Business Loan Types Comparison: Find Your Best Fit
Not all business loans are created equal. Here's a comprehensive comparison to help you choose the right financing for your needs.
Sarah Johnson, MBA
Small Business Finance Expert
Updated February 2, 2026 • 12 min read
Complete Loan Comparison Chart
| Loan Type | Amount | APR | Term | Speed | Credit | Best For |
|---|---|---|---|---|---|---|
| SBA 7(a) | Up to $5M | 6-10% | 10-25 yrs | 30-90 days | 680+ | Large projects, real estate, acquisitions |
| SBA Microloan | Up to $50K | 8-13% | Up to 6 yrs | 2-4 weeks | None | Startups, small needs |
| Bank Term Loan | $25K-$5M | 6-12% | 1-10 yrs | 2-8 weeks | 700+ | Expansion, equipment, working capital |
| Online Term Loan | $5K-$500K | 10-50% | 3 mo-5 yrs | 1-3 days | 600+ | Quick funding needs |
| Business Line of Credit | $10K-$500K | 10-35% | Revolving | 1-7 days | 630+ | Cash flow management |
| Equipment Financing | $5K-$5M | 5-30% | 1-7 yrs | 3-7 days | 600+ | Machinery, vehicles, tech |
| Invoice Factoring | 80-90% of invoice | 10-60% | Per invoice | 24-48 hrs | Any | B2B with slow-paying customers |
| Merchant Cash Advance | $5K-$500K | 40-150%+ | 3-18 mo | 24-48 hrs | 500+ | Emergency, bad credit |
Choosing the Right Loan Type
Choose SBA Loans If...
- • You need lowest rates possible
- • You can wait 30-90 days for funding
- • You have 2+ years in business
- • You need $150K+ and long terms
Choose Online Loans If...
- • You need funding within days
- • Your credit isn't perfect
- • You need a smaller amount ($50-200K)
- • You can handle higher rates
Choose Line of Credit If...
- • You need ongoing access to funds
- • Your cash flow is unpredictable
- • You only want to pay for what you use
- • You have seasonal business cycles
Choose Equipment Finance If...
- • You're buying specific equipment
- • You're a newer business
- • You don't have other collateral
- • You want the equipment to secure the loan