Access to extra capital is a vital factor for business growth. While corporate banks have been the traditional option, private credit lenders have become more popular in recent years because of their customized solutions that are tailored to your business.
In this article, we’ll take a look at the top banks for small businesses, private lending options, and what each one offers to you.
Small business bank and lender comparison chart
If you’re looking for a term loan or line of credit for your business, you have a lot of factors to consider. We put together this list of small business-friendly banks and private lending options to help you make an informed decision that works for you and your company.
| Source | Type | Best for | Financing options |
| National Business Capital | Private credit lender | Fast access to capital with expert business advisor guidance | • Term loans • Business lines of credit • SBA loans • Cash flow financing • Equipment financing • Asset-based lending |
| Fundera | Private credit lender | Basic, limited lending needs | • SBA loans • Business lines of credit • Term loans • Startup loans • Equipment financing • Invoice financing |
| Bank of America | Bank | Companies that can wait for potentially longer funding times | • Term loans • Unsecured and secured business lines of credit |
| Wells Fargo | Bank | Businesses with the resources to handle complex lending requirements | • SBA loans • Unsecured and secured business lines of credit |
| OnDeck | Private credit lender | Easier qualification requirements | • Business lines of credit • Term loans |
| American Express Business Blueprint | Bank | Online resources and apps | • Term loans • Business lines of credit • Business credit cards |
| Bluevine | Private credit lender | Free high-yield banking accounts | • Business lines of credit • Term loans (through lending partners) • SBA loans (through Fundera) |
| U.S. Bank | Bank | Business credit cards | • Business lines of credit • Term loans • SBA loans • Equipment financing • Medical practice financing • Business credit cards |
| Regions Bank | Bank | Personalized service | • Term loans • Business lines of credit • SBA loans • Equipment financing and leasing • Business credit cards |
| Rapid Finance | Private Credit Lender | Lower credit scores | • Term loans • Cash advances • Business lines of credit • Bridge, SBA, and asset-based loans • Invoice factoring |
Top banks and lenders for small businesses
After researching some of the best small business banking options in the country, we’ve put together this list of our recommended options. Not all banks are created equal – in fact, many set strict limits on loans for small businesses.
According to a 2024 report on lending from the Federal Deposit Insurance Corporation (FDIC), only around half of the nation’s banks make larger small business loans above $1 million. If you need lots of capital to achieve a realistic growth timeline or meet another financial goal, make sure you seek out a flexible lender who can readily partner with you to achieve it.
1. National Business Capital
| Best for | Businesses that want multiple offers to choose from |
| Financing options | Term loans, lines of credit, cash flow financing, equipment financing, asset-based lending, SBA loans, and more |
| Pros | • Diverse financing options • No minimum FICO • Funding is available on any timeline |
| Cons | • Need at least one year in business • Must have at least $500,000 in annual revenue |
National Business Capital is a private credit lender that offers a wide range of business financing options, including term loans, business lines of credit, cash flow financing, and more. With its team of expert business advisors, National Business Capital can help you secure funding that closely matches your business needs.
2. Fundera
| Best for | Basic, limited lending needs |
| Financing options | SBA loans, business line of credit, term and startup loans, equipment and invoice financing |
| Pros | • Wide range of financing options • Service is free of charge • Quick funding turnaround |
| Cons | • Potentially higher interest rates • Limited access to actual lenders • Fewer options than NBC |
Owned and operated by NerdWallet, Fundera offers a network of private lenders. Fundera offers funding solutions like SBA loans, a small business line of credit, term loans, invoice financing, equipment financing, and more.
3. Bank of America
| Best for | Businesses with the resources to handle complex lending requirements |
| Financing options | Term loans, unsecured and secured business lines of credit |
| Pros | • No monthly fees for a year • Preferred Rewards for Business program offers perks |
| Cons | • Collateral requirements • Deposit relationship often required • Credit score minimum of 700 • Must be in business for 2 years for unsecured credit lines and business loans |
Bank of America (BOA) is a traditional financial institution offering a variety of personal and business loan options. The bank offers an installment or revolving loan, with both an unsecured and secured line of credit and an unsecured term loan that comes in one lump sum. BOA also rewards continued relationships and business credit card purchases through its Preferred Rewards for Business program, making it a great option for bankable businesses that want to stick with a large bank.
4. Wells Fargo
| Best for | Companies that can wait for potentially longer funding times |
| Financing options | SBA loans, unsecured and secured business lines of credit |
| Pros | • Lines of credit available between $5,000 and $500,000 • Low interest rates • SBA-preferred lender |
| Cons | • No free checking option • Additional fees can add up |
Wells Fargo offers credit lines and loans for small businesses. The bank is located in 36 states and Washington, D.C. This makes it a solid option for businesses located near one of its brick-and-mortar locations. Wells Fargo is an SBA-preferred lender that offers two options for lines of credit – one unsecured and the other secured.
5. OnDeck
| Best for | Easier qualification requirements |
| Financing options | Business line of credit, term loans |
| Pros | • Business loan options between $5,000 and $250,000 • No hard credit inquiry • Credit score requirement of only 625 |
| Cons | • he only term loan option is 24 months • Term loans must be paid daily or weekly |
OnDeck is an online small business lender that is part of the publicly traded company Enova International, Inc. The lender has financed $15 billion to more than 150,000 small businesses since 2006. On Deck offers both revolving lines of credit and term loans.
6. American Express Business Blueprint
| Best for | Online resources and apps |
| Financing options | Term loans, business lines of credit, business credit cards |
| Pros | • Lines of credit up to $250,000 • Only need $3,000 monthly revenue to qualify • Offers online resources and app features |
| Cons | • No unsecured financing options • 660 FICO score minimum • Limited financing options |
Formerly Kabbage, American Express Business Blueprint provides both financing options and online resources to help small business owners acquire capital and track their income and spending. The company’s online dashboard provides a personalized snapshot of the business’s Amex business products and linked external accounts.
7. Bluevine
| Best for | Free high-yield banking accounts |
| Financing options | Business lines of credit, term loans (through lending partners), SBA loans (through Fundera) |
| Pros | • Instant access to funding with a Bluevine business checking account • Lines of credit up to $250,000 • Between 1.5% and 3.7% interest earned on account balances |
| Cons | • Term loans are only available through the lender network • No brick-and-mortar options |
Bluevine offers its own line of credit as well as term loans provided through its lender network. The company offers free high-yield checking accounts and business credit cards, and partners with Fundera to provide SBA loans.
8. U.S. Bank
| Best for | Business credit cards |
| Financing options | Business lines of credit, term loans, SBA loans, equipment financing, medical practice financing, business credit cards |
| Pros | • More than 160 years of banking experience • Quick loans up to $250,000 • Many business credit card options |
| Cons | • Interest rates are not easily available online • Only operates in 27 states |
In operation since 1863, U.S. Bank is a traditional brick-and-mortar bank that offers personal banking services and a range of business loan choices, including a suite of business credit cards.
9. Regions Bank
| Best for | Personalized service |
| Financing options | Term loans, business lines of credit, SBA loans, equipment financing and leasing, business credit cards |
| Pros | • SBA-preferred lender with many SBA options • Regional bank with more personalized service • Fast funding typically |
| Cons | • Only operates in 15 states • Limited information is available online compared to competitors |
Regions Bank is just that – a regional bank that operates in 15 states across the South, Midwest, and Texas. The company is a member of the S&P 500 and provides a good range of financing services to small businesses.
10. Rapid Finance
| Best for | Lower credit scores |
| Financing options | Term loans, cash advances, business line of credit, bridge loans, SBA loans, asset-based loans, invoice factoring |
| Pros | • Funding available in less than a day • Works with businesses with lower credit scores • Loans up to $1 million |
| Cons | • Interest rate information is difficult to find online • Automatic payments |
Rapid Finance is a private online lender that offers a variety of financing solutions to small businesses. The company often works with business owners with riskier credit scores, as low as 550. Rapid Finance offers small business loans, lines of credit, merchant cash advances, bridge loans, invoice factoring, and more.
How to choose a bank for your small business
Choosing a financing option for your small business is an incredibly important decision. Not only that, but building relationships with lenders who offer financing will help provide more opportunities to access capital, even when the economy takes a turn.
Here are a few factors to consider when making this decision:
- Brick-and-mortar or online? This is all based on your personal preference. Some lenders are online only, while traditional lenders come in the form of larger corporate banks with physical locations across the country.
- Know your credit. Your business credit score can greatly affect the amount of loan you’re eligible for, and even if you’re eligible at all.
- Consider SBA-preferred lenders. SBA lenders are backed by the government and allow for longer repayment terms, better interest rates, and more flexible loan options. They also offer larger financing amounts, such as a $5 million loan or more, but remember that their funding processes are slow.
- What services do you need? In addition to capital, are you interested in business checking accounts, credit cards, or other more advanced financing options?
- Cost. Some banks and lenders have higher fees than others. Additionally, many lenders are less concerned about fitting the rigid mold of a traditional bank. With so many variables at play, be sure to read the fine print and know what you’re getting into before agreeing to a loan.
Get capital for your small business with National Business Capital
The bottom line is that National Business Capital is a proven and successful small business lender that has decades of experience helping companies grow. Whether it’s a term loan, line of credit, cash flow financing, or another financing option, National Business Capital has you covered. Business banking services aren’t available, however – National Business Capital is all about helping you access capital.
National Business Capital’s expert business advisors are ready to help you find the financing option that best fits your company’s plan for growth. Apply online using our digital application to get started, and our expert business advisors will provide the support and guide you through the entire process.
Frequently asked questions
There are benefits to doing business with multiple banks. Your business might benefit from having income management and financing options not all focused on the same source.
When deciding what is the best bank for small business, you have a lot of great options. Some offer longer-term loans, higher financing amounts, and more restrictive eligibility qualifications. You might also consider a private credit lender to find the funding that fits your needs the best.
Private lenders typically offer better financing options, quicker funding, and more flexibility than traditional banks.
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