What are your options for a business loan under $50,000?
More than for larger amounts. Online term loans, lines of credit, equipment financing and the SBA's microloan program all work at this size. Just over half of the funding applications we see are for $50,000 or less, and at this size which product you use matters as much as whether you qualify.
What applicants asking for $50,000 or less report
Based on more than 1,000 funding applications to TopFunders.ai, here is the profile of applicants asking for $50,000 or less:
| Applicants asking for $50,000 or less | Share |
|---|---|
| Borrowing to expand the business | 38.2% |
| Borrowing to buy equipment | 28.4% |
| Report monthly revenue under $10,000 | 61.3% |
| Place their credit under 600 | 48.1% |
| In business a year or more | 59.2% |
Expansion leads here more clearly than in any other group we looked at. Smaller requests also come from smaller businesses: 61.3% report under $10,000 a month, against 44.9% of applicants asking for more than $50,000.
Which options fit a request this size
Online term loans. A lump sum repaid on a fixed schedule. Many online lenders work with scores from around 600 and typically run 15% to 45% APR. They move fastest of the mainstream options.
Business lines of credit. Draw what you need, repay, draw again. Useful when the need is uneven rather than one purchase.
Equipment financing. If the money buys an asset, the asset secures the loan. It typically prices below unsecured options and is often easier to qualify for.
The SBA microloan program. Per the SBA, microloans go up to $50,000 at 8% to 13%, with no minimum time in business. They run through nonprofit intermediaries and take longer. Our microloan guide explains the program in full.
Revenue-based financing. The loosest criteria and the highest cost: it can work out equivalent to 40% to 350% APR. At this size there is usually a cheaper option worth checking first.
What you will likely qualify for, and what you will not
Many online business lenders look for at least 6 months in business, $10,000 or more in monthly revenue, and a personal credit score of 550 or higher.
Likely within reach if you clear those three. At $50,000 or less, online term loans, lines of credit and equipment financing are all realistic.
Possible through the microloan program if you are newer or smaller. It sets no minimum time in business, though intermediaries set their own requirements.
Hard to reach if you report under $10,000 a month. That is 61.3% of this group. Most online lenders look for $10,000 a month or more before they will consider an application, even for a smaller amount.
Before you apply anywhere
- Match the product to the use. Equipment goes on equipment financing. An uneven need suits a line of credit. A one-off project suits a term loan.
- Price it. At this size the cost difference between products is large in proportion to the loan. What business loans actually cost sets out typical ranges.
- Check whether speed matters. If it does not, the microloan program is often the cheapest route. If it does, online lenders move in days.
- Do not stack applications. Several hard inquiries in a short window can lower the score the next lender reads.
How TopFunders.ai fits
TopFunders.ai is not a lender and not a loan broker. We compare what you tell us against what our vetted funding partners will consider, and introduce you to the partners ready to make your business an offer. Which partners you are put in front of is decided using real approvals from businesses like yours. Checking your options doesn't affect your credit, and we never ask for your Social Security number or Tax ID to match you.
Being matched is an introduction, not an approval. The partner reviews your application, sets any amount, rate and terms, and decides whether to fund you. A match is not guaranteed. How we match explains the process.
See what your business qualifies for
Frequently asked questions
What is the easiest way to borrow $50,000 or less?
It depends on what the money is for. Equipment financing is often easiest when you are buying an asset. For general needs, online term loans move fastest if you report steady revenue.
Is an SBA microloan better than an online loan?
It is usually cheaper, at 8% to 13% per the SBA, and it sets no minimum time in business. It is also slower and runs through intermediaries. If you need the money quickly, an online loan is the faster route at a higher cost.
How much revenue do I need for a $50,000 loan?
Most online lenders look for $10,000 a month or more before they will consider an application. Lenders size the loan to what your revenue can repay.
Can I get a small business loan with bad credit?
Sometimes, with the right product. Equipment financing and revenue-based products ask less of your credit, and the second costs much more. Among applicants in this group, 48.1% place their credit under 600.
Will checking my options hurt my credit?
No. Checking your options doesn't affect your credit. A lender may run its own check later, but only if you choose to apply with them.
Figures in the table are shares of applicants asking for $50,000 or less, from more than 1,000 funding applications to TopFunders.ai. Applicants choose from ranges, so amounts are reported above or below a band edge. Figures are self-reported and not verified, and they describe businesses that applied, not businesses that were approved or funded. The overall figures and method are in our small business funding study; this page cuts the same applications to one group. Market rates are typical ranges, not any lender's published terms. SBA microloan terms are per the SBA.