Business Loan Comparison Tool: Compare Up to 5 Loans & Find the Best Financing
Compare up to 5 business loans side-by-side with our free calculator. The only tool that lets you evaluate multiple financing options at once. Instantly calculate monthly payments, total interest, APR, and total cost. With tariff uncertainty and changing interest rates in 2026, accurate loan comparison is more important than ever.
Loan Options
The 2026 business financing landscape is shifting rapidly. Tariff changes are affecting supply chains and cash flow, while interest rate volatility is making loan comparison more critical than ever. Many businesses are finding themselves in need of emergency financing to navigate these challenges.
How Tariffs Affect Your Business Loan Options:
- • Increased costs: Tariffs on imported goods can squeeze profit margins, making it harder to qualify for traditional loans
- • Cash flow pressure: Higher material costs mean you may need working capital loans to bridge the gap
- • Lender caution: Some lenders are tightening requirements for businesses heavily affected by tariffs
- • Rate increases: Economic uncertainty from tariffs can lead to higher interest rates across the board
Emergency Business Financing Options for 2026:
If you need funding quickly due to tariff impacts or other business challenges, consider these options:
- • Working capital loans: Short-term financing to cover operational expenses during cash flow gaps
- • Business line of credit: Flexible access to funds when you need them, only pay interest on what you use
- • Invoice factoring: Convert outstanding invoices into immediate cash
- • Merchant cash advances: Fast funding based on future credit card sales (higher cost, use carefully)
- • SBA Express loans: Faster SBA approval process for smaller amounts up to $500,000
Use our comparison tool above to evaluate multiple financing options side-by-side. With accurate cost comparison, you can make informed decisions even in uncertain times. Compare up to 5 loans at once to find the best terms for your situation.
Comparing business loans effectively requires looking beyond the advertised interest rate. Our multi-loan comparison tool makes this easy by letting you evaluate up to 5 options simultaneously. Here's how to use it and what to look for.
Step-by-Step Guide to Using Our Comparison Tool:
- Enter loan details: For each loan offer, enter the loan amount, interest rate, term, and any origination fees
- Add multiple loans: Click "Add Loan" to compare up to 5 different offers side-by-side
- Review key metrics: Compare monthly payments, total interest, total cost, and effective APR
- Consider your cash flow: Look at monthly payment amounts to ensure they fit your budget
- Check total cost: The loan with the lowest monthly payment isn't always the cheapest overall
- Factor in fees: Origination fees and other charges can significantly impact total cost
Key Metrics to Compare:
- • APR (Annual Percentage Rate): The true cost of borrowing, including interest and fees
- • Monthly Payment: What you'll pay each month - ensure it fits your cash flow
- • Total Interest: How much you'll pay in interest over the life of the loan
- • Total Cost: Principal plus interest plus fees - the complete picture
- • Loan Term: Longer terms mean lower payments but higher total costs
Beyond the calculator, also consider the lender's reputation, customer service quality, prepayment penalties, and flexibility in repayment terms. These factors can be crucial if your business faces challenges during the loan term.
Different loan types serve different purposes. Understanding the differences helps you choose the right financing for your business needs.
| Loan Type | Best For | Typical Rates | Amount Range |
|---|---|---|---|
| SBA Loans | Established businesses, expansion, real estate | 10-14% APR | $50,000-$5 million |
| Term Loans | Specific purchases, equipment, predictable needs | 6-12% APR (banks), 15-45% (online) | $5,000-$5 million |
| Lines of Credit | Working capital, cash flow gaps, flexible needs | 8-20% APR | $10,000-$500,000 |
| Equipment Loans | Machinery, vehicles, technology purchases | 6-15% APR | $5,000-$5 million |
SBA Loans Explained:
SBA loans are government-backed loans offering competitive rates and longer terms. They require extensive documentation and have longer approval times (often 2-3 months), but they're ideal for established businesses with strong credit seeking larger amounts. The SBA guarantees a portion of the loan, reducing risk for lenders and allowing them to offer better terms.
Term Loans vs Lines of Credit:
Term loans provide a lump sum upfront with fixed monthly payments over a set period. They're best for specific purchases or projects. Lines of credit give you access to funds up to a credit limit, and you only pay interest on what you use. They're ideal for managing cash flow fluctuations or covering unexpected expenses. Use our comparison tool to see how different loan types compare for your specific situation.
Understanding different rate types is crucial for accurate loan comparison. Not all rates are created equal, and the same rate can mean very different costs depending on how it's calculated.
APR vs Interest Rate:
The interest rate is the cost of borrowing the principal amount. APR (Annual Percentage Rate) includes both interest and fees, giving you the true cost of the loan. Always compare APRs, not just interest rates, when evaluating loan offers.
Example: A loan with 8% interest and 2% origination fee might have an APR of 9.5% or higher, depending on the term.
What is a Factor Rate?
Factor rates are used for merchant cash advances and some short-term loans. Instead of an annual percentage, you pay a fixed multiplier (e.g., 1.3x means you pay back $1.30 for every $1.00 borrowed). Factor rates can be deceptive - a 1.3 factor rate on a 6-month loan equals roughly 60% APR.
Tip: Always convert factor rates to APR to compare them with traditional loans.
What Is a Good Business Loan Rate in 2026?
In 2026, good business loan rates vary significantly by loan type and borrower qualifications. SBA 7(a) loans typically range from 10-14% APR, while traditional bank term loans range from 6-12% for well-qualified borrowers. Online business loans generally range from 15-45% APR, reflecting the higher risk and faster approval process. Your specific rate depends on factors including credit score (700+ gets the best rates), time in business (2+ years preferred), annual revenue, and collateral. Always compare multiple offers to ensure you're getting competitive terms for your situation.
How do I compare business loans?
To compare business loans effectively, look beyond the advertised interest rate to the Annual Percentage Rate (APR), which includes both interest and fees. Compare monthly payments, total interest, total cost, and effective APR. Pay attention to origination fees, closing costs, prepayment penalties, and other charges. Use our free comparison tool to evaluate up to 5 loans side-by-side instantly.
What is an SBA loan?
An SBA loan is a government-backed loan offered through the Small Business Administration. These loans offer competitive rates (typically 10-14% APR) and longer terms, but require extensive documentation and have longer approval times (often 2-3 months). They're ideal for established businesses with strong credit seeking larger amounts ($50,000-$5 million) for expansion, equipment, or real estate.
What is a factor rate?
A factor rate is used for merchant cash advances and some short-term loans. Instead of an annual percentage, you pay a fixed multiplier (e.g., 1.3x means you pay back $1.30 for every $1.00 borrowed). Factor rates can be deceptive - a 1.3 factor rate on a 6-month loan equals roughly 60% APR. Always convert factor rates to APR to compare them with traditional loans.
How much can I borrow with a business loan?
The amount you can borrow depends on your business's creditworthiness, revenue, time in business, and the loan type. SBA loans can go up to $5 million, while term loans typically range from $5,000-$5 million. Lines of credit usually range from $10,000-$500,000. Online lenders typically offer smaller amounts ($5,000-$500,000) with faster approval but higher rates.
What are typical interest rates for business loans?
In 2026, business loan rates vary by loan type and borrower qualifications. SBA 7(a) loans typically range from 10-14% APR, traditional bank term loans range from 6-12% for well-qualified borrowers, and online business loans generally range from 15-45% APR. Your specific rate depends on credit score (700+ gets the best rates), time in business, annual revenue, and collateral.
How long is a typical business loan?
Business loan terms vary by loan type. SBA loans typically have terms of 5-25 years depending on the use of funds. Term loans from banks usually range from 1-10 years. Online lenders typically offer shorter terms of 1-5 years. Lines of credit are usually renewable annually. Longer terms mean lower monthly payments but higher total interest costs.
What is the difference between a term loan and a line of credit?
Term loans provide a lump sum upfront with fixed monthly payments over a set period. They're best for specific purchases or projects. Lines of credit give you access to funds up to a credit limit, and you only pay interest on what you use. They're ideal for managing cash flow fluctuations or covering unexpected expenses. Use our comparison tool to see how different loan types compare for your specific situation.
Can I get a business loan with bad credit?
Yes, but options are limited and rates will be higher. Online lenders are more willing to work with businesses with lower credit scores (600+), but you'll pay higher rates (often 20-45% APR). Some lenders focus on revenue and cash flow rather than credit score. You may also need a co-signer or collateral. Improving your credit score before applying can significantly expand your options and lower your rates.
How fast can I get a business loan?
Approval speed varies by loan type. Online lenders can approve and fund loans in 1-3 business days. Traditional bank loans typically take 2-4 weeks. SBA loans take the longest, often 2-3 months. For emergency financing needs, consider working capital loans, lines of credit, or invoice factoring which can provide funds within days.
What is an origination fee?
An origination fee is a one-time charge lenders collect to process and fund your loan. It's typically 1-6% of the loan amount, though some lenders charge a flat fee. Origination fees are usually deducted from the loan proceeds, so if you borrow $100,000 with a 2% origination fee, you'll receive $98,000. Always factor origination fees into your total cost comparison.
How do I calculate a factor rate?
To calculate the APR equivalent of a factor rate, you need to know the loan term. For example, a 1.3 factor rate on a 6-month loan means you pay back $1.30 for every $1.00 borrowed. This equals roughly 60% APR. The formula is complex, but generally, shorter terms mean higher APR equivalents. Always convert factor rates to APR to compare them with traditional loans using our comparison tool.
What is a prepayment penalty?
A prepayment penalty is a fee charged if you pay off your loan early. Some lenders charge this to recoup lost interest. Prepayment penalties can be a percentage of the remaining balance or a fixed amount. Always ask about prepayment penalties before accepting a loan, especially if you plan to pay it off early or expect your cash flow to improve.
How do tariffs affect my business loan options?
Tariffs can affect your business loan options in several ways. Increased costs from tariffs can squeeze profit margins, making it harder to qualify for traditional loans. Higher material costs may require working capital loans to bridge cash flow gaps. Some lenders are tightening requirements for businesses heavily affected by tariffs. Economic uncertainty from tariffs can also lead to higher interest rates. Use our comparison tool to evaluate multiple financing options and find the best terms despite these challenges.
What is emergency business financing?
Emergency business financing includes fast-funding options for urgent cash needs. Options include working capital loans, business lines of credit, invoice factoring, merchant cash advances, and SBA Express loans. These can provide funds within days, but typically come with higher costs. Use our comparison tool to evaluate emergency financing options and understand the true costs before committing.
What should I do if I can't afford my business loan payment?
If you're struggling to make loan payments, contact your lender immediately. Many lenders offer hardship programs, payment deferrals, or loan modifications. You may be able to extend the loan term to lower monthly payments, though this increases total interest. Consider refinancing to a lower rate if your credit has improved. Avoid defaulting if possible, as it can severely damage your credit and business relationships. Early communication with your lender is key to finding a solution.
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