A Shortlist of the 9 Best Small Business Banks and Lenders
Many of the best small business banks offer more than just checking and savings accounts. They also provide their customers with a range of financing options that help companies expand, cover their costs, purchase commercial real estate, and more. While that can be handy, entrepreneurs may actually limit their access to external funding by not looking beyond their bank or credit union.
In this article, we look at a shortlist of nine of America’s most respected banks and online funding providers. We’ll give you insights into their available lending, banking, and business service options as well as their performance ratings.
9 Best Small Business Banks and Lenders You Should Consider
Even if you already have a relationship with a bank or credit union for your business checking account or other loans, you may get better rates elsewhere. You also may not qualify for all the financial products you need, which could limit the growth potential of your business.
In that case, the best approach as a small business owner may be to mix and match providers for your banking and lending needs.
We’ve selected nine of America’s top-rated banks and online lenders. We’ve ordered our results based on customer feedback either from Trustpilot or the latest American Customer Satisfaction Index survey so you can see which providers are performing the best.
1. Backd: Best Overall and Best for Fast, Flexible Funding
Backd is not a bank. They don’t offer business bank accounts or credit cards. Rather, they’re one of a new breed of online lenders that work directly with businesses needing access to funding.
Backd offers three main flexible financial products:
Business line of credit: Draw down up to $750,000 of funds as you need them and repay weekly over either six or 12 months.
Working capital advance: Borrow between $10,000 and $2 million with up to 16 months to repay.
B2B Buy Now Pay Later: Give your customers 12 months to repay their invoice while you receive the payment right away.
The two lending products have shorter terms than most traditional financing options where terms may extend up to seven years. This means you pay the facility down quicker. It also means you can easily use the funds for short-term cash flow needs or as a bridge loan.
Plus, you may be able to receive approval if you’re a business with only fair credit — something that could be more difficult with traditional lenders. Backd only requires a minimum FICO Score of 625. You also only need to have been in business for one year for a working capital advance or two years for a business line of credit.
With a focus on providing fast, flexible financing, you can apply online in minutes and will often receive a superfast 24-hour turnaround on approval decisions. Plus, the first-class customer service has led to a 4.9-out-of-5-star rating on Trustpilot from nearly 200 customers.
2. LendingClub: Best for SBA Loans
LendingClub offers access to financing as well as general banking facilities.
The firm provides SBA 7(a) loans, SBA 504 loans, and in-house loans in partnership with the Accion Opportunity Fund. You can borrow between $5,000 and $250,000 over one to five years with no prepayment penalties. All applications are made online.
LendingClub also offers interest-bearing checking accounts, where you can earn an annual percentage yield (APY) of up to 1.50% depending on your account balance.
The company’s personal finance division offers savings accounts, but they currently do not offer business savings accounts.
LendingClub achieved a score of 4.7-out-of-5 stars on Trustpilot.
3. Live Oak Bank: Best for Rural Borrowers
Live Oak Bank’s Oak Express product provides loans of up to $500,000 over 10 years for businesses with an excellent credit history and at least two years in operation. They also provide USDA loans for rural businesses, SBA 7(a) and SBA 504 loans, and commercial loans for larger businesses.
In addition to being a lender, Live Oak Bank is a digital bank that offers business checking accounts and high-yield savings accounts.
You can only apply for financing via the bank’s website and app.
Unlike other banks on our list, Live Oak doesn’t offer business credit cards or access to merchant services facilities.
Live Oak Bank scored 4.4-out-of-5 stars on Trustpilot.
4. Chase: Best for Unsecured Business Loans
Chase offers two different line of credit products both with up to five-year repayment terms. Unsecured small business loans are available with fixed or variable interest rates for up to seven years. Their unsecured lending cap is $500,000, there are no origination fees, and the maximum term is five years. They also provide commercial real estate financing, including SBA loans with up to 90% loan to value (LTV).
In addition, the bank offers 10 different Visa credit card options with annual fees ranging from free to $495, which include a range of perks, like cashback and reward points.
You can apply for a loan or a card online, or schedule a meeting with a business banker at one of its 4,700 branches.
Chase offers a variety of checking accounts for all types of businesses and a variety of savings accounts, some offering relationship interest rates when linked to specific checking accounts.
In the latest American Customer Satisfaction Index 2024 survey, Chase scored 81 out of 100.
5. Bank of America: Best for Standard Business Loans
Bank of America (BofA) offers term loans and credit lines, but you’ll need a personal credit score of 700 or more, two years in business, and at least $100,000 in annual revenues before they’ll consider you.
They have a lower eligibility requirement for their Business Advantage Credit Line Cash Secured product. This is available to companies with six months in business and $50,000 annualized revenue. This is ideal for startups and newer businesses; however, you’ll need a $1,000 refundable security deposit for this option.
You can also choose from one of BoA’s 22 business credit card options. Many come with no annual fee or foreign transaction fees and feature perks including cash back, spending rewards, and air miles.
You can apply for a BoA facility online or at one of its 3,900 branches across the U.S.
Bank of America provides a range of everyday banking solutions for small businesses in addition to its loans and credit lines. For checking accounts, BoA offers company owners two different options that come with features like business debit cards, QuickBooks integration, and Zelle.
Many consider BoA one of the best banks for small businesses because of the wide range of services it offers. They include ACH for larger scheduled payments, merchant services, and payroll services in conjunction with QuickBooks Online Payroll and ADP.
In the latest American Customer Satisfaction Index 2024 survey, BoA scored 81 out of 100.
6. U.S. Bank: Best for Fast-Turnaround Traditional Loans
U.S. Bank offers a fast-turnaround Quick Loan package with interest rates starting from 8.49% as long as you sign up for an auto-pay agreement.
They also offer standard term loans, lines of credit, SBA loans, equipment financing, real estate lending, and specialist lending for medical and veterinary practices. The bank has a robust selection of business credit cards with a variety of benefits from cash back and low interest to reward points and no annual fees.
You can apply online for funding or stop in to see a business advisor at one of its 2,000 branches. They only have a physical presence in 26 of the 50 states, however.
If you’re looking for banking options, U.S. Bank has a range of checking accounts, savings and money market accounts, and access to merchant services accounts and international payment solutions.
In the latest American Customer Satisfaction Index survey, U.S. Bank scored 79 out of 100.
7. PNC Bank: Best for Commercial Vehicle Financing
Via PNC Bank, businesses looking to expand can access a variety of finance options, including secured and unsecured business loans, commercial real estate loans, and vehicle finance loans. Their five business credit cards deliver a range of benefits including initial 0% APR periods, cash back offers, and points programs — and if you’re looking for a low-fee option, none of them charge an annual fee.
PNC takes online applications from borrowers as well as at one of its 2,200 branches.
All three of PNC’s checking options have a minimum opening deposit requirement of $100, and they provide three savings account choices, including an FDIC-insured money market account offering easy access to funds and an MMDA Sweep account designed for companies whose checking account balance is often much higher than their average operating expenses.
For companies wanting to accept credit or debit cards face to face as well as online, PNC provides a range of merchant service solutions, including the equipment needed to process payments in-person.
In the latest American Customer Satisfaction Index survey, PNC scored 79 out of 100.
8. Capital One: Best for Business Credit Cards
As you’d expect from Capital One, they offer a wide range of credit cards you can choose from. There are seven with annual fees ranging from $0 to $395 and featuring benefits like unlimited 2% cash back on purchases or miles and travel rewards.
The bank also provides a range of financing options, but to qualify, you must have been in business for at least two years and hold a Capital One business checking account. They offer SBA 504, SBA 7(a), and SBA Express loans, lines of credit up to $5 million, specialized loans for medical practices, real estate loans up to $5 million, and equipment financing.
You can apply for a card or a finance facility at one of its 750 branches or via its online banking site.
Capital One also offers business checking accounts that come with free overdraft protection, easy cash deposits across multiple locations, and fee-free unlimited transactions when completed digitally. They also have business savings accounts, a merchant account facility, and an online bill pay service where you can settle invoices by virtual card, check, or ACH payment.
In the latest American Customer Satisfaction Index survey, Capital One scored 78 out of 100.
9. Wells Fargo: Best for Specialist Funding
Wells Fargo’s unsecured line of credit provides up to $150,000 for businesses established for two or more years and $50,000 for new businesses. These require a minimum FICO Score of 680.
The bank also provides SBA 7(a) and SBA 504 loans. For businesses in the healthcare sector, Wells Fargo has a specialist division catering to dentists, physicians, veterinarians, and optometrists.
Wells Fargo Signify Business Cash Card has no annual fee, a 0% APR intro for 12 months, and unlimited 2% cashback.
You can apply for a loan or a card at one of the bank’s 4,500 branches or via its website.
Wells Fargo offers a range of checking accounts designed to meet different small business needs. Plus, the bank provides a range of savings accounts, including Business Time Accounts (CD accounts) with higher interest rates and a minimum opening deposit of $2,500.
Companies can also choose the bank’s merchant accounts, which offer next-day settlements as well as their ADP-powered payroll services with AI-powered error detection.
In the latest American Customer Satisfaction Index survey, Wells Fargo scored 77 out of 100.
Choose the Right Lender for Your Business
The range of financial products available for entrepreneurs from America’s best small business banks and online lenders is wide. When choosing the right partners for your small business, you need to think about your financial situation now, what you need today, and what you’ll require in the future to fit around your growth plans.
Traditional financial institutions offer a wide range of services, but they often lack the speed and flexibility of an online lender like Backd. They may not offer the types of lending products that would best suit your business. And because they have much stricter eligibility criteria, your application may be, at best, accepted but at a higher interest rate or, at worst, turned down altogether.
Just like anything you purchase for your business, it pays to shop around and that’s true with banking services and commercial finance as well.
Apply with Backd today and be funded within as little as 24 hours.
