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Best business loans for LLCs in 2026
The best business loans for LLCs are the same core products any small company uses: a line of credit for working capital, a term loan or SBA 7(a) loan for larger investments, and equipment financing for assets. Forming an LLC does not by itself change what you qualify for. Most lenders still ask the owners for a personal guarantee, so the LLC's liability shield has limits when it comes to debt.
By the WithFunded team · Published November 11, 2026 · Rates as of November 2026
The short list
- Best for working capital
- Business line of credit
- Best for major investments
- SBA 7(a) loan
- Best for a one-time purchase
- Online term loan
- Best for vehicles and machinery
- Equipment loan
The 4 best options, ranked
1. Business line of credit Best for working capital
A line in the LLC's name builds the company's own credit history, which matters later when you want larger limits.
Watch for: Some lenders add draw or maintenance fees, and a limit can be cut at renewal. Business line of credit guide →
2. SBA 7(a) loan Best for major investments
An LLC with two years of returns can use a 7(a) loan for expansion, acquisition, or real estate at capped rates. Owners of 20% or more are generally asked to guarantee it.
Watch for: Heavy documentation, and the timeline rules it out for anything urgent. SBA loan guide →
3. Online term loan Best for a one-time purchase
A fixed loan to the LLC keeps a defined expense separate from day-to-day cash.
Watch for: A longer term lowers the payment but raises the total interest you pay. Term loan guide →
4. Equipment loan Best for vehicles and machinery
Equipment titled to the LLC secures its own loan and stays on the company's books.
Watch for: Older or highly specialized equipment gets shorter terms and higher rates. Equipment financing guide →
Side-by-side comparison
| Option | Verdict | Cost basis | Funding speed | Qualifies on |
|---|---|---|---|---|
| Business line of credit | Best for working capital | Representative 8%–30% APR, charged only on what you draw | Often days | Revenue, time in business, and credit |
| SBA 7(a) loan | Best for major investments | Capped at 10.00%–13.50% by loan size (prime plus the SBA maximum spread) | Weeks to months | Generally stronger credit and two or more years in business |
| Online term loan | Best for a one-time purchase | Representative 8%–30% APR, fixed payments over 6 to 60 months | Days | Revenue, time in business, and credit |
| Equipment loan | Best for vehicles and machinery | Representative 8%–30% APR, with the term matched to the equipment's useful life | Days to weeks | The equipment is the collateral, which can offset a thinner credit profile |
What it costs
Monthly payments on a standard fixed-payment loan at the representative 8%–30% APR band. The low end of each range is 8% APR and the high end is 30% APR.
| Amount | 24 mo | 36 mo | 60 mo |
|---|---|---|---|
| $25,000 | $1,131–$1,398 | $783–$1,061 | $507–$809 |
| $75,000 | $3,392–$4,193 | $2,350–$3,184 | $1,521–$2,427 |
| $200,000 | $9,045–$11,183 | $6,267–$8,490 | $4,055–$6,471 |
Financing $75,000 over 36 months costs about $2,350–$3,184 a month, or $9,608 to $39,619 in total interest, depending on the rate you qualify for. WithFunded calculation, representative 8%–30% APR band. Not a quote.
A line of credit charges interest only on the balance you have drawn. This is the monthly interest on a carried draw, before any principal is repaid:
| Carried draw | At 8% APR | At 19% APR | At 30% APR |
|---|---|---|---|
| $20,000 | $133 | $317 | $500 |
| $60,000 | $400 | $950 | $1,500 |
| $120,000 | $800 | $1,900 | $3,000 |
Interest-only illustration across the representative band. Draw fees and repayment schedules vary by lender. WithFunded calculation.
What lenders look at
- The LLC's revenue, bank statements, and time in business.
- The personal credit of each owner who will guarantee the loan.
- Good standing with the state and an EIN, which lenders verify.
Mistakes to avoid
- Assuming the LLC protects you from a business loan you personally guaranteed.
- Letting the LLC's state registration lapse. An entity not in good standing cannot close a loan.
Frequently asked questions
- Can a new LLC get a business loan?
- A brand-new LLC with no revenue has limited options, mainly equipment financing, business credit cards, and microloans. What matters is operating history and revenue, not the date the LLC was formed.
- Do LLC owners have to personally guarantee a loan?
- Usually. Most small business lenders require a personal guarantee from owners, and SBA loans generally require one from each owner of 20% or more.
- Does an LLC have its own credit score?
- It can. Once the LLC has an EIN, trade accounts, and credit in its name, business credit bureaus build a file on it. That takes time and on-time payments.
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How we ranked these options
This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.
WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.
Related guides
The top-ranked option on this page is business line of credit because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.
Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.