May 10, 2023
min read
Written by: 
Nikolaus Hilgenfeldt
Ecommerce Growth

9 Best Startup Business Loans: Compare Your Options

Starting a business can be exciting, but securing funding to bring your ideas to life can be challenging. 

As an entrepreneur, you must have enough capital to get your business up and running.

Luckily, there are many financing options available for startups

However, choosing the best loan for your business can be overwhelming.

In this post, we'll compare the best startup business loans available to help you make the right decision for your business. 

In addition, we'll provide insights into the different types of loans, their eligibility criteria, and the pros and cons of each option.

So, don't let the lack of funding hold you back from achieving your business goals.

Read on to learn about the best startup business loan options and start turning your business dreams into reality.

9 Best Startup Business Loans

New businesses without a business credit score or access to other financing can use a startup business loan to cover initial costs and build their company.

Here are the top 9 best startup business loans to consider for your growth in 2023.

1. Myos – Best Startup Business Loan Overall


Loan amount: €10.000 – 2.500.000

APR:  Depending on your product score

Loan term: Up to 24 months

What is Myos?

Myos is an asset-based financial provider that helps global sellers grow their businesses.

You can get working capital loans ranging from £100,000 to £2,500,000, with a monthly interest rate based on the total amount borrowed.

It distinguishes itself from traditional lending practices by using AI to evaluate the market value of the products you sell, considering data from popular websites such as Amazon or Google Shopping.

Instead of requiring a personal guarantee, Myos approves the inventory or new orders of sellers as collateral. As a result, it makes the transaction faster, as there is no need for credit checks or extensive paperwork.

You can extend the loan repayment over 24 months with flexible terms.


Additionally, you can use the funds to support daily operations, expansion, marketing expenses, product lines, or inventory.

Depending on your financing needs, you can choose between the 2 options:

1. Purchase financing


2. Stock financing



To receive funding, you need to fit the following criteria:

  • Your company has a registered office in Germany, Austria, Cyprus, or the United Kingdom (UK).
  • Your company has been in business for at least 6 months.
  • Your company has been selling goods for at least 50 days.

Pros and Cons

✅ Myos provides money to businesses that have been in operation for at least 2 months.

✅ There is no  minimum monthly turnover.

✅ The maximum tenure of funding is 24 months.

✅ Easy online application and funding up to 72 hours.

✅ There is no personal guarantee and no hidden fees.

✅ Free quota for determining funding eligibility.

✅ Exceptional Trustpilot rating.

❌ Funding eligibility depends on your location.

2. Kiva – Best Startup Business Loan for Crowdfunding


Loan amount: $25–$15,000

APR: 0%

Loan term: 1-3 years

What is Kiva?

Kiva is a microlender that provides short-term, low-interest loans. 

One of the most cost-effective choices is to take out a crowdfunded loan through their service because they charge no interest.

Kiva also welcomes business owners of all credit scores. 

You also don't have to be a US citizen or permanent resident to be eligible. 

But sometimes, getting the money together takes over a month. 

Microloans begin at $25, are unsecured, and have shorter repayment periods. 


  • You must live in the USA
  • Don't have a history of bankruptcy or foreclosure
  • You are not engaged in multi-level marketing, direct sales, pure financial investing, or illegal activities.

Pros and cons

✅ 0% interest and no costs

✅ Accepting all forms of credit

✅ There are no mandatory residence restrictions.

❌ You need the support of friends and family to raise money

❌ You may need to wait around 45 days to raise enough money.

3. Iwoca: Flexi-Loan – Best Startup Business Loan for Flexible Loans


Loan size: £1,000-£500,000

(£10,000 for businesses trading less than 12 months)

APR: 24%

Loan terms: 1 day to 2 years

What is The Iwoca Flexi-Loan?

The Iwoca Flexi-Loan is intended to bridge short-term funding gaps, with loan terms beginning within 24 hours. 

Only when you withdraw the available funds is daily interest imposed.

There are no early repayment penalties, and you may be able to borrow more money quickly.

However, because of this flexibility, the Flexi-Loan has one of the higher interest rates and a maximum borrowing term of 2 years.


The maximum loan amount for enterprises with less than a 12-month trading history is £10,000. If your company has been operating for over a year, the cap is 10% of the previous year's revenue.

Pros and Cons

✅ Completely adaptable

✅ There are no early repayment penalties.

❌ High-interest rates (beginning at 24% AER)

❌ Loans are limited to £10,000 if you have less than a year of trading history.

4. Fleximize Flexiloan Lite – Best Startup Business Loan for Short-Term Financing


Loan size: £5,000-£500,000

Repayment term: 3-12 months

APR: Interest rates from 1.9% and 3.9% 

What is The Flexiloan Lite?

The Flexiloan Lite is the best choice for startup businesses needing short-term financing. Monthly interest rates range between 1.9% and 3.9%. 

However, this results in annual interest rates (AER) ranging from 25.3% to 58.3%.

Loan amounts are also limited to 2 months' earnings. 

So while you only need 6 months of trading history, loans require a monthly turnover of £5,000 (or £60,000 annually).

The loan is flexible, allowing for penalty-free overpayments while still allowing you to return the loan in full within the agreed-upon time.


For enterprises with at least 12 months of trading history, a complete Flexiloan is available, which offers larger loans of up to £500,000 (typical APR of 41%) and longer borrowing durations of 1-4 years.

Both types of loans have secured and unsecured loan options.

Pros and Cons

✅ Only 6 months of trading experience is required.

✅ A maximum loan sum of £500,000 is available.

✅ Make overpayments or pay off in full without penalty.

❌The annual interest rate is rather high

❌ Only short-term lending

❌ A minimum monthly turnover of £5,000 is required.

❌ Borrowing is limited to two months' worth of revenue.

5. Funding Circle – Best Startup Business Loan For SME


Loan size: £10,000-£500,000

Repayment term: 2-6 years

APR: Interest rates at 7.9%

What is Funding Circle?

Funding Circle, a lending platform, offers loans to startup companies with yearly interest rates as low as 7.9% (fixed). 

Depending on your business and circumstances, you can borrow from £10,000 to £500,000.

However, Funding Circle charges an 'origination' fee, the cost of which varies depending on the loan size. 

That amount will be spread out over the life of the loan.


Startup loans are usually available to the following businesses:

  • In operation for at least 2 years
  • A minimum annual turnover of £40,000.

Pros and Cons

✅ Annual interest rates begin at 7.9% (fixed).

✅ A large maximum loan amount

✅ There are no early repayment penalties.

❌ Minimum of two years of trading experience

❌ A minimum loan of £10,000 is required.

❌ Required personal guarantee

❌ Overpayments are not authorized (you must repay the loan in full).

❌ Payable origination charge

6. British Business Bank Start Up Loan For UK-residents


Loan amount: £500 to £25,000

APR: 6% annually

Repayment terms: up to 5 years

What is The British Business Bank?

The British Business Bank has one of the most competitive yearly interest rates at 6% (fixed). 

In addition, they give loans for non-profit purposes to new enterprises with no trading history.

Loans of £500 to £25,000 are available to new companies, with repayment terms of up to five years. 

Furthermore, each selected candidate will receive free mentoring for an entire year.

There are no fees for securing or repaying the loan early, and no personal guarantee is necessary.


To apply for a loan, you must meet the following requirements:

  • You're a current UK resident, and you have a UK-based business
  • You're launching a startup or have been in business for up to 36 months.
  • You cannot obtain funding from other sources (self-declaration is acceptable).
  • You have good credit and can afford to repay the loan.

Pros and Cons

✅ A 6% annual fixed interest rate

✅ There is no need for a personal guarantee.

✅ There are no application fees.

✅ There are no early repayment penalties.

✅ Access to business mentoring and assistance

❌ Only available to businesses that have been in operation for less than 36 months.

❌ The loan amount is limited to £25,000.

7. Guidant – Best Startup Business Loans With Good Credit Score 


Loan amount: $10,000 – $150,000

APR: 12% to 18%

Minimal credit score: 690

What is Guidant Financial?

Guidant Financial is one of the few financial institutions that will extend a line of credit to a startup before it even opens for business.

You need a credit utilization ratio of less than 50% and excellent personal credit to get approved. 

For suitable customers, it even provides an initial rate of zero percent.

After that, the APR is between 12% and 18%, lower than the average for business credit cards. However, there is a hefty origination fee

It's also not the quickest method, as receiving your funding can take several weeks.


  • Credit score higher than 690
  • Less than 50% credit utilization ratio
  • No recent negative lines on a credit report

Pros and Cons

✅ Funding available for businesses still in the brainstorming phase 

✅ An interest-free offer period

✅ Lower rates than standard business credit cards

❌ A 9% origination cost is relatively high.

❌ The minimum required personal credit score is 690.

❌ The funding of your LOC may take up to four weeks.

8. OnDeck- Best Startup Business Loans for Business Line of Credit


Loan amount: $6,000 – $100,000

APR: 29.9% to 65.9%

Minimal credit score: 625

Loan terms: Up to 12 months

What is OnDeck?

OnDeck's quick funding timeframes make it a good option for sudden financial needs. Instantaneous funding of up to $10,000 may be available through OnDeck's lines of credit, even on nights and weekends.


To be eligible, a business must meet the following requirements:

  • At least a year in operation,
  • A minimum annual revenue of $100,000
  • Personal credit score of at least 625. 

However, the fast funding times and low APRs come with a monthly $20 maintenance fee for the line of credit.

Pros and Cons

✅  Immediate financing

✅  Low minimum credit rating

✅  Fees are reduced or waived for repeat borrowers.

❌  A high beginning APR of 29.9%

❌  $20 monthly maintenance cost

9. Lendio


Loan amount: Up to $750,000

APR: 3% to 60% depending on funding type

Loan terms: 1–3 years short-term loans, 1–5 years term loans, up to 25 years for startup loans

Minimal credit score: Depends on lender and type of funding, but 660 for most

What is Lendio?

Lendio, a marketplace for loans, provides a wide range of loan options, including startup loans that are not available from all lenders but can be crucial in establishing a new business.

You can get startup loans of up to $750,000 with terms of up to 25 years and rates ranging from 0% to 17%.

Another benefit of working with Lendio is the availability of loans from over 75 lenders. Applying for a loan online can take you as little as 15 minutes, and you can receive funding within 24 hours, depending on the loan type.


Qualification requirements vary by lender and loan type. 

Still, you need a minimum credit score of 660, and your company must have been in business for at least 6 months.

Depending on the lender, you may need collateral in business or personal assets.

Pros and Cons

✅ You can compare different loans quickly and easily.

✅ The service is free and involves only a soft credit check.

✅ Users can search for 11 different types of business financing.

✅ Most customer reviews are positive.

❌ Fees and rates may differ depending on the lender.

❌ The service requires more information than other connection services.


Securing a startup business loan can be crucial in launching or growing your business.

When choosing a loan, it's essential to carefully review interest rates, repayment terms, fees, and the lender's reputation.

Additionally, you should ensure that you have all the financial documents and collateral to increase your chances of approval and make repayments manageable.

Remember, taking on debt to finance your business is a big decision you shouldn't take lightly. It's crucial to only borrow what you can realistically repay and to communicate with your lender if you're having trouble making payments.

By following these tips and conducting thorough research, you can secure the best startup business loan that fits your needs and helps your business thrive.

With the proper funding, dedication, and hard work, your startup can achieve its full potential and long-term success.

And, if you are looking for a trusted partner, we suggest you consider choosing Myos.


Myos was created with online sellers in mind, thus understands and offers loans specially tailored to your needs.


Get your non-binding, free offer now, and let us guide you to success!


What Are the Requirements to Get a Startup Business Loan?

Requirements for a startup business loan vary depending on the lender. Still, generally, lenders will look at factors such as your credit score, business plan, financial projections, collateral, and industry experience.

What Types of Startup Business Loans are Available?

Several types of startup business loans are available, including term loans, SBA loans, lines of credit, equipment financing, and merchant cash advances. Each loan type has its requirements, terms, and benefits.

How Much Can I Borrow for a Startup Business Loan?

The amount you can borrow for a startup business loan depends on several factors, such as your business plan, creditworthiness, and collateral. Generally, loans can range from a few thousand to millions.

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