Many people find it hard to grow their business because they don’t have enough money or have lost money before. Maybe you can’t find an investor or don’t have your own money to use. But don’t worry—there is another way to help you. You can take a loan! In this article, we will show you 6 easy ways to get a loan in 2025 to help your business grow.
Fintech lenders
First up, We have Online Business Loan Platforms, or Fintech lenders. These are from companies on the internet, and they are known for being quick. You usually fill out forms online, and you can get an answer(may be Yes or No), and sometimes the money, really fast – maybe even in a day or two. This can be great if you need cash right away. Companies like Kabbage, which is now part of American Express (a big, old company that started way back in 1850 with things like delivering packages!), offer these. Kabbage itself started more recently, in 2009, aiming to give small businesses quick access to funds. Another one is OnDeck, which began around 2007 and was one of the early online lenders for small businesses. They've lent billions of dollars over the years.
So, because these online loans are fast and sometimes easier to get, they can cost you more. The interest rates (the extra money you pay for borrowing) can be higher than at a regular bank. It’s like paying more for a speedy delivery. Also, there are so many online lenders now, it can be confusing to pick the right one, and you really need to make sure they are a good, honest company before you share your business information.
Government Loans
Next are Government Loans. Your government might have special programs to help small businesses borrow money, often with lower interest rates, which is a big plus. In the USA, the Small Business Administration (SBA) helps with this. The SBA doesn't usually lend money directly but promises to pay back part of the loan if you can't, which makes banks more willing to lend. The SBA has been around since 1953, helping millions of small businesses. In the UK, the British Business Bank has programs like Start Up Loans, which have helped tens of thousands of new businesses get going since it was fully set up in 2014.
The problem with government loans is that they can take a long time to get. There's often a lot of paperwork, and the rules can be strict. It’s not a quick fix, and you’ll need a very solid business plan and good financial records. So, about 20% of the challenge here is the waiting and the detailed applications.
Business Credit Cards
Then there are Business Credit Cards. These can be handy for everyday costs, and you get access to money quickly. Some cards, like the Chase Ink Business Preferred (Chase is a very old bank, with roots going back to 1799!) or the American Express Business Gold Card, offer good rewards or even periods where you pay no interest. American Express, as we said, is an old hand at finance.
But here’s a warning before you take your loan here. If you don't pay back what you borrow on these cards quickly, especially after any no-interest deals end, the interest rates can be really high. It’s easy to get into a cycle of debt if you’re not careful. Also, the amount of money you can borrow might not be huge, so it’s not for really big business plans.
Peer-to-Peer (P2P) Loans
What about Peer-to-Peer (P2P) Loans? This is where websites connect businesses that need money with regular people or investors who want to lend it. LendingClub is a well-known P2P platform in the US. It started around 2006 and was one of the first big names in this area, helping both individuals and businesses get loans. Another one, especially in the UK and other countries, is Funding Circle, founded in 2010, which focuses specifically on small business loans and has lent billions globally.
The difficulty here is that you often need to create a really good story for your business to convince people to lend to you. Getting the loan isn't guaranteed, and it might take time to get the full amount you need. Also, the quality and reliability of these platforms can vary, so you need to do your homework on the platform itself.
Microloans and loans from Community Development Financial Institutions (CDFIs)
For very small businesses, or those just starting, Microloans and loans from Community Development Financial Institutions (CDFIs) can be a lifeline. These groups often want to help local or underserved businesses. Accion is a global non-profit that has been helping small businesses with microloans and financial education for decades, starting way back in the 1960s in Latin America and now working in the US too. They focus on people who might not be able to get help from traditional banks.
The downside? "Micro" means small, so the loan amounts are usually not very big. If you need a lot of money, this might not be enough. Also, these organizations can sometimes be harder to find, and you might need to build a relationship with them locally.
Invoice Financing and Revenue-Based Loans
Finally, let's look at Invoice Financing and Revenue-Based Loans. This is where you get cash based on the money customers already owe you (your invoices) or based on your regular sales. PayPal Working Capital is a common one; if you use PayPal for your business sales, they might offer you a loan based on your PayPal sales history. PayPal itself started in the late 1990s and has become huge in online payments. Another type is revenue-based financing, from companies like Clearco (which used to be called Clearbanc, founded in 2015). They give you money, and you pay it back with a percentage of your daily or monthly sales.
The thing to watch for here is that the fees can sometimes be a bit high or work differently than normal interest (they might use something called a "factor rate"). This can make it a bit more expensive than other loans if you don't watch out. It also works best if your business has steady, predictable sales. If your sales go up and down a lot, it might be harder to manage these kinds of loans.
So, when you're looking for a loan, remember to look at the good sides and the downsides. Knowing about real companies and a little of their background can help you feel more confident. Good luck growing your business!