Easy business loans

Although there is no official definition of an easy business loan, the term usually applies to business financing that requires low documentation and has more lenient qualifying rules. Compared to banks and credit unions that offer more traditional business loans – funding that typically requires strong credit, excellent finances and several years in business – easy business loans are usually obtained from online lenders and may be secured with lower credit scores, shorter times in business and less financial paperwork.

Key features of easy business loans include:

Flexible qualifications

Easy business loans usually come with more relaxed qualifying rules. This means less focus on credit score, time in business and piles of paperwork and more focus on the overall performance of the organization. (Although you will usually still need to provide basic documentation such as bank statements and customer invoices). Easy business loans may be secured with personal credit scores as low as 500, well below the minimum 650 rule set by most banks and credit unions – and, depending on the type of easy loan you secure, physical collateral may not be required. 

Main benefit: More lenient qualifying means these loans can be a good option for borrowers who have weaker credit, shorter business history and thinner paperwork. 

Quick to fund

Compared to loans from banks and credit unions that can take weeks to fund, easy business loans are jet-propelled, sometimes funding your loan in 24 hours from receipt of application.

Main benefit: If you need funds in a hurry, an easy business loan can be the fastest solution. (Find out more about quick and easy business loans here).

Simple applications

Many traditional business loans, and especially SBA loans, have long and complicated application processes – often requiring a vast array of documents, statements from your accountant and even a personal interview. In contrast, easy business loans usually ask the borrower to complete a single online application form and upload a few documents such as business bank statements and personal tax returns. 

Main benefit: Simple applications can speed up the approval process and reduce the stress on you.  

Issued by online lenders

Most easy business loans are provided by online or alternative lenders. Although some traditional business loans may be easier to secure than others, (for example an SBA microloan that requires less paperwork and may be obtained with a FICO score of 500 or even no score at all). Online lenders typically provide the greatest flexibility in approving business loan applications. 

Main benefit: Better chance of approval and a faster, more streamlined application process.

Higher interest rates

Because easy business loans can be obtained with lower credit scores, less paperwork and shorter or more patchy business history, lenders are carrying more risk. To balance this, they will typically charge higher interest rates and fees than you may pay on a traditional loan from a bank or credit union. 

Easy business loans can be secured with interest rates that start as low as 6%, but the rate you pay will be determined by your business situation and your risk profile. This means no two easy business loans are alike. Each is tailored to the unique circumstances of the borrower.

Main benefit: You may pay a little more, but you get the funds sooner.

At a glance – traditional business loans compared to easy business loans