A landscaping company owner in Fort Worth called three banks over two weeks. Chase said his revenue was too thin. Wells Fargo wanted two more years of tax history. A regional bank said they don't do loans under $250K. Three applications. Three denials. Three hard credit pulls.
Then he submitted one application through a lending marketplace. 48 hours later, he had four offers on his desk — a $125K term loan, a $100K line of credit, an SBA pre-qualification, and a $75K working capital advance. He picked the term loan at 12.4% and was funded by Friday.
Same business. Same financials. Completely different result. The difference wasn't him — it was where he applied.
The 5 Places to Get a Small Business Loan
Not every lender is built for every borrower. Here's how the five main sources actually stack up.
1. Traditional Banks
Banks offer the lowest rates. That's the good news. The bad news — they reject roughly 80% of small business applications. They want 700+ credit scores, 3+ years in business, spotless financials, and collateral. If you check every box, great. Most people don't.
2. Credit Unions
Credit unions are relationship lenders. If you've been a member for years and your business banks there, you'll get a warmer reception than at Chase. But their product range is limited. Don't expect SBA loans or equipment-specific financing from most credit unions.
3. SBA Lenders
SBA loans are the best terms you'll find anywhere — rates around prime + 2-3%, terms up to 25 years, and low down payments. The catch is speed. You're looking at 30 to 90 days from application to funding. If you can wait, always check SBA first. If you need money this month, keep reading.
4. Online Lenders
Online lenders fill the gap banks leave open. They'll fund borrowers with 550+ credit scores, 6+ months in business, and $10K+ monthly revenue. You'll pay more — rates from 15% to 45% — but you'll get funded in 1 to 5 days. For working capital needs where speed matters more than rate, online lenders are legitimate.
5. Lending Marketplaces
This is where it gets interesting. A marketplace like Basecamp puts your single application in front of 70+ lenders who compete for your business. You're not picking one lender and hoping — you're letting lenders come to you. One application, multiple offers, you pick the best one.
If you're wondering where you'd fall, our qualification estimator gives you a read in 60 seconds — no credit pull.
How They Actually Compare
| Source | Approval Speed | Min. Credit Score | Typical Rates | Loan Amounts | Best For |
|---|---|---|---|---|---|
| Traditional Bank | 2--6 weeks | 700+ | 7--12% | $250K--$5M | Strong-credit borrowers with time |
| Credit Union | 1--4 weeks | 660+ | 8--13% | $25K--$500K | Existing members, smaller loans |
| SBA Lender | 30--90 days | 680+ | 10.5--13.5% | $50K--$5M | Lowest long-term cost |
| Online Lender | 1--5 days | 550+ | 15--45% | $10K--$500K | Speed, flexible requirements |
| Lending Marketplace | 1--5 days | 500+ | 8--40% | $10K--$5M | Best rate for your profile |
Look at that rate range on the marketplace row. It's wide because you're accessing every type of lender through one application. A 720-credit borrower might get a 10% term loan. A 560-credit borrower might get a 30% revenue-based advance. Both found their best option without calling 10 places.
See what 70+ lenders will offer your business.
See What You Qualify For →Bobby's Take: Stop Shopping One at a Time
Stop calling banks one by one. That's like shopping for a car by visiting one dealership and paying sticker price. You'd never do that. So why do it with a loan that costs tens of thousands in interest?
Every time you apply to a single lender, they pull your credit. Three applications, three pulls. Your score drops 15-20 points before you even get an offer. A marketplace does one soft pull and matches you across the entire network.
I've watched business owners spend six weeks getting rejected by three banks, then get funded in 48 hours through our network. Not because the banks were wrong — they just weren't the right fit. Different lenders have different appetites.
The MCA Trap: Know the Real Cost
Merchant cash advances aren't loans. They're purchases of your future revenue, and they're expensive. Here's the math most MCA companies won't show you.
A $50,000 MCA at a 1.35 factor rate means you pay back $67,500. Sounds like 35% interest, right? Wrong. If you pay it back in 6 months through daily withdrawals, the effective APR is over 80%. If you pay it back in 4 months, it's over 120%.
Compare that to a $50,000 working capital loan at 18% APR with monthly payments over 18 months. Total repayment: roughly $58,400. That's $9,100 less than the MCA — and you keep your daily cash flow intact.
MCAs have their place. If you've been declined everywhere else and you need money tomorrow, fine. But exhaust every other option first, including equipment financing if the funds are for a specific asset.
Here's What Most People Get Wrong
They apply to one bank, get denied, and assume they don't qualify for anything. That's like getting rejected by Harvard and deciding you can't go to college.
The bank that rejected you has specific lending criteria. Maybe they don't do your industry. Maybe your revenue is $20K below their floor. Maybe they had a bad quarter in your sector and tightened their standards. None of that means you're unfundable.
A different lender — one that specializes in your industry or works with your credit profile — might approve you the same day. I've seen it happen hundreds of times. A restaurant owner denied by Bank of America gets $150K through an SBA-preferred lender. A contractor told "no" by his credit union gets equipment financing at 9.8% from a specialty lender.
The problem isn't you. It's applying to the wrong place. If you read our SBA loans explained guide, you'll see how different lender types serve completely different borrowers.
How to Actually Compare Loan Offers
When you have multiple offers, compare these four numbers:
- Total cost of capital — not the rate, the total dollars you pay back minus what you borrowed
- Monthly payment — can your cash flow handle it without stress?
- Term length — shorter terms cost less total but hit harder monthly
- Prepayment penalties — some lenders charge you for paying early
Don't get distracted by approval amounts. A $200K offer at 35% is worse than a $150K offer at 14% in almost every scenario.
Frequently Asked Questions
Where's the easiest place to get a small business loan?
Online lenders and lending marketplaces have the lowest barriers. If you have 6+ months in business, $10K+ monthly revenue, and a 550+ credit score, you'll likely qualify for at least one product. A marketplace gives you multiple options from a single application.
Can I get a business loan with a 600 credit score?
Yes. A 600 score qualifies you for working capital loans, equipment financing, and revenue-based financing from online lenders. You won't get SBA or bank rates, but you'll have real options in the 15-30% range depending on your revenue.
How many lenders should I compare before choosing?
At least three. That's the minimum to know you're getting a fair rate. A lending marketplace handles this automatically — one application reaches 70+ lenders, and you compare the offers that come back.
