Bank Said No? Where to Get a Business Loan Next
A bank turning you down doesn't mean you can't get financing. Banks reject many small business requests, often over time in business, credit score, collateral or paperwork. Other lenders weigh different things, like your bank deposits or sales. Here's where to look next, and what to watch out for.
First, find out why
Ask the bank for the reason in writing. Under federal law, a lender that turns down a business credit application generally must tell you why, or tell you how to ask. Businesses with more than $1 million in revenue may need to ask in writing within 60 days. The reason points you to the right next step:
| Reason you were declined | Where to look next |
|---|---|
| Too new (under 1–2 years) | Online lenders and lines of credit with shorter time-in-business minimums |
| Credit score too low | Lenders that decide mainly on bank cash flow or sales |
| Not enough collateral | SBA loans, unsecured lines of credit, revenue-based financing |
| You sell online and the bank doesn't understand it | E-commerce and marketplace lenders |
| You're waiting on customer invoices | Invoice factoring or receivables financing |
| You need a big order filled | Purchase order financing |
Options worth checking
SBA loans. SBA loans are made by banks and other lenders but partly guaranteed by the government, which can help borrowers who don't meet a bank's usual standards. They're among the cheapest options but take weeks or months. Lenders on Lender List include iBusiness Funding, Busey Bank and Milestone Bank.
Online term loans. Faster decisions, often based on your bank account and accounting data. Compare Lendistry and QuickBooks Capital.
Business lines of credit. Draw what you need and pay only for what you use. See Bluevine and Fundbox.
Financing tied to your sales platform. If you sell through Shopify, PayPal, Square, Stripe or Amazon, you may already be eligible for an offer based on your sales history. See Shopify Capital, PayPal Working Capital, Square Loans, Stripe Capital and Parafin.
Invoice and order financing. If customers owe you money or you have a large order to fill, see FundThrough, Riviera Finance and the purchase order lenders SouthStar Capital and King Trade Capital.
Be careful with "approved in minutes"
When the bank says no, the fastest offers are often the most expensive. Before you sign anything:
- Ask for the total amount you'll repay and an estimated APR. Use our factor rate to APR calculator to check.
- Check the payment schedule. Daily payments can drain cash before customers pay you.
- Look for a personal guarantee, a blanket lien or a confession of judgment. Learn what these mean in lending terms explained.
- Watch out for upfront fees charged before you receive any money.
- Applying can trigger calls from brokers. Read how a lender uses your information before you share bank statements.
Improve your chances next time
- Keep business and personal money in separate accounts.
- Keep up-to-date financial statements and tax returns.
- Pay down existing balances and avoid taking on several advances at once.
- Build business credit with a card or line you pay on time.
Every listing on Lender List shows the credit check, minimum revenue and minimum time in business where available, so you can see basic requirements before you apply. Browse all lenders.
Non-bank lenders to compare after a bank decline
| Lender | Type | Amounts | Cost | Funding speed |
|---|---|---|---|---|
| Bluevine | Fintech; line of credit issued by Celtic Bank, serviced by Bluevine | $1,000 to $250,000 | Rates from 7.8% (LendingTree: per 26-week term); about 29% APR before the draw fee (Lender List est.) | Decision in about 5 minutes; funds within 24 hours, instantly to Bluevine Checking |
| Fundbox | Online lender and embedded-finance platform (fintech) | $1,000 to $150,000 on the line (third-party reported) | Fees from 4.66% per 12-week draw and 8.99% per 24-week draw (about 36% to 37% APR) | Decision in minutes; funds within 2 business days |
| OnDeck | Direct online lender (OnDeck family of companies or Celtic Bank) | $6,000 to $200,000 (line); $5,000 to $400,000 (term loan) | Average APR 59.8% (line) and 53.2% (term loan), first half of 2026 (NerdWallet: 39% to 99% line, 35% to 99% term loan) | Same day on weekday checkouts by 10:30 a.m. ET; otherwise 2 to 3 business days |
| Backd (Austin Business Finance) | Online lender; business loans originated by FinWise Bank, serviced by Backd | Line $50K to $1M; term loan $50K to $1.5M | Not published; 35% to 55% APR on the line (NerdWallet est.) | Decision in under 24 hours; funding can take longer |
| Mulligan Funding | Online lender; most loans issued by FinWise Bank | Up to $10 million (no published minimum) | Not published (benchmark at OnDeck's 53.2% average APR: about $7,360 on $25,000; not a Mulligan quote) | Approval in a few hours; funds as soon as the same business day |
| QuickBooks Capital | In-software lender; loans issued by WebBank | $1,500 to $250,000 (term loan); $1,000 to $100,000 (line) | 9.99% to 36% APR (term); 13.49% to 35.99% APR (line) | Decision in as little as 30 seconds; funds in 1 to 2 business days |
| Newity | SBA lender service provider (not a lender); loans made by partner banks | Up to $350,000 (SBA 7(a), Growth Term); up to $1,000,000 (two newer SBA programs) | SBA: Prime + 2.75% to 3.75% variable; Growth Term: 15% to 24% fixed | Offer in under 10 minutes; closing time not published |
| SmartBiz Bank | FDIC-insured national bank (cert 58158) and online SBA platform | $50,000 to $350,000 (SBA 7(a), online) | Prime + 3% to Prime + 4.75%, variable; 11.25% median starting rate | A couple of weeks; 4 to 6 weeks above $150,000 |
| Lendistry | CDFI and nonbank SBA Preferred Lender (direct lender) | $10K to $5M | SBA 7(a) variable from 7.75% (11.34% FY2026 average); non-SBA fixed from 11.99% | 5 to 20 business days (SBA up to $350K); 35 to 90 business days (SBA Standard); 3 to 7 business days (non-SBA) |
| Balboa Capital | Direct lender; division of Ameris Bank (Member FDIC) | Up to $500,000 equipment (application-only); $20,000 to $250,000 working capital | Rates not published; about $1,905/month on $75,000 over 60 months in our 18% APR example | Decision within one hour; same-day funding if approved |
| Beacon Funding | Direct equipment lender | $10,000 to $500,000 typical; up to $1,000,000 | Rate not published; 6.99% to 24.99% APR per New Frontier Funding (2024) | Approval in 24 to 48 hours |
| Crest Capital | Direct equipment lender (not a bank) | $10,000 to $500,000 (larger by arrangement) | Fixed rate, not published; from 5% per Merchant Maverick | Decision usually same business day; funds 24 to 48 hours after paperwork |
| ClickLease | Direct equipment lessor (lease-to-own), sold through equipment dealers | Up to $30,000 (third parties report a $500 minimum) | Fixed lease surcharge, no rate quoted; about 20% to 31% APR in our example | Decision in seconds; seller paid directly, often same day |
| FundThrough | Direct invoice factor (non-bank) | No stated cap; custom pricing above $1 million outstanding | 1.9% to 2.9% per 30 days, 100% advance minus the fee (third-party: 2.75% to 8.25%) | First funding in days; within 24 hours after that |
| altLINE (The Southern Bank) | Bank-owned invoice factor (division of The Southern Bank Company) | $30,000 to $5,000,000 (factoring) | 0.75% to 3.5% of the invoice; about 24% simple annualized in our example | Advance within 24 hours |
| Eagle Business Credit | Non-bank invoice factor (direct funder) | $1,000 to $5,000,000 funding lines | Fees from 1% (under $50,000) or 2% (over $50,000) | First setup about 48 hours, then under 12 hours |
Lines of credit, term loans, SBA lenders that work with smaller loans, equipment financing and invoice factoring. From each lender's Lender List review (Lender List est. where noted). Updated 2026-10-27. Confirm terms with the lender. See also the most active SBA 7(a) lenders in your state.
Bank said no: FAQ
Why do banks turn down small business loans? Common reasons are less than two years in business, thin or uneven profits, low personal credit, too little collateral or a loan size the bank doesn't want to process. Ask the bank which one applied so you can target the right alternative. Where can I get a business loan if my bank declines me? Try a community bank or credit union, an SBA lender (SBA Express or a microloan for smaller amounts), then online term loans, lines of credit, equipment financing or invoice factoring depending on what you need the money for. Will applying to several lenders hurt my credit? Many online lenders start with a soft credit pull that doesn't affect your score; a hard pull usually comes only when you accept an offer. Avoid sites that send your application to dozens of lenders at once. Is a merchant cash advance a good option after a bank decline? It's fast but usually the most expensive option, often well above 50% APR, with daily or weekly debits. Compare term loans and lines of credit first. This page is general information, not financial advice. Confirm terms with each lender.