Best Personal Loans for Business

The Small Business Administration (SBA) guaranteed more than 84,000 loans in the 2025 fiscal year — but where do you turn if you don't qualify for a government-backed loan? One alternative is a personal loan for business from an online lender.

This article covers the best personal loans for business, how you can get one, and when another funding source is a better option.

Compare personal loan rates for business

Best personal loans for business

The best personal loans for business offer large loan amounts, competitive interest rates, and fast funding. The lenders below all offer personal loans for business, but note that you'll need to apply directly on Upgrade's website to get a business loan.

Can you use a personal loan for business?

Some lenders allow personal loan funds to be used for business purposes, but many don’t. You might consider this route if you need capital but can’t qualify for a traditional business loan.

Fortunately, personal loans may be easier to qualify for than business loans. You don’t need to provide details about your business to get a personal loan, and you don’t need to generate a specific amount of revenue or have a business credit score to qualify. If your business is still new — or if you’re looking for funds to get your business off the ground — a personal loan might be a good fit.

To find a personal loan to use for business expenses, look for lenders with no restrictions on business use.

Why get a personal loan for business expenses?

Personal loans shouldn’t be your first choice for funding business expenses, but they offer advantages that other methods of financing don't. 

For example, suppose you need to buy new inventory-tracking software but you don't have enough cash to pay the entire cost upfront. Instead of using a business credit card, you could take out a personal loan. Average personal loan interest rates tend to be much lower than average credit card rates, especially if you have good or excellent credit. The average interest rate on a two-year personal loan was 11.14% compared to an average credit card interest rate of 21.39%, according to Federal Reserve data.

A personal loan could also come in handy if you run a startup business that hasn't been operating long enough to establish business credit or doesn't qualify for an SBA loan. By using a personal loans marketplace, you can compare quotes online, complete an application in minutes, and — depending on the lender — receive the funds as soon as the same day.

How to get a personal loan for business

The process of getting a personal loan for business is the same as getting a personal loan for any other use. And because a personal loan application doesn’t take your business details into account, it’s generally easier than applying for a business loan. Here’s how it works:

1. Compare lenders: Research and compare various lenders to find a loan that works for you. Consider APRs, fees, repayment terms, and loan amounts.
2. Prequalify: Prequalifying can give you an estimate of the rates, amounts, and terms you may be eligible for. Get prequalified when possible to make comparison shopping easier, but remember it is not an offer of credit, and your final rate could differ. Prequalifying won’t affect your credit, but proceeding to apply for a loan will.
3. Choose a loan and apply: Once you settle on a lender, apply for the loan. Many lenders have an online application. You’ll likely need to provide your ID, proof of address, proof of income, and more. Check with the lender for specific application requirements. It is at this point that the lender will conduct a hard credit pull, which can lower your score by a few points for up to a year.
4. Get your funds: If the lender approves your loan, you’ll receive a loan agreement to sign. Once you sign, you’ll get your funds. Depending on the lender and how it disburses your loan, you could get money within a day.

Learn More: How To Get a Personal Loan

How to compare lenders

Prequalify first to get a sense of your personal loan options. Then, compare loan quotes based on the following:

• APR: The annual percentage rate indicates how much you’ll pay for your loan, expressed as a percentage of the total loan amount. It’s similar to the interest rate, but also accounts for any upfront fees, like an administrative or origination fee. The lower the APR, the better.
• Fees: There are several types of fees associated with personal loans, though they vary widely by lender. Common fees include origination fees, which are typically subtracted from your loan funds before you receive them, and late fees.
• Loan amount: Your business needs will determine the size of the loan you apply for, while your ability to make payments, in part, will determine how much you qualify for. While personal loans are often capped at around $50,000, certain lenders offer higher amounts.
• Repayment terms: A loan’s repayment term is the amount of time you have to repay it. This has a direct impact on the size of your monthly payments, which impacts the loan amount you qualify for. Longer terms generally have smaller monthly payments, but you’ll pay more in interest over time. Shorter terms are likely to come with higher monthly payments, but you could save on interest.
• Funding time: Certain lenders offer same-day or next-day funding once your application is approved, while others may take up to a week to fund your loan. If your business needs are urgent, choose a lender that offers fast funding.

Learn More: APR vs. Interest Rate on a Personal Loan

SBA loans vs. personal loans

An SBA loan is a type of business loan guaranteed by the Small Business Administration. Because the SBA backs these loans, they’re less risky for lenders. They also have more guidelines regarding how you can use them. Below, we compare different aspects of SBA and personal loans.

Pros and cons of using a personal loan for business

Alternatives to a personal loan for business

While a personal loan can help you get needed business capital, there are sometimes better options. Average personal loan rates, while lower than credit cards, are typically higher than SBA loan rates (which should be your first choice for business financing). Business loans secured by equipment or inventory can have much lower rates as well — which could make a big difference to your bottom line.

Consider the following alternatives to using a personal loan for business:

• SBA loans: SBA loans are business loans backed by the Small Business Administration. You can get them from a wide range of lenders, but your business has to meet certain eligibility requirements to qualify.
• Business lines of credit: Like a personal line of credit, a business line of credit gives you access to revolving credit, so you only borrow what you need.
• Business credit cards: A business credit card is similar to a personal credit card — it’s a revolving source of credit, and you pay interest on the unpaid balance. Business credit cards often have added perks and rewards, like points for travel and dining. But interest expenses can accrue rapidly if you keep a balance on the card.
• Inventory loan or line of credit: If you need funds to purchase new inventory, an inventory loan is a creative way to do it. Offered by banks, the new inventory serves as collateral for the loan, often netting you a lower rate than unsecured options.
• Equipment loan or leasing: If your business needs new or upgraded equipment, you could choose to finance it by securing the new loan to the new equipment, or to lease the equipment instead. Both options have their advantages, and both often have lower costs than most personal loans or business credit cards and lines of credit. 
• Grants: Grants are a great way to fund your business because, unlike loans, you don’t have to repay them. The trick is finding grants you and your business are eligible for. The federal government, state governments, and private companies all offer grants for small businesses. Resources like Grants.gov, the U.S. Economic Development Administration, and the Small Business Development Centers can help.

Methodology

Credible evaluated 32 lenders across 1,216 data points to find the best personal loans for business. We chose the best lenders based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible’s team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders’ statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it’s accurate at the time of publication. 

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.