bank

Tab Bank offers a maximum loan amount of $200,000 with an APR of 8.99-35.99%. The terms range from 12-60 months. To qualify, a business must operate for at least two years with a minimum of $100,000 annual revenue. The minimum credit score to qualify for this loan type is 650. For convenience, you can apply for a loan with Tab Bank online.

Features and Cons

  • There’s no prepayment penalty.
  • Businesses can apply for this loan online.
  • There are origination fees and document fees involved.
  • This loan requires a business lien and personal guarantee.

PNC Bank

PNC Bank has a loan option for up to $100,000 with an APR of 14.49-16.49% (market prime rate plus 7.49% or 9.49%). To qualify, a business must operate for at least three years with a minimum of $100,000 annual revenue. The minimum credit score to qualify for this loan type is 720. Depending on the exact loan chosen, terms are between 2 and 5 years or up to 25 years for SBA loans. Applicants can apply for PNC Bank loans over the phone, online, or at a physical branch, though the online option is only available for existing PNC customers. The application will ask for the purpose of the loan, the type of loan, the loan amount, and (if needed) the collateral the applicant plans to use. The lender will then review all of the information listed in the application, review finances, and pull credit history.

Features and Cons

  • This loan has a competitive interest rate on lines of credit.
  • Approval and funding can be completed in as little as one business day.
  • Repayments are on a monthly basis with no set term.
  • The requirements are strict.
  • The loan requires a personal guarantee.
  • Certain states and industries aren’t eligible for this loan type.

SBA 7(a) Loan

The Small Business Administration offers a 7(a) loan for small businesses of up to $5,000,000 with an APR of 9.25-11.75%. Depending on the loan type, terms can be up to 25 years for repayment. Only for-profit businesses qualify, and businesses must first use other financial resources for consideration. Further qualifications might be required depending on the individual lender. The minimum credit score required is 650. To apply, applicants need to determine their eligibility for the desired loan type. If applicants meet the basic requirements, they’ll be matched with a lender. The applicant must then provide the necessary documents (tax returns, cash flows, business licenses, financial statements, etc.). The lender will then review the information provided in the application, pull credit reports, and determine whether the applicant is approved or denied a loan. This process can take up to a couple of months for a final decision to be reached.

Features and Cons

  • Long repayment terms are available.
  • Capped interest rates
  • Available as a term loan or lines of credit
  • Collateral is usually required.
  • Processing times can be longer for online applications.
  • A personal guarantee is required.

Which Rates Are Considered Low-Interest?

According to the Federal Reserve, the average current interest rate on business loans lies between 3.19% and 6.76% in 2022, so anything lower than that is considered a low-interest rate. Business loan interest rates in 2022 will now be 7.5% and 10.5% for most SBA loans. Several things factor into how low an interest rate can be; the main ones are:
  • the loan type,
  • the lender,
  • your company’s financial standing,
  • and the collateral you can offer.

Types of Low-Interest Business Loans

Types of small business loans include lines of credit, accounts receivable financing, term loans, working capital loans, small business credit cards, equipment loans, and SBA loans.

Lines of Credit

This loan type works somewhat like a credit card. Businesses can borrow a certain amount of money and only pay the interest on that amount. The funds can be drawn and repaid repeatedly, so long as the borrower doesn’t exceed the limit or fails to repay the credit line.

Accounts Receivable Financing

This type of loan involves borrowers selling their accounts receivable or their outstanding invoices. Lenders assume the risks associated with these agreements, and to take them, the lender provides a business with some sort of payment.

Term Loans

Term loans are small business loans that a company has a certain amount of time to repay. That repayment period is called a term, and with term loans, the borrower pays the funding back on a schedule in a fixed amount that includes interest charges. This is similar to a mortgage payment or car loan.

Working Capital Loans

Working capital loans finance day-to-day business operations such as payroll. Usually, the funds available and the repayment terms for this loan type are shorter than other loan types.

Small Business Credit Cards

Unlike personal credit cards, small business credit cards keep track of the borrower’s spending habits. Additionally, these loan types enable business owners to save money on business expenses they need to keep their business in operation. Otherwise, they work similarly to other credit card types.

Equipment Loans

These loans help small businesses repair the equipment it needs or purchase new equipment. Equipment loans are ideal for construction companies, medical facilities, food production companies, and other businesses that rely on working equipment to operate. Equipment loans usually have lower funding amounts, and the repayment terms are shorter than those of standard loans.

SBA Loans

These are government-backed loans designed to help business owners expand their small companies. They’re often desirable because they’re a guaranteed type of loan, which means that if the borrower cannot repay the amount to the lender, the SBA will pay a high percentage of the total loan amount.

Where to Get Business Loans With Low-Interest

Try the following loan sources first, and you’ll likely find the lowest interest rates: Small Business Administration lenders, government-backed programs, CDFIs, and big-name national banks. National banks that offer the best low-interest loans option include PNC Bank, JPMorgan Chase Bank, Bank of America, Wells Fargo, and US Bank. The Small Business Administration has several loan options available, including 7(a) loans, 504 loans, microloans, and even grant opportunities for COVID relief. Small businesses may also take advantage of business loans from online lenders. Online lenders are an increasingly popular option for small businesses, offering lower interest rates than traditional banks and often more lenient credit requirements. Most online lenders have their own proprietary algorithms to assess risk and price their loans accordingly, meaning businesses can potentially access capital at a much lower cost than traditional banks. Examples of online lenders include Camino Financial, Kabbage, OnDeck, and Funding Circle. It is important to note that while these loans may have lower interest rates, they are typically short-term loans with higher payments due in a shorter amount of time. Business owners should carefully calculate the potential cost when considering an online loan.

How to Choose a Low-Interest Small Business Loan

To choose the right low-rate business loans, applicants must consider several factors, like terms, amount, type of funding, requirements, and fees. Several lending platforms allow applicants to compare loan options by selecting a few and determining their differences. However, if this option is not available, applicants can compare loan options in the following ways:
  • Collecting information regarding the terms and requirements of each loan type
  • Checking lender reviews online via third-party review sites
  • Narrowing down qualifications to eliminate the potential choices
  • Finding the lowest business loan interest rates
  • Speaking with an advisor at the Small Business Administration
While business loans with low-interest rates are ideal, sometimes the lowest rate doesn’t make the best loan. Applicants need to weigh the pros and cons of each option. Choosing a loan with a rate that’s low, but not the lowest, might be a better option if all of the other requirements apply.

How to Apply For a Low-Interest Business Loan

  1. Before starting an application with any lender, it’s important to research the options available first and foremost.
  2. Applicants need to determine their eligibility before investing time in filling out an application for a business loan.
  3. During this process, collect information about your business, including your credit score, available collateral, annual revenue, and business history.
  4. Gather all of the documents you need: your business plan, business lease, business license, tax returns, financial statements, profit and loss statements, bank statements, etc.
  5. Determine the purpose of your business loan. Will it finance new equipment, cover daily operations, or establish a brand-new business? The reason behind a loan application can be an important element to consider.
  6. Finally, explore the types of business loan offerings available to you and decide which one fits your needs.
It’s crucial to provide as much information as the lender asks for, increasing the chances of being approved for a loan. Apply for a business loan today

Minimum Requirements

Every low-interest business loan is going to come with a list of minimum loan requirements. These include credit scores, time in business, annual revenue, debt-to-equity, the type of business you own, your cash flow, and sometimes much more. Typically, the lower the interest rate on business loans, the higher the minimum requirements. For example, you might find a small business loan offering a 4-5% interest rate. Still, to take advantage of this rate, your business might have to make significant annual revenues, or you might need to have a high credit score and several years of operation as a business.

Tips to Getting Lower Interest Rates

For greater chances of securing the best rates on business loans, try the following:
  • Educate yourself about the lender and the company’s lending practices
  • Offer collateral if possible
  • Try a high down payment (if required)
  • Contact multiple lenders and compare options
  • If you apply in person, go into your appointment prepared, poised, and professional.
  • Work with a familiar lender (a lender you’ve borrowed from before, if applicable)
  • Ensure that you have a strong application: a strong application will include high credit scores, low monthly debts, and a sound business plan.

Alternatives to Low-Interest Small Business Loans

After researching your options, you might consider alternatives if a business loan with a low-interest rate doesn't meet your needs. A bank loan, business grants, personal loans, a business line of credit, and business credit cards are worth exploring if you can’t or don’t want to apply for a business loan. Business grants can be a great option because, if your business qualifies, you are not obligated to repay the funds you receive. At least so long as the funds were invested according to the grant’s requirements. A personal loan might also be a decent option because these lending options are sometimes easier to secure and have reasonable requirements. Business credit cards are also worth considering because even though the credit limit is usually low compared to business loans, this type of funding is revolving. As soon as you make monthly payments on the credit card, you still have funds available in the account.

Camino Financial

A Camino Financial loan for your business can be a great option. Our business loans are easily accessible to those who do not meet the requirements of traditional bank loans. To qualify, you will need:
  • Have your business registered for at least 12 months.
  • You can get from $10,000 to $50,000
Apply for a business loan today


Which bank takes the lowest interest on a business loan?

The specifics can vary depending on the type of loan involved and the borrower’s circumstances, but generally, traditional banks and credit unions offer the lowest interest rates on business loans.

What is the minimum interest rate for a business loan?

In 2022, the lowest interest rate available for business loans is around 3%, though this rate can vary depending on the unique circumstances involved in the application. Typically, anything between 3% and 10% is considered a very reasonable rate.

What is the lowest interest rate for an SBA loan?

For one of the SBA’s 7(a) loans, the lowest rate in 2022 is 5.8%, though COVID relief loans can be as low as 3.75%, and loans for non-profit businesses can be down to 2.75%.

Which lender has the lowest interest rate on a business loan?

This depends on a variety of factors. Bluevine interest rates start at 4.8%, though several other lenders might be willing to drop their interest rates to 4% or less if the borrower meets all of the requirements the lender calls for.

What is a small business loan?

Small business loans include a set of specific loans available for small businesses. To qualify, a company must be recognized as a small business based on the qualification requirements determined by the various lenders. Covering how each loan works can be complicated as the variety of loan types may have highly specific requirements, and terms included. To simplify the explanation, though, small business loans work similarly to any other loan type in that applicants who receive funding must repay the borrowed amount (and pay interest) within a given term limit.

What is the typical rate for a business loan?

The standard rate for business loans is 3.19% to 6.78%, though SBA loans and specialty business loans (like those for nonprofits) can be even lower than the standard rate. Fortunately, it’s predicted that interest rates for small business loans might drop as low as 3% in 2023 if you seek funding from a traditional bank. However, other lenders like the SBA or smaller online lenders may have higher interest rates attached to their loan offerings. Finding the right type of funding for your business is no simple task, but now that you know the basic elements involved in securing a business loan, you should be able to make educated choices regarding the options ahead. Take your time and research each option carefully to ensure that you’re not only getting the most reasonable interest rate but you’re securing a loan that best meets the needs of your growing company.

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