Small-business lenders can be traditional financial institutions, such as banks or credit unions, government agencies, nonprofit organizations or online fintech companies. Individual lenders vary in the types of small-business loans they provide, as well as their application processes and eligibility criteria for borrowers. The best small-business lender offers the products you need, has requirements you can meet and charges affordable interest rates and fees.Learn about each of your lender options below, and compare some of the top loan products from NerdWallet’s highest-rated small-business lenders.What is a small-business lender?A small-business lender is a third-party entity that loans your company money under…

Commercial real estate loans help small-business owners buy, renovate or refinance commercial property without having to pay for it all upfront. But commercial mortgages come at a cost, and calculating those costs can be tricky, especially if you’re trying to compare multiple business loan offers. Use our commercial real estate calculator and the instructions that follow to estimate monthly payments, interest costs, balloon payments and more.How to use our commercial real estate loan calculatorStep 1. Enter the loan detailsBalloon payment. Select whether or not your loan has a balloon payment. Balloon payments are common with commercial mortgages. They allow you…

Key takeawaysA prepayment penalty is a fee a lender charges when you pay off a loan before its term ends. It is typically assessed as a percentage of the remaining balance of your loan. You may be able to avoid a prepayment penalty by negotiating with your lender.Paying off your small-business loan early can help free up cash flow for your business, obtain financing for new purchases and save you money. But if your loan has a prepayment penalty, it’s important to run the numbers and consider what it would mean for your business before you commit. What is a prepayment penalty?…

The Federal Trade Commission received more than 330,000 reports of scammers impersonating businesses in 2023.Some of these scammers pretend to be major corporations like Amazon or Best Buy, the FTC says. But small businesses are at risk too, says Scott Taber, a cybersecurity awareness program specialist at the Michigan Small Business Development Center.“There’s always been this idea that small businesses are too small. But we know that’s not true — that cyber criminals specifically target small businesses because of that fact,” Taber says. “Small businesses typically don’t have the same resources as the larger organizations.” You can take steps to…

Getting an SBA loan with bad credit will likely be very challenging, but it may not be impossible. Ultimately, your ability to qualify depends on your credit score, the lender, the type of SBA loan you’re trying to get and a host of other factors.The only SBA loan you’ll likely be able to get with bad credit is an SBA microloan. You can increase your chances of qualifying for other SBA loans in the future by improving your credit score, having good collateral on-hand and writing a strong business plan.Minimum credit score requirements for SBA loansFor SBA loans, you’ll typically…

It is possible to get multiple SBA loans as long as the SBA lender allows it and you don’t exceed the borrowing limits set by the SBA. Having more than one SBA loan can work in certain situations and help you access low-cost financing for your business; however, it can be difficult to qualify for multiple SBA loans, and it’s not right for every situation.How many SBA loans can you have? SBA loans are government-guaranteed small-business loans issued by designated lenders. The SBA itself does not limit the number of SBA loans you can take out, but it does place…

The SBA Working Capital Pilot (WCP) program offers business lines of credit as part of the SBA 7(a) loan program. Although the SBA also offers lines of credit through the CAPLines program, the WCP program is designed to provide greater flexibility and serve a wider range of small-business owners.Like other SBA loans, WCP lines of credit provide large funding amounts, competitive interest rates and long terms. These small-business loans can be a good option for established businesses that want access to working capital.What is the SBA Working Capital Pilot program?The SBA Working Capital Pilot program is an SBA loan program…

Deciding to start a business is exciting, but can also be daunting if you’re a new entrepreneur. Calculating business startup costs, worrying about long-term profitability, securing startup funding — it can all be pretty stressful.The question of costs is critical because the initial investment can be significant. A Kauffman Foundations study shows the average cost to be around $30,000, and costs tend to increase each year.Fortunately, certain types of businesses, such as micro-businesses and home-based companies, have lower financial entry barriers. Here, we’ve put together a list of 14 different types of business startup costs you’ll need to consider when…

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.FEATURED Featured card placement may be affected by compensation agreements with our partners, but these partnerships in no way affect our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.A business plan is a document that explains…

Some people venture into entrepreneurship with a clear vision: They know what industry they want to conquer and the path they’re going to take to get there. However, for many new entrepreneurs, it can be difficult to figure out how to start a business — plus, determine exactly what type of business is the best choice to invest in.To help you launch your journey, we’ve compiled a list of the most profitable businesses, considering factors such as industry growth and competitiveness, startup costs and barriers to entry, as well as profitability potential.FEATURED Featured card placement may be affected by compensation agreements…