May 24, 2023
min read
Written by: 
Nikolaus Hilgenfeldt
Ecommerce Basics

6 Best Small Business Loans - Which One to Choose In 2023

Did you know that only 48% of small businesses can access the necessary financing?

Among those who don't, 52% have either received no funding or only a portion of what they requested. 

And that is no surprise because banks, which need a lot of paperwork and financial information, used to be the primary source of small business loans.

However, alternative lenders have a higher approval rate of 56.8%. 

With so many loan options available, it can be overwhelming to choose the right one. That's why we've created a guide to the best small business loans.

So if you're ready to take your business to the next level, keep reading!

1. Myos


Loan amount: €10.000-2.500.000

APR/Interest rate: Depending on the product score

Type of funding: Asset-based

Myos introduces the world's first asset-based finance specifically designed for online sellers.

The solution is tailored to meet the fast-paced demands of online business and to set a new standard in risk assessment.

To determine the financing volume and interest rate, Myos uses an AI-based product evaluation system.

This system considers various aspects, such as price history, competition, and visibility.

As a result, the financing volume is not dependent on the purchase price, meaning it can be either lower or higher.

You can receive between €10.000-2.500.000, for different purposes, such as:

💡Purchasing more inventory: During peak seasons, you may need to increase your inventory levels to meet customer demand. With sufficient capital, you can do this without worrying about running out of cash.

💡Covering transportation costs: Shipping and transportation costs off your supply chain can be significant for online businesses. 

💡Investing in marketing: Effective marketing helps your business reach a larger audience and increase sales. 

💡Launching new products: Additional working capital gives you the resources to purchase more products and expand your product line, attracting new customers and keeping current ones returning for more.

💡 Renovating or expanding warehouses: As your business grows, you may need to upgrade your warehouse or storage facilities. 

How Does It Work?

Focusing on helping sellers grow, Myos provides a risk-free solution to increase sales and profits. 

These financing services enable sellers to order more goods, invest in marketing, or launch new products through 2 financing options:

1. Purchase financing


2. Stock financing


Myos accepts your products as security without requiring any personal guarantees. Repayment of the loan is flexible, allowing you to choose a repayment term within 24 months. If you no longer need the funds, you can repay the loan without incurring extra costs, and the project will be finished.

❗In addition, the monthly fee is only applicable to the outstanding capital. And your product scoring determines the percentage fee.


To receive funding from Myos, you need to meet the following requirements:

  • A registered office in Germany, Austria, Cyprus, or the United Kingdom (UK).
  • Your company must have been in operation for at least 6 months.
  • A minimum of 50 days of selling goods.
  • Your products are sold for at least 5€ (EU) or £5 (UK) and are ready for sale.

2. Saldo Bank


Loan amount: 1,000 to 10,000 €.

APR/Interest rate: Depending on the loan

Type of funding: Secured loan

Saldo Finance is a reliable lending institution with a decade of experience operating in Northern Europe.

They assist businesses in meeting their urgent financial requirements by incorporating cutting-edge technology and innovative approaches.

The system promptly approves small business loans and transfers the funds to the designated account within a few minutes of verifying and submitting the online application.

These small business loans are beneficial and appropriate for small and medium-sized businesses operating in Lithuania.

How Does It Work?

Corporations, companies, legal entities, and partnerships can get this loan for several reasons, including:

  • Settling debt
  • Initiating new investment projects
  • Realizing development goals or start-ups
  • Purchasing equipment or goods for the business.

The SME loan has a payment period ranging from 1 to 18 months.

It is secured by a personal guarantor, with loan amounts varying from 1,000 to 10,000 €.

The monthly payment for this loan starts at 98.58 € per month, and the interest rate starts at 0%. 

The fixed cost of this loan is determined based on the loan offer.


The following types of companies are eligible to apply for a loan: 

  • Sole proprietorship
  • Private limited company
  • Partnership enterprise
  • Cooperative company
  • Agriculture company
  • Public institution
  • Farmers.

3. British Business Bank


Loan amount:  £500 to £25,000

APR/Interest rate: Fixed interest rate is 6% per year

Type of funding: Unsecured loan

British Business Bank collaborates with a nationwide network of business support partners to offer government-backed, unsecured loans ranging from £500 to £25,000 for starting or expanding a business. 

Along with financing, you can also receive 12 months of complimentary mentoring and exclusive discounts on various business products. 

Additionally, during the application procedure, you can obtain free assistance and advice on creating a cash flow forecast and drafting a business plan.

How Does It Work?

You can borrow up to £25,000, although the average funding amount is £7,200.

The fixed interest rate is 6% per year, with a repayment schedule over 1–5 years.

Additionally, there are no fees for arranging the loan or paying it back early.

If you're seeking a business loan to finance a start-up, you should consider this type of loan.


To apply for a Start loan, you need to satisfy the following conditions: 

  • You must be 18 years of age or above, currently residing in the UK, and starting a new business or have been operating for up to 36 months.
  •  You should not be able to obtain financing from other sources, and your business must be in the UK. 
  • You must have the right to work in the UK and meet the eligibility criteria for your business type and the reason for seeking the loan under the scheme's provisions.
  • You need to pass credit verification process and demonstrate that you can afford to repay the loan.

4. October


Loan amount: Up to €2 million

APR/Interest rate: Setup fee plus monthly fee

Type of funding: Hybrid funding model

October offers financing options for projects up to €2 million with a maximum repayment term of 7 years. In addition, you can choose between a traditional business loan or a leasing arrangement.

You can use the funding for a variety of projects, including:

October's platform offers a hybrid funding model where individual lenders can choose investment projects. Then, the management automatically invests in projects to align their interests with lenders.

How Does It Work?

October offers free financing requests and analysis by their credit team. After funding the loan and agreeing on financing terms, October will charge certain fees, which are transparent in the final offer.

These fees include a 3% project setup fee deducted from the borrowed amount and a 0.04% monthly fee in the monthly repayment. 

These costs are listed as financial expenses in your income statement and thus reduce your taxable income.

Lastly, your bank account will be automatically debited each month for the repayments, which include the capital and monthly fees.


To receive funding, you need to meet the following requirements:

  • You must be EU registered ( France, Spain, Italy, The Netherlands, or Germany)
  • At least 3 years of existence, 
  • A turnover of more than €250,000, 
  • You must be profitable and with sufficient repayment capacity

5. Bibby Financial Services


Loan amount: Depending on the loan type

APR/Interest rate: 1.5% to 3% of the invoice value, with an additional service charge of 0.5% to 3% of the annual turnover.

Type of funding: Invoice financing

Bibby Financial Services (BFC) is a multinational corporation that serves small and medium-sized enterprises by offering financial services.

Bibby is a direct lender offering various financing options to help businesses unlock working capital in multiple scenarios, such as growth, expansion, and overseas trade. 

Their solutions include management buy-ins and buy-outs, refinancing, corporate restructuring, and mergers and acquisitions.

Additionally, Bibby's financing options can free up cash flow and unlock working capital for new equipment purchases.

How Does It Work?

SMEs can access upfront funding against unpaid invoices through Factoring or Invoice Discounting. 

Factoring includes support in collecting payment from customers, while in Invoice Discounting, the business continues to collect payment from customers. 

Both options offer flexible cash flow solutions, allowing SMEs to avoid waiting for customers to pay their invoices.

The costs for their Invoice Financing solutions generally range from 1.5% to 3% of the invoice value, with an additional service charge of 0.5% to 3% of the annual turnover.

Factors like business size, industry, and funding requirements may impact these fees.

Bibby's Business Invoice Funding allows businesses with an annual turnover below £300,000 to release up to 100% of their invoice value without setup fees or long-term contracts. 


The loan eligibility criteria for Bibby Financial Services may vary depending on the specific type of financing you apply for.

However, some general eligibility requirements for invoice financing with Bibby include having a business registered and operating in the UK and providing goods or services on credit terms.

Additionally, you may need a minimum annual turnover and invoice value to qualify for financing.

6. Funding Circle


Loan amount: Up to £1 million

APR/Interest rate: Starting from 7.9% per year.

Type of funding: Secured and unsecured loans

If you want financial assistance for your business, a loan from Funding Circle might be the right option.

Funding Circle offers two types of loans to cater to your business needs: unsecured and secured.

  • Unsecured loans, with a limit of up to £500,000, enable you to borrow without putting any business assets, such as property or equipment, as collateral. It's a quick and straightforward way to obtain affordable funding for your business.
  • Secured loans, with a limit of up to £1 million, enable you to borrow more using your business assets as collateral. This option is suitable if you require a large sum of money. In addition, secured loans may require a personal guarantee.

Both unsecured and secured loans are available for a variety of purposes, including:

How Does It Work?

When applying for a loan, the amount you want to borrow, the loan term, and the interest rate all affect the cost of borrowing.

In addition, you need to pay a one-time completion fee at the time of loan initiation.

The interest rate is calculated on several factors, including your credit score and financial situation. 

Still, it is usually starting from 7.9% per year.

You also have the option to obtain an unsecured loan, which does not require any property or assets as collateral. 

Furthermore, if you decide to settle the loan in full before the agreed-upon term, no fees or penalties are involved.


Funding Circle requires applicants to meet the following eligibility criteria for loan applications:

  • The business must have been operating for at least one year.
  • Your business location must be in the United Kingdom.


Small business loans can provide vital funding for those looking to start or grow their businesses.

Whether you're looking to purchase inventory, cover transportation costs, invest in marketing, launch new products, or renovate your facilities, a small business loan could provide the financial flexibility you need to achieve your goals.

Of course, as with any financial decision, it's crucial to do your due diligence and ensure you understand the terms, fees, and repayment schedules associated with any loan you consider.


At Myos, we ensure that you work with a trusted lender that can help ensure a positive borrowing experience and set your business up for success.

So don't be afraid to explore your financing options, take calculated risks, and seize the opportunities that come your way.

Sign up with Myos today, and get the financial support you need to turn your small business dreams into reality!

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