Best Small Business Loans in Illinois 2023: Finest Selection

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Best Small Business Loans in Illinois

In 2023, the landscape for small business loans in Illinois is expected to remain competitive and diverse, offering entrepreneurs various financing options to support their ventures. With the continued growth of online and alternative lenders, small businesses will have even more opportunities to access tailored financing solutions that best suit their needs. 

Discover a world of funding solutions for your Illinois LLC, from short-term cash boosts and flexible credit lines to tailor-made financing options. Gain access to diverse lenders, loan products, and cutting-edge fintech platforms for speedy, efficient, and accessible small business loans in Illinois. Let LLCBase guide you through the exciting journey of setting up your business – we’ve got your back every step of the way.

Small Business Loans

What is a Small Business Loan

A small business loan provider is a financial institution, lender, or service that offers financing solutions specifically designed for small businesses in Illinois. These providers facilitate access to capital for small businesses, helping them meet various financial needs such as working capital, equipment purchases, expansion, and other growth-related expenses. Small business loan providers can include Illinois banks, credit unions, online lenders, and alternative financing companies. They offer a range of loan products, such as term loans, lines of credit, invoice financing, and merchant cash advances, each tailored to meet small businesses’ unique needs and requirements.

10 Best Small Business Loans in Illinois

We will discuss Illinois’s ten best small business loans, including eligibility criteria, loan amounts, annual percentage rates (APRs), and required minimum credit scores. Business loans provide financing options for business owners who want to start an LLC in Illinois. We’ll also provide the pros and cons of each business loan to help you make the best decision for your Illinois LLC.

1. OnDeck – Best for Short-term Loans

OnDeck is a leading online lender specializing in providing small businesses with short-term loans and lines of credit. With a simple application process, fast approval times, and flexible repayment options, OnDeck is an ideal choice for businesses seeking quick access to capital for short-term needs, such as working capital, inventory purchases, or unexpected expenses.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 29.9%

Minimum Credit Score: 625

Pros
  • Fast approval process
  • Flexible repayment options
  • Offers both term loans and lines of credit
Cons
  • High-interest rates for those with lower credit scores
  • Requires a personal guarantee
  • Not ideal for long-term financing
  • Unavailable in Nevada, North Dakota, or South Dakota.
Apply to OnDeck

2. Lendio – Best for Lender Comparison

Lendio is a small business loan marketplace that connects borrowers with a vast network of lenders, allowing business owners to compare loan options from various providers. By offering a wide range of loan products and personalized recommendations, Lendio helps businesses find the best financing solutions tailored to their unique needs and financial situation.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 560 or higher

Loan Amounts: $500 – $5,000,000

APR: starts at 3%

Minimum Credit Score: 560

Pros
  • Access to a vast network of lenders
  • One application for multiple loan options
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees
Apply to Lendio

3. QuickBridge – Best for Fast Funding

QuickBridge is an alternative lender that provides fast and flexible funding solutions to small businesses. With a simple application process, quick approval, and funding often within 24 hours, QuickBridge is an excellent choice for businesses needing immediate capital to address short-term financial needs or seize growth opportunities.

Eligibility Criteria

  1. At least nine months in business
  2. Minimum monthly revenue of $8,000
  3. Personal credit score of 850 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10-factor rates

Minimum Credit Score: 850

Pros
  • Fast funding, often within 24 hours
  • Simple application process
  • Early payoff discounts
Cons
  • Requires daily or weekly repayments
  • Short loan terms (up to 15 months)
  • Not ideal for startups or businesses with low revenue
Apply to QuickBridge

4. American Express Business Blueprint™ – Best for Lines of Credit

American Express Business Blueprint™ offers a range of financial solutions, including term loans and lines of credit, exclusively to American Express cardmembers. With flexible repayment options, competitive rates, and no origination or prepayment fees, this program provides businesses with the financial flexibility and support they need to grow and succeed.

Eligibility Criteria

  1. Must be an American Express cardmember
  2. Good credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $250,000

APR: Varies by loan term

Minimum Credit Score: 640; good credit history is required

Pros
  • Flexible repayment options
  • No origination or prepayment fees
  • Offers both term loans and lines of credit
Cons
  • Only available to American Express cardholders
  • Limited to businesses with strong financial performance
  • Requires a personal guarantee
Apply to Amex

5. BlueVine – Best for Flexible Lines of Credit

BlueVine is an online lender that offers flexible lines of credit and invoice factoring solutions to small and medium-sized businesses. With fast approvals, competitive rates, and the ability to draw funds only when needed, BlueVine’s lines of credit provide businesses with the financial flexibility they need to manage cash flow and seize growth opportunities.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 6.2%

Minimum Credit Score: 625

Pros
  • Fast approval and funding
  • No prepayment penalties
  • Only pay interest on the funds you use
Cons
  • Not available for some industries
  • Requires a lien on business assets
  • Higher APRs for those with lower credit scores
  • Unavailable to businesses in North and South Dakota, Puerto Rico, and other U.S. territories
Apply to BlueVine

6. National Funding – Best for Small to Mid-Sized Businesses

National Funding is a trusted alternative lender that offers a variety of loan products, including working capital loans, equipment financing, and merchant cash advances, designed to meet the unique needs of small to mid-sized businesses. With flexible terms, high approval rates, and a quick application process, National Funding is a reliable financing partner for businesses seeking tailored funding solutions.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 600 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10%-buy rates

Minimum Credit Score: 600

Pros
  • Flexible loan terms and repayment options
  • High approval rates
  • Quick application process
Cons
  • Not transparent about APRs
  • Requires a personal guarantee
  • Not ideal for startups or businesses with low revenue
Apply to National Funding

7. Fundbox – Best for Small to Mid-Sized Businesses

Fundbox is an innovative financial technology company that provides lines of credit and invoice financing solutions to small and medium-sized businesses. With a fast and straightforward application process, transparent pricing, and flexible repayment options, Fundbox helps businesses manage cash flow challenges and unlock growth opportunities.

Eligibility Criteria

  1. At least two months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 600 or higher

Loan Amounts: $1,000 – $150,000

APR: Start at 4.66%

Minimum Credit Score: 600

Pros
  • Fast funding, often within 24 hours
  • No prepayment penalties
  • Transparent pricing and fees
Cons
  • Short loan terms (up to 12 months)
  • Requires weekly repayments
  • Not suitable for startups or businesses with low revenue
Apply to Fund Box

8. TD Bank – Best for Healthcare Professionals

TD Bank offers specialized financing solutions designed exclusively for licensed healthcare professionals, including dentists, veterinarians, and physicians. With flexible repayment terms, relationship-based pricing, and a deep understanding of the healthcare industry, TD Bank is a trusted financing partner for healthcare practices seeking to grow, expand, or modernize their operations.

Eligibility Criteria

  1. Licensed healthcare professionals
  2. Good personal credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $5,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 660; good credit history is required

Pros
  • Specialized financing options for healthcare professionals
  • Flexible repayment terms
  • Relationship-based pricing for existing customers
Cons
  • Limited to healthcare professionals
  • Requires a personal guarantee
  • Not transparent about APRs and fees
  • Only located in 16 states
Apply to TD Bank

9. Funding Circle – Best for Established Business

Funding Circle is a leading online lender that offers affordable and transparent term loans to established small businesses. With competitive interest rates, longer loan terms, and no prepayment penalties, Funding Circle provides businesses the capital they need to invest in long-term growth opportunities and strengthen their financial position.

Eligibility Criteria

  1. At least two years in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 660 or higher

Loan Amounts: $25,000 – $500,000

APR: 7.49% to 24.99%

Minimum Credit Score: 660

Pros
  • Competitive interest rates
  • Longer loan terms (up to 5 years)
  • No prepayment penalties
Cons
  • Requires a lien on business assets
  • Not ideal for businesses with low revenue or credit scores
  • Longer application process compared to other lenders
Apply to Funding Circle

10. Biz2Credit – Best for Loan Options

Biz2Credit is a small business financing platform that connects borrowers with a wide range of loan options from an extensive network of lenders. With a personalized approach to loan recommendations and various loan products, Biz2Credit helps businesses find the right financing solution to meet their unique needs and financial goals.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 575 or higher

Loan Amounts: $25,000 – $6,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 575

Pros
  • Wide range of loan options
  • Access to a network of lenders
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees
Apply to Biz2Credit

FAQs

Which banks in Illinois offer the best business checking accounts?
Some banks in Illinois that offer great business checking accounts include Chase, Citibank, and PNC.
What is the minimum deposit required to open a business checking account in Illinois?
The minimum deposit needed to open a business checking account in Illinois varies among banks, but it can range from $50 to $500.
Are there any advantages of a smaller bank over a larger bank for a small business in Illinois?
Smaller banks in Illinois may offer more personalized service and may be more likely to approve loans for small businesses than larger banks.
How can I find the best bank for my specific business needs in Illinois?
You can research banks in Illinois that offer business accounts and compare their features, fees, and lending options to find one that fits your needs.
Can I open a business bank account online in Illinois?
Yes, many banks in Illinois offer online account opening for businesses.
What is the best way for a new business to establish credit with a bank in Illinois?
A secured credit card or a small business loan can be good ways for a new business to establish credit with a bank in Illinois.
Are there any banks in Illinois that specifically cater to small businesses?
Yes, there are several banks in Illinois that focus on serving small businesses, such as Byline Bank and Wintrust Bank.
Can a sole proprietor in Illinois open a separate bank account for their business?
Yes, a sole proprietorship in Illinois can open a separate business bank account to help track and manage business expenses.
Do banks in Illinois offer merchant services to businesses?
Yes, many banks in Illinois offer merchant services for businesses to process credit card payments and manage online transactions.
How important is online banking for small businesses in Illinois?
Online banking is essential for small businesses in Illinois to manage their finances, pay bills, and keep track of transactions.
Do banks in Illinois charge for ATM usage or account maintenance fees for business accounts?
Some banks in Illinois do charge ATM fees or account maintenance fees for business accounts, so it’s important to read the fine print before opening an account.
Are there any banks in Illinois that offer free business checking accounts?
Yes, some banks in Illinois offer free business checking accounts, such as U.S. Bank and Bank of America.
Can a small business in Illinois qualify for a business credit card with rewards programs?
Yes, many banks in Illinois offer business credit cards with rewards programs that small businesses can qualify for.
Are there any credit unions in Illinois that offer business accounts?
Yes, many credit unions in Illinois offer business accounts and may have lower fees than traditional banks.
Can I deposit checks remotely as a small business in Illinois?
Yes, many banks in Illinois offer remote check deposit as a feature for their business accounts.
Are online-only banks a good option for small businesses in Illinois?
Online-only banks can be a good option for small businesses in Illinois that prefer to do most or all of their banking online but may not offer in-person service.
Does compatibility with QuickBooks matter when choosing a bank for my small business in Illinois?
Yes, if you use QuickBooks to manage your business finances, it’s important to choose a bank in Illinois that is compatible with it.
Can I use my personal credit card for business expenses in Illinois?
You can use your personal credit card for business expenses in Illinois, but it’s recommended to have a separate business credit card and bank account to help keep expenses separate.
Do banks in Illinois offer loans for small businesses?
Yes, many banks in Illinois offer loans for small businesses, such as term loans, lines of credit, and SBA loans.
Are there any banks in Illinois that offer online business lending?
Yes, some banks in Illinois offer online lending platforms for small businesses, such as BlueVine and Fundation.
Can a small business in Illinois open a savings account along with a checking account?
Yes, many banks in Illinois offer savings accounts for small businesses, which can help with business savings goals.
What documents do I need to open a business bank account in Illinois?
To open a business bank account in Illinois, you’ll typically need your business formation documents, business tax ID number, and personal identification.
Are there any banks in Illinois that offer specialized business loans, such as for startups or minority-owned businesses?
Yes, some banks in Illinois, such as SomerCor and Accion Chicago, specialize in lending to specific types of businesses.
Can a non-profit organization in Illinois open a business bank account?
Yes, non-profit organizations can open business bank accounts in Illinois to help manage their finances.
Are there any benefits to switching to a different bank as a small business in Illinois?
Switching to a different bank in Illinois can offer opportunities for better interest rates, lower fees, and other banking perks, depending on your business needs.
What are the typical fees associated with business credit cards in Illinois?
Business credit card fees in Illinois can include annual fees, interest rates, balance transfer fees, and foreign transaction fees.
Can a small business with bad credit still qualify for a bank loan in Illinois?
Some banks in Illinois may be more open to lending to small businesses with bad credit, but it may be harder to get approved or may result in higher interest rates.
Are there any community banks in Illinois that offer good business banking options?
Yes, many community banks in Illinois offer personalized service and good business banking options, such as North Shore Community Bank and First Bank and Trust.
What should I consider when choosing a bank for my small business in Illinois?
When choosing a bank for your small business in Illinois, consider factors such as fees, lending options, online banking features, and personalized service.
Which small business bank is the best in Illinois?
The answer varies depending on your specific needs, but some of the top banks in Illinois for small business are First Midwest Bank, Republic Bank of Chicago, and Byline Bank.
What types of services do small businesses typically need from their banks?
Small businesses often need services such as checking and savings accounts, loans, credit lines, payment processing, and online banking tools to manage their finances effectively.
How can I find the best bank for my small business in Illinois?
You can start by researching the options available in your area and comparing fees, services, and customer reviews to determine which bank offers the best fit for your needs.
Are there any local banks in Illinois that focus specifically on small business customers?
Yes, some community banks in Illinois such as First Community Financial Bank and Itasca Bank & Trust Co. have a focus on serving small businesses and offer specialized services designed to meet their unique needs.
What are some things I should consider when choosing a small business bank in Illinois?
Some important factors include the bank’s fees and rates, their available services and tools, their experience working with small businesses, and their customer service rating.
Do I need a commercial bank account or a business checking account for my small business in Illinois?
Yes, a business checking account is typically necessary for managing your small business finances effectively. A commercial bank account is another option but may come with higher fees.
Can I apply for a small business loan in Illinois through my bank?
Yes, many banks in Illinois offer small business loans and lines of credit. You can speak with a representative about your options and apply through their website or in person.
What types of small business loans are available in Illinois?
Some options include term loans, business lines of credit, SBA loans, commercial real estate loans, and equipment financing.
How can I qualify for a business loan in Illinois?
Each bank will have its specific requirements, but they will typically look at your credit score, business history, cash flow, and collateral when considering your loan application.
Does my personal credit score affect my small business loan eligibility in Illinois?
Yes, your personal credit score can have an impact on your loan eligibility and terms, particularly if you are a young or small business with limited credit history.
How long does it take to be approved for a small business loan in Illinois?
The timeline can vary widely depending on the type of loan and the lender’s specific process, but some loans can be approved and funded within a few days while others may take several weeks or longer.
Should I consider working with an Illinois-based credit union instead of a bank for my small business finances?
Credit unions can have unique benefits such as lower fees and more personalized service, but their availability of small business banking services varies. It’s best to research their offerings and see if they meet your business needs.
Can an Illinois-based bank help with my cash management services for my small business?
Yes, many banks in Illinois offer cash management services that can help streamline your small business’s financial transactions, such as payment processing, wire transfers, and account reconciliation.
Are there any specific online banking features I should look for when choosing an Illinois-based bank for my small business?
Some important features include secure logins, mobile banking, bill payment, check deposit, and account alerts.
How do I determine if a bank’s fees are reasonable for my small business needs in Illinois?
You can compare their fee schedule with other banks and investigate what common fees for business banking are.
Where can I find information about an Illinois bank’s fees?
You can find a bank’s fee schedule on their website or by stopping in to their branch. Also need to call customer service line which may help explain their fee schedule.
Can I set up an account for foreign transactions at an Illinois small business bank?
Yes, some banks in Illinois offer services for international transactions, such as wire transfers and foreign currency accounts, that can be useful for small businesses that import or export goods or services.
What should I know about tax payments and payroll processing for small businesses in Illinois?
Most small businesses in Illinois are subject to state and local taxes and should work with a bank or accountant to ensure proper payments, record-keeping, and reporting. Banks also offer payroll processing services which many businesses use.
What kind of security measures do Illinois small business banks have in place to protect my account information?
Most banks in Illinois have multiple security measures in place, such as two-factor authentication, enhanced fraud monitoring, and encryption to provide an added layer of protection for your account information.
Can I access my account online at an Illinois small business bank?
Yes, most small business banks in Illinois offer online banking tools and mobile banking apps that allow customers to access their account information and take care of certain banking needs anytime anywhere.
What documents do I need to open a small business bank account in Illinois?
You will usually need to have your business’s legal paperwork, such as your business registration or articles of incorporation/organization, and an ID for anyone who will have access to the account, such as the business owner. Depending on the bank, extra documents may be needed like proof of address.
Does Illinois have any state-specific loan or grant programs for small businesses?
Yes, the State of Illinois offers multiple incentive programs and funds many of which for manufacturers; these can offer sources of business seed funding and capital linked with accredited service, thereby enabling local small businesses a better way of achieving their financial goals.
What happens if a bank in Illinois goes bankrupt or has financial problems?
Your deposits in an Illinois bank are insured by the Federal Deposit Insurance Corporation (FDIC) typically upto $250,000 per depositor. In other catastrophic circumstance where overhead costs exceed the total assets and liabilities, and you may stand as an unsecured creditor along with other bank depositors, vendors, lenders, and all else.
What are some important legal considerations for small businesses banking in Illinois?
You should be familiar with laws governing bank accounts, like the Uniform Commercial Code, and specifics related specifically to that bank like their terms of service, contract rules and regulations, amendment specifics, cancellation and merger prospects. Get in touch with either a local banks attorney or look into services from customer service in banking.
Can I access financing or other banking services as a sole proprietor or freelancer in Illinois?
Yes, self-employed individuals in Illinois can apply for many of the same small business banking services as other businesses including business credit cards, loans, and micro-lending programs. There may some prerequisites before qualifications, techniques to improve credit uation since requirements will vary from lender or bank.
Who can answer questions about Illinois banking services if I need additional help?
Customer service representatives at small business banks located in Illinois are available to answer questions and generally ready-for service account support with notable, comprehensive representative advice.

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Conclusion

As Illinois, also known as The Prairie State continues to foster a vibrant entrepreneurial ecosystem, having access to the right financial partners and resources will be crucial in navigating this thrilling ride. By exploring various small business loan options and staying attuned to the ever-evolving financing landscape, entrepreneurs can achieve their dreams and contribute to the ongoing prosperity of the Illinois economy.

When looking for the best small business loans in Illinois, it’s essential to consider your unique needs and financial situation. Whether you’re forming a Illinois LLC or growing your existing LLC in Illinois, each of these lenders offers something different to help you achieve your goals. Be sure to compare loan options, eligibility criteria, APRs, and repayment terms to find the right fit for your business. Visit LLCBase for more information about starting an LLC in Illinois.

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