Rebecca Safier is a personal finance writer and certified student loan counselor specializing in consumer loans and money management. Formerly a senior writer for LendingTree, her work has been published in U.S. News & World Report, MarketWatch, NextAdvisor, and other publications. She has also contributed expert commentary to Entrepreneur, Money.com, NBC, and more. When she’s not reporting on all things personal finance, Rebecca teaches blogging and SEO strategies on her website, remotebliss.com.
Rebecca Safier is a personal finance writer and certified student loan counselor specializing in consumer loans and money management. Formerly a senior writer for LendingTree, her work has been published in U.S. News & World Report, MarketWatch, NextAdvisor, and other publications. She has also contributed expert commentary to Entrepreneur, Money.com, NBC, and more. When she’s not reporting on all things personal finance, Rebecca teaches blogging and SEO strategies on her website, remotebliss.com.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it’s buying a car or taking on a loan. He has written for Bloomberg, the Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it’s buying a car or taking on a loan. He has written for Bloomberg, the Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
If you own a clothing store, restaurant or other retail business and are looking to cover expenses, a retail business loan can be a good option. These loans offer financing to cover day-to-day expenses, purchase equipment, rent or buy real estate or pay for any other costs that go into growing your company.
With a wide range of loans available, including SBA loans, term loans, lines of credit, among others, understanding your options before accepting financing can help ensure you get the best funding for your business’s needs.
Best Retail Business Loans of 2023
BEST FOR SHORT-TERM LOANS
OnDeck
Why We Picked It
OnDeck was founded in 2006 and has since been a leading provider in the business lending space, offering both term loans and lines of credit. Today, they have extended $14 billion in funding to small businesses.
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan from $5,000 to $250,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Note: OnDeck does not lend to businesses in Nevada, North Dakota or South Dakota. What’s more, while it lends to over 700 industries, there are some industries it cannot serve.
Pros & Cons
- Term loans from $5,000 to $250,000; lines of credit up to $100,000
- Same-day funding
- Low minimum credit score requirement
- $100,000 minimum annual revenue requirement
- Must have been operating for at least one year
- Does not lend to businesses in Nevada, North Dakota or South Dakota.
Details
Eligibility: Prospective borrowers must have a minimum personal credit score of 625 to qualify for an OnDeck term loan or line of credit. Additionally, their business must have been in operation for at least one year and have annual gross revenue of at least $100,000. Applicants must also have an open business checking account.
Turnaround time: You can apply and receive a decision from OnDeck on the same day. What’s more, approved borrowers also can have their funds in their bank account as early as the day they’re approved.
BEST FOR A LENDER COMPARISON SITE
Lendio
Why We Picked It
Lendio is an online business loan marketplace that connects prospective borrowers with traditional banks and nonbank online lenders. By filling out one application, Lendio is able to connect business owners to over 75 lenders. Over its existence, Lendio has helped small business owners receive over $12 billion in funding nationwide.
Applicants may see Lendio as a one-stop-shop. You can apply for business loans, lines of credit, SBA loans, equipment financing, merchant cash advances (MCAs), commercial mortgages, invoice factoring and business acquisition loans. However, because Lendio is a marketplace and not a lender, it doesn’t publish specific terms. Instead, you’ll have access to its lending partners, and it will help you find the best offer for your specific needs.
Pros & Cons
- One application connects you to more than 75 lenders
- Wide variety of loan products, including term loans, lines of credit and SBA loans
- Some lenders charge prepayment penalties
- Funding times vary depending on specific lender
Details
Eligibility: Minimum credit score requirements vary by loan product. You can qualify for financing with a score as low as 560; however, we recommend scores of at least 680 to receive the most favorable terms. Additionally, your business should have been in operation for at least six months to one year, depending on the type of loan you apply for.
Funding time: Applying through Lendio takes 15 minutes. After you review your offers and are approved by your lender, you can receive your funds in as little as 24 hours.
BEST FOR FAST FUNDING
QuickBridge
APR range
Factor rates start at 1.11
APR range
Factor rates start at 1.11
Why We Picked It
QuickBridge provides small business loans to business owners nationwide. Applying is quick and funding can happen within 24 hours, but you need fair to excellent credit to qualify.
Interest on loans from QuickBridge is expressed as a factor rate. To determine the cost of borrowing, multiply your desired loan amount by the factor rate. For example, if you borrow $30,000 at a factor rate of 1.11, you would owe $33,300 in total with $3,300 in interest.
Pros & Cons
- Flexible loan terms
- Quick application and fast funding deposited to a bank account
- Early payoff discounts
- Origination fee
- Loan interest may be high
- $250,000 minimum annual revenue requirement for small business loans
Details
Eligibility: Business owners need fair to excellent credit to qualify for a QuickBridge loan. On the FICO score scale, fair credit is considered to be at least 580. However, we recommend a score of at least 600.
Additionally, your business must be in operation for at least six months and have a minimum annual revenue of $250,000 to qualify.
Turnaround time: QuickBridge provides as quick as 24 hours.
Best for Lines of Credit
American Express Business Blueprint™
Minimum Credit Score
of at least 660 FICO at the time of application
Minimum Credit Score
of at least 660 FICO at the time of application
Why We Picked It
American Express Business Blueprint™ is best for its American Express® Business Line of Credit (formerly Kabbage from American Express and Kabbage Funding™), which gives business owners the chance to secure funding between $2,000 to $250,000 . Repayment terms include six, 12 or 18 months.
Line of credit customers incur a loan fee for each month they have an outstanding balance. Total monthly fees incurred over the loan term range from 3% to 9% for six-month loans, 6% to 18% for 12-month loans and 9% to 27% for 18-month loans.
In addition to its line of credit, American Express Business Blueprint provides other tools beneficial to small business owners, including its own mobile app that provides comprehensive cash flow insights.
Pros & Cons
- Backed by American Express
- No prepayment penalty
- Monthly fees on unpaid balances
- Requires personal guarantee
Details
Eligibility: To be eligible for financing through American Express Business Blueprint, applicants must have a minimum personal FICO credit score of of at least 660 FICO at the time of application, have started your business at least a year ago and have a valid business checking account. Applicants should have an average monthly revenue of at least $3,000. All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
Funding time: Once you complete your loan application and sign the loan agreement, funds are sent to your verified bank account. Funds can take up to three business days to appear in your account, depending on your bank.
BEST FOR FLEXIBLE LINES OF CREDIT
BlueVine
Why We Picked It
BlueVine is a financial technology company that provides financing solutions to small businesses nationwide. It specifically specializes in business lines of credit and checking accounts. As of December 2021, BlueVine no longer offers invoice factoring as one of its financing methods.
Small business owners looking to access a line of credit on an as-needed basis can receive funds from $6,000 to $250,000 . BlueVine offers two payment structures: Flex 6 or Flex 12. Customers who choose Flex 6 make weekly payments over 26 weeks while Flex 12 customers make monthly payments over 12 months. What’s more, after 45 days of payment on Flex 6, or 90 days of payment on Flex 12, you may be eligible for a credit line increase.
BlueVine also charges weekly or monthly fees for its line of credit. Standard pricing is 1.7% per week or 7% per month for line of credit draws.
Note: BlueVine’s line of credit is available in most U.S. states except North and South Dakota, Puerto Rico and U.S. territories.
Pros & Cons
- Businesses that have been in operation for at least 24 months are eligible
- Lines of credit up to $250,000
- Low credit score requirement
- No mobile app for its line of credit
- Monthly revenue requirement
- Not available to business in North and South Dakota, Puerto Rico and U.S. territories
Details
Eligibility: Eligibility varies on the specific program a business owner chooses.
Flex 6:
- Minimum personal credit score of 625
- Must have been in business for at least 24 months
- $40,000 per month in revenue or $480,000 annually
- Your business must be a corporation or LLC
- No bankruptcies within the last three years
Flex 12:
- Minimum personal credit score of 650
- Must have been in business for at least three years
- $80,000 per month in revenue or $960,000 annually
- Your business must be a corporation or LLC
Turnaround time: After you submit your application, you can receive a decision as quickly as five minutes. If approved, you’ll receive your funds in your bank account within a few hours if you choose its $15 bank wire option. Choose its free ACH transfer option, and you’ll receive your funds within one to three business days.
BEST FOR SMALL- TO MID-SIZED BUSINESSES
National Funding
Why We Picked It
National Funding offers working capital small business loans from $10,000 to $500,000 with terms of four months to two years, paid daily or weekly. Borrowers can use their funds for all working capital needs, including inventory, payroll, marketing, taxes and more. National Funding also offers equipment financing up to $150,000 but applicants must have a minimum personal credit score of 575 to qualify for that financing method.
Unlike most business lenders, National Funding offers early pay-off discounts. Small business loan customers who repay their total remaining balance in full within the first 100 days of the contract will automatically receive a 7% discount off the total remaining balance. Equipment financing customers who repay the total remaining balance early, at any point during the term, will automatically receive a 6% discount off the total remaining balance.
Pros & Cons
- Financing up to $500,000
- Early payoff discounts
- Requires daily or weekly payments
- Potential high borrowing costs
- Requires minimum gross annual sales of $250,000
Details
Eligibility: National Funding recommends a minimum credit score of 600 to qualify for its equipment financing. Your business must also have been in operation for at least six months. National Funding requires minimum gross annual sales of $250,000.
Turnaround time: Most of National Funding’s loans are disbursed within 24 hours of approval. However, this is subject to receipt of required documentation, underwriting guidelines and processing time by your bank.
BEST FOR QUICK APPROVALS
Fundbox
Why We Picked It
Fundbox is an AI-powered business lending platform that speeds up the application, decision-making and funding process. It offers decisions within three minutes and funds as soon as the next business day.
Prospective borrowers have two business financing options through Fundbox. Business owners can apply for revolving business lines of credit up to $150,000 with repayment terms of 12 or 24 weeks. Your available credit goes back up as you repay your line of credit.
Pros & Cons
- Receive a decision within three minutes
- Low minimum credit score requirement
- Next-day funding
- Only short-term repayment terms are available
- Relatively low lines up credit of up to $150,000
Details
Eligibility: Applicants must have a minimum personal credit score of 600 to qualify for financing through Fundbox. The applicant’s business must only be in operation for at least six months, making it a possible option for startups. However, businesses must have at least $100,000 in annual revenue.
Funding time: Whether you’re getting a line of credit, your funds transfer to your bank account as soon as the next business day.
BEST FOR ESTABLISHED BUSINESSES
Funding Circle
Learn More
From participating partners via businessloans.com’s website.
Why We Picked It
Funding Circle has been a direct lender specializing in small business loans since 2010. Since its inception, it has helped 135,000 businesses in 700 industries and lent $20.2 billion globally. We chose Funding Circle because it provides fast, affordable loans with a simple application process and funding in as little as 48 hours. Prospective borrowers have three options: business term loan, line of credit or SBA loan.
Funding Circle term loans range from $25,000 to $500,000 with repayment terms from six months to five years. If you choose to apply for a business line of credit, you can access credit lines between $6,000 and $100,000. However, Funding Circle doesn’t specify its line of credit repayment terms. You can also apply for Funding Circle SBA loans, which range from $25,000 to $500,000 with terms up to 10 years.
There is one main drawback of Funding Circle: there’s a one-time origination fee on each loan ranging from 3.49% to 6.99% of the approved loan amount.
Pros & Cons
- Loans up to $500,000
- Funding in as little as 48 hours
- No minimum annual revenue requirement
- One-time origination fee between 3.49% to 6.99% of the approved loan amount
- Requires two years in business
- Not available for Nevada businesses
Details
Eligibility: The minimum qualifications for a loan through Funding Circle are:
- Two years in business
- Minimum personal credit score of 660
- No personal bankruptcies amongst the business owners within the last seven years
- Not located in Nevada, due to state lending regulations
SBA loans, however, require two years in business, a minimum credit score of 650, a minimum annual revenue of at least $400,000, no current federal tax liens and that your business operates in one of the SBA’s eligible industries.
Turnaround time: Depending on the financing method you apply for, you can receive your funds within two to three days. However, SBA loans may take several weeks due to long underwriting turnaround times, which typically take up to three weeks.
BEST FOR LOAN OPTIONS
Biz2Credit
Why We Picked It
Biz2Credit is a business financing platform that provides three funding options—term, working capital and commercial real estate (CRE) loans—ranging from $25,000 to $500,000. It only takes a few minutes to apply and, depending on the funding type, 24 hours to receive a decision.
can connect business owners with working capital funding from $25,000 to $2 million and term loans between $25,000 to $500,000. Working capital financing is paid back with your business receipts through daily, weekly or bimonthly payments while term loans are repaid through weekly, bimonthly or monthly payments over the course of 12 to 36 months. Biz2Credit also offers interest-only CRE loans from $25,000 to $2 million with terms between 12 and 36 months; payments are due monthly.
In the event that Biz2Credit cannot provide a financial product, it may present third-party options to qualified prospective borrowers. However, Biz2Credit confirms that “in the vast majority of cases, [it] will make a financing decision without referral to any external party.”
Pros & Cons
- Less stringent qualification requirements for working capital funding
- Minimum annual revenue requirement of $100,000 for some loans
- Quick application, approval and funding process
- More stringent qualification requirements for term and CRE loans
- Working capital funding require daily, weekly or bimonthly payments
- CRE loans approvals can take up to 30 days
Details
Eligibility: To qualify for working capital financing, applicants must have a minimum personal credit score of 575, have been operating their business for at least six months and have annual revenue greater than $100,000. Term loans, on the other hand, require a minimum score of 660, 18 months in business and annual revenue greater than $250,000. CRE loans share the same minimum requirements as term loans but also require that prospective borrowers already own commercial property.
Funding time: Business owners can typically apply within four minutes, get a decision as fast as 24 hours and receive funds in 72 hours from approval. However, CRE loan approvals may take up to 30 days.
Summary: Best Retail Business Loans of November 2023
Tips for Comparing Retail Business Loans
As you compare retail business loans, consider these factors to find the loan that best fits the needs of your business:
- Loan type. Most retail business loans are either term loans or lines of credit. With a term loan, you receive the loan funds in a lump sum and repay it in regular installments. Business lines of credit, conversely, allow you to access funds on an as-needed basis, and you’ll only repay what you borrow. Depending on the type of expenses you need to cover, one option may be better than the other.
- Annual percentage rate (APR) and fees. As you shop for loans, compare APRs, which include both interest rates and fees, to find the lowest cost option. Comparing any additional fees, like prepayment penalties or late payment fees, can also show which loan is best.
- Repayment terms and schedule. Check how long you have to repay the loan and whether you’ll need to make payments on a weekly or monthly schedule. Your repayment schedule will directly impact your payment amount, as well as your long-term interest charges. A business loan calculator can help you understand how loan terms can change your cost of borrowing.
- Customer support options. A helpful and accessible customer support team can make a difference to your overall borrowing experience. Consider the lender’s support options and reviews from other borrowers. You can also explore whether the lender offers any flexibility if you have difficulty repaying your loan.
What Are Retail Business Loans?
Retail business loans offer financing for retail businesses, but they can vary in how and when you get funding, as well as how they’re repaid. Here are a few types of financing you might encounter:
- Term loan. These loans are dispersed in a lump sum and repaid in regular installments, typically monthly, over a predetermined term. You can find small business term loans from banks and online lenders, with terms ranging from a few months to several years.
- SBA 7(a) loan. Guaranteed by the SBA, SBA 7(a) loans come with competitive interest rates and generous repayment terms. You’ll need strong credit and revenue to qualify, and the application process can be lengthy.
- SBA 504/CDC loan. Also guaranteed by the SBA, 504/CDC offers up to $5 million to invest in fixed assets, such as real estate.
- SBA microloan. The SBA also backs microloans up to $50,000 that you can use to finance working capital, inventory, equipment and supplies.
- Business line of credit. A business line of credit lets you withdraw money as you need it, and you’ll only repay what you borrowed. This can be a good fit if you need to manage cash flow issues.
- Equipment financing. Equipment financing offers funds to purchase machinery or other equipment. The loan is secured by the equipment being purchased. Loan amounts can reach up to $50 million.
How Do Retail Business Loans Work?
Retail business loans provide money to keep your retail business afloat and thriving. After borrowing your loan or drawing from your line of credit, you’ll repay the amount on a weekly or monthly basis, along with interest charges and any fees.
You can find loans with terms as short as six months or as long as 25 years. SBA microloans offer small-amount loans up to $50,000, whereas SBA 7(a) and CDC/504 loans provide up to $5 million. Banks and online lenders may offer maximum amounts that fall somewhere in between.
Before borrowing, consider using a business loan calculator to estimate your borrowing costs. Let’s say, for example, that you borrow a retail business loan for $100,000 with a 10% interest rate and a five-year repayment term. Assuming a fixed rate, you’d make monthly payments of $2,125 and pay $27,482 in interest overall.
Choosing a shorter term could save you money on interest, but you’ll have higher payments from month to month. Conversely, a longer term means more affordable monthly bills, but you’ll pay more interest over the life of your loan.
How To Get a Retail Business Loan
While specific application processes vary by lender, you’ll often take these steps to get a business loan for a retail store:
- Consider your financing needs. Compare the various types of retail business loans and lines of credit to determine which type would be the best fit for your financial goals. Estimate how much you need to borrow, too, as this will help you narrow down your list of lenders.
- Review your credit. Although you’re borrowing a loan for your retail business, lenders often look at your personal credit and business credit when evaluating your application. You’ll typically need a personal score of 670 or higher to qualify for an SBA or bank loan. Alternative forms of financing, such as secured loans, equipment financing and inventory financing may have lower requirements.
- Prequalify for multiple loans. Some lenders let you prequalify for a retail business loan, allowing you to see the rates you could be offered without impacting your credit score. Consider offers from various types of lenders, including banks, credit unions and online loan providers.
- Gather the required documentation. Depending on the lender, you may need to provide a business plan, personal and business bank statements, tax returns, business licenses and, if applicable, details about your collateral. The lender may also want a detailed description of how you plan to use the loan funds.
- Submit your application. Your final step is to fill out and submit a formal loan application. You’ll provide your personal and business details, as well as upload any verifying documentation that the lender requests. If you have questions during the process, reach out to the lender’s customer support team for guidance.
How To Qualify For a Retail Business Loan
The rates and terms you get on a loan will largely depend on your and your business’s financial profile, including your credit score, revenue and time in business. Here are some common requirements to qualify for a retail business loan:
- Minimum credit score. Some lenders may accept poor or fair credit, but you’ll need a good score of at least 670 to qualify for a competitive rate.
- Business revenue. Most lenders require a minimum annual revenue of $100,000 to qualify for a small business loan.
- Time in business. Many lenders set a time in business requirement of at least six months to qualify for a loan. Others require one to two years in business.
- Business checking account. You may need to show that your business has a checking account with regular cash flow and transactions.
- Documentation. Most lenders will require a wide range of documentation to qualify for a loan, including business bank statements, tax returns, licenses, permits and proof of business registration.
Methodology
We reviewed 25 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the nine best lenders based on the weighting assigned to each category:
- Loan cost. 35%
- Loan details. 25%
- Customer experience. 20%
- Eligibility and accessibility. 10%
- Application process. 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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