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Small Business Loan Alternatives Beyond Going to the Bank

By Nicolette Norris | December 26, 2022

Small businesses usually struggle to obtain funds to run their operations, purchase raw materials, and machinery, handle payouts, bear miscellaneous expenses, and so on. If you’re running out of capital for your small business but don’t want to go through the hassle of reaching out to traditional financial institutions, some nonbank lenders can help. Read below to learn more about them and also about the most popular non-bank lender amongst borrowers.

Most conventional banks involve lengthy application processes for candidates to obtain loans. However, non-bank lenders don’t even require in-person visits from the applicants, let alone any other scrupulous formalities. 

Increasingly, small business owners now prefer non-bank lenders over conventional banks because they are hassle-free and quick.

Five non-bank lenders to borrow microloans or cash advances for your company

1. Fundbox

Fundbox is an online financial services platform offering credit and short-term loans to small business owners. For entrepreneurs looking to grow their business, requiring funds to overcome cash flow problems, or pay bills, Fundbox can help.

Fundbox does not levy any penalty if you pay off your loan early and there is no origination fee. The application is fairly simple and easily accessible because applicants need to connect their business checking account or their accounting software. Fundbox accesses this information to approve or deny an application within a few minutes.

Once the online approval comes in, non-bank lenders may transfer funds to the business account at the earliest possible time. Nonetheless, a few minimum requirements include:

  • $100,000 in an annual review.
  • Six months in business.
  • A FICO score of 600 and above.
  • Business checking account.

2. Fora Financial

Fora Financial, a direct lender of working capital, offers two products, a small business loan and a merchant cash advance. Loan terms may extend up to a period of 15 months whereas MCA payment terms may vary depending on the business’s revenue. The reason Fora Finacial stands out is because it offers early payment discounts.

Business owners need to fill out a one-page application and upload three months’ worth of credit card statements through the online portal. The approval process may take up to 24 hours and business owners can receive funds within 72 hours.

Take note, companies can’t have open bankruptcies to get funding and must have been in business for a minimum of six months. In addition, companies should either have $5,000 in credit card sales or $12,000 in gross sales.

3. BlueVine

BlueVine is a financial technology company offering banking services such as invoice factoring, lines of credit, and the Small Business Association (SBA) Paycheck Protection Program (PPP) loans.

Revolving lines of credit terms are for 6-12 months, whereas PPP and invoice factoring terms vary. It takes about 5-10 minutes to fill out an application. Businesses can connect their accounting software, business checking account or upload invoices to the online portal. Quick approvals are given in under 24 hours.

Business-to-business (B2B) start-ups with a minimum FICO score of 530, at least three months in business, and $10,000 in monthly revenue can apply for an invoice factoring loan. For lines of credit, monthly revenue of $10,000, minimum FICO score of 600, and six months in business are required.

4. SBG Funding

SBG Funding is a business financing firm offering three loan products, lines of credit, term loans, and equipment loans. Business owners can get same-day funding and there are no prepayment penalties. 

SBG Funding offers longer terms as compared to other non-bank lenders.

  • Lines of credit: six months to twenty-four months.
  • Term loans: six months to five-year terms with payments every two weeks or monthly.
  • Equipment loans: One to ten-year payment terms.

There’s a minimum requirement of $10,000 in monthly revenue, a FICO score of at least 500, and six months in business. There’s an online application and approval process, and business owners need to submit three months of bank statements.

5. Accion

Accion is the only non-profit organization on this list of alternative non-bank financial institutions. It provides microloans through its Opportunity Fund and customizes funding terms to suit individual companies of small business owners.

Additionally, Accion offers coaching and access to support networks and does not charge any prepayment penalties. The online application process for a loan takes about 15 minutes, and business owners need to manually enter revenue and expenses from their tax returns.

These are the minimum requirements for any business and the owner.

  • The business should be in operation for at least twelve months.
  • The owner must own a minimum of 20% of the company.
  • The business should generate at least $50,000 in annual sales.
  • The owner must be at least 18 years of age.

Lendee, the most popular non-bank microlender

Life can often put you in tight spots, especially when you need financial support for your business. Lendee is the right destination for times like these, helping small business owners to secure microloans with just a few clicks.

Whether you need to borrow $50 or $5,000, with Lendee, you get quick access to a network of lenders willing to help you out by providing a loan when you need it the most.  

The main benefits of applying for microloans through Lendee, the best lending platform, are:

  • Those with low credit scores can also get loans.
  • You get loans at competitive rates. Lenders compete to offer you the best loan fee.
  • You set the terms to secure your loan from lenders.
  • You get flexible payback options.


Weigh in on the pros and cons before selecting a non-bank lender from the list shared above to take out a loan for your small business

You can stay ahead of the curve by joining Lendee, your trusted partner for any financial crisis.

Contact Lendee if you have any questions or simply join today to get exciting offers.