Access to business loans is essential for entrepreneurs looking to grow, expand, or stabilize their businesses. With California being a hub for startups, small businesses, and large enterprises, many lenders offer financing options tailored to the diverse needs of companies in the state. However, choosing the right loan provider can be challenging with so many choices.
This guide highlights the top 7 business loan providers in California, what makes each lender unique, and how to choose the right provider for your business.
Why Business Loans are Essential for California Businesses
Running a business in California can be rewarding but also costly. From high real estate prices to employee wages, expenses can pile up quickly. A business loan can provide the working capital needed to cover payroll, invest in marketing, buy inventory, or open a new location. Business loans can also serve as a safety net for businesses with seasonal cash flow fluctuations.
By choosing the right lender, you can get access to affordable financing, competitive rates, and flexible repayment terms that support your long-term growth.
Top 7 Business Loan Providers in California
1. Lendio
Best For: Business Owners Seeking Multiple Loan Options
Lendio is a business loan marketplace that connects small business owners with over 75 lenders. Instead of applying to one lender at a time, Lendio allows you to submit a single application and get matched with multiple loan offers.
Loan Types: SBA loans, short-term loans, business lines of credit, equipment financing, and merchant cash advances.
Loan Amounts: $500 to $5 million.
Repayment Terms: 1 to 25 years, depending on the loan type.
Interest Rates: Varies based on lender and loan type.
Why Choose Lendio?
Lendio is ideal for business owners who want to explore multiple financing options at once. Its simple application process and fast turnaround make it one of the most user-friendly platforms available.
2. OnDeck
Best For: Fast Cash and Short-Term Loans
OnDeck is a popular online lender that provides fast funding to small businesses. It’s known for its quick approval process and flexible repayment schedules. Businesses with urgent cash flow needs often turn to OnDeck.
Loan Types: Short-term loans, business lines of credit.
Loan Amounts: Up to $250,000 for term loans and up to $100,000 for lines of credit.
Repayment Terms: 3 to 24 months for term loans.
Interest Rates: Rates start at 35% APR.
Why Choose OnDeck?
OnDeck is perfect for businesses that need quick access to cash. With approvals in as little as 24 hours, OnDeck provides short-term loans to businesses with lower credit scores or short operating histories.
3. Bluevine
Best For: Business Lines of Credit
Bluevine is known for offering fast, flexible business lines of credit with straightforward terms. Unlike traditional banks, Bluevine provides credit to businesses with less-than-perfect credit scores and minimal paperwork.
Loan Types: Business lines of credit.
Loan Amounts: Up to $250,000.
Repayment Terms: 6 or 12 months.
Interest Rates: Starts at 4.8% per week.
Why Choose Bluevine?
If you need access to working capital on a revolving basis, Bluevine is a great option. Their lines of credit are flexible, and you only pay interest on the amount you borrow. The application process is fast, and funds can be available in 24 to 48 hours.
4. Funding Circle
Best For: Low Interest Term Loans
Funding Circle is an online lender that provides term loans to small businesses at rates much lower than other online lenders. This makes it a great option for businesses with good credit looking for affordable financing.
Loan Types: Business term loans.
Loan Amounts: $25,000 to $500,000.
Repayment Terms: 6 months to 5 years.
Interest Rates: Starts at 4.99% APR.
Why Choose Funding Circle?
Funding Circle is one of the few online lenders offering interest rates that rival traditional bank loans. If you have strong financials and good credit, you could qualify for a low-interest loan with repayment terms of up to 5 years.
5. Kabbage (American Express)
Best For: Flexible Credit Lines for Ongoing Cash Flow
Kabbage, now part of American Express, provides small business owners with easy access to revolving lines of credit. Businesses can apply online and access their credit line through a mobile app, making it one of the most convenient financing options.
Loan Types: Business line of credit.
Loan Amounts: Up to $250,000.
Repayment Terms: 6, 12, or 18 months.
Interest Rates: Monthly fees range from 1.5% to 10%.
Why Choose Kabbage?
If you need ongoing access to working capital and want the convenience of a mobile-friendly platform, Kabbage is a smart choice. Their line of credit allows you to draw funds whenever you need them.
6. SmartBiz
Best For: SBA Loans with a Streamlined Application Process
SmartBiz simplifies the process of applying for an SBA loan, which is known for being time-consuming. By pre-qualifying you before submission, SmartBiz reduces the time it takes to secure SBA financing.
Loan Types: SBA loans, term loans.
Loan Amounts: $30,000 to $5 million.
Repayment Terms: 10 to 25 years for SBA loans, 2 to 5 years for term loans.
Interest Rates: SBA loans start at 6.25% APR.
Why Choose SmartBiz?
If you’re seeking the low interest rates and long repayment terms of an SBA loan but want to avoid the lengthy process, SmartBiz is a great option. They pre-qualify borrowers quickly and streamline the SBA application process.
7. Bank of America
Best For: Traditional Bank Loans and Long-Term Financing
As one of the largest banks in the U.S., Bank of America provides a full range of financing options for California businesses. Their loans typically have low interest rates, but qualification criteria are stricter than online lenders.
Loan Types: Term loans, lines of credit, commercial real estate loans.
Loan Amounts: Varies depending on loan type.
Repayment Terms: 1 to 25 years.
Interest Rates: Competitive rates, but vary by loan type.
Why Choose Bank of America?
If you have a strong credit score and want access to large loan amounts, Bank of America is a solid choice. They offer some of the lowest interest rates available, making them ideal for established businesses looking for traditional financing.
How to Choose the Right Business Loan Provider
Selecting the right lender depends on your business needs, credit score, and how quickly you need funding. Here’s how to choose the best option for your business:
Consider Loan Purpose
If you need quick cash for an emergency, consider OnDeck or Kabbage. If you’re planning for a large expansion, a long-term SBA loan from SmartBiz may be better.
Check Interest Rates and Fees
Look at the total cost of borrowing. While online lenders have higher rates, they offer fast funding. If you want lower rates, consider Funding Circle or Bank of America.
Review Loan Terms
Short-term loans have higher payments but are paid off quickly. Long-term loans offer smaller monthly payments but cost more in total interest.
Evaluate Approval Requirements
If you have a low credit score, consider Lendio or OnDeck, which work with businesses with fair credit. If you have strong credit, you can apply for SBA loans or term loans from Bank of America or Funding Circle.
Frequently Asked Questions
Which lender is best for quick funding?
OnDeck and Kabbage offer funding within 24 to 48 hours.
What’s the best option for long-term financing?
SBA loans from SmartBiz or term loans from Funding Circle and Bank of America offer long repayment terms.
Can I qualify if I have bad credit?
Yes, online lenders like OnDeck and Lendio work with businesses with fair or poor credit.
Do all lenders require collateral?
No, unsecured loans from Kabbage and OnDeck don’t require collateral, but secured loans from Bank of America and SBA loans often do.