Whether you’re looking to launch a new product, expand or purchase inventory, a small business loan online is an option to consider. These financing options work similarly to personal loans: you apply, get approved and then pay back the amount borrowed plus interest over a specific period of time.

Some lenders may require borrowers to provide collateral or personal assets like real estate or business equipment in order to take out a loan. Other requirements may include a detailed business plan, income statements, financial reports and more. The minimum credit score required varies by lender.

Many large banks and credit unions offer small business loan programs. They typically have long application processes and strict eligibility criteria. They also tend to have higher interest rates than some other funding sources.

Small-business loan marketplaces like Funding Circle connect borrowers with lenders who provide financing solutions including working capital, term loans and lines of credit. Their streamlined applications and flexible terms make them a great choice for entrepreneurs who want to avoid long application processes.

Alternative business loan providers like Uncapped and Reliant Funding offer short-term financing options based on a company’s revenue. They use a formula called a factor rate to calculate how much you’ll owe on the money you borrow. Factor rates are simpler than interest rates and can be easier to understand. They’re best suited for companies that need to finance a specific project or need cash on hand quickly. small business loan online