Best Small Business Loans in Massachusetts 2023: Finest Selection

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Best Small Business Loans in Massachusetts

In 2023, the landscape for small business loans in Massachusetts 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 Massachusetts 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 Massachusetts. 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 Massachusetts. 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 Massachusetts 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 Massachusetts

We will discuss Massachusetts’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 Massachusetts. We’ll also provide the pros and cons of each business loan to help you make the best decision for your Massachusetts 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

What are the best small business banks in Massachusetts?
Some of the best small business banks in Massachusetts include Bank of America, Cambridge Savings Bank, Webster Bank, and Santander Bank.
What services do small business banks offer in Massachusetts?
Small business banks in Massachusetts offer a range of services, including checking and savings accounts, lines of credit, loans, merchant services, online banking, and cash management.
Do small business banks in Massachusetts offer mobile banking?
Yes, many small business banks in Massachusetts offer mobile banking services through their mobile apps, allowing customers to check their account balances, transfer funds, deposit checks, and pay bills from their smartphones.
How do I choose the best small business bank for my Massachusetts-based business?
To choose the best small business bank for your Massachusetts-based business, consider factors like fees, interest rates, services offered, location, and customer service.
What are some free small business checking accounts at banks in Massachusetts?
Some banks in Massachusetts offer free small business checking accounts, including Bank of America’s Small Business Checking and TD Bank’s Small Business Checking.
How can I open a small business account at a bank in Massachusetts?
To open a small business account at a bank in Massachusetts, you may need to provide your business documentation, such as your articles of incorporation, tax ID number, and business licenses. You can also open an account online or by visiting a branch.
Can small businesses get loans from banks in Massachusetts?
Yes, many banks in Massachusetts offer small business loans, including term loans, lines of credit, and SBA loans. You will need to meet certain requirements, such as having good credit and providing collateral.
What is the difference between a business checking account and a personal checking account in Massachusetts?
A business checking account is designed for businesses and typically comes with features like online payment processing, cash management services, and multiple user access. A personal checking account is designed for individuals and doesn’t offer the same services for businesses.
Do Massachusetts small business banks offer overdraft protection for checking accounts?
Yes, many small business banks in Massachusetts offer overdraft protection for their business checking accounts. This allows businesses to avoid overdraft fees and access funds they may need quickly.
Can I manage my Massachusetts small business bank account online?
Yes, many Massachusetts small business banks offer online banking and mobile banking services, allowing you to manage your account and perform banking tasks from anywhere at any time.
Can I access cash through my Massachusetts small business bank account?
Yes, many small business banks in Massachusetts offer cash management services, including payment processing, ACH services, and wire transfers.
What are some common fees for small business bank accounts in Massachusetts?
Common fees for small business bank accounts in Massachusetts may include monthly maintenance fees, transaction fees, wire transfer fees, overdraft fees, and ATM fees.
What are some good savings accounts for Massachusetts-based small businesses?
Some good savings accounts for Massachusetts-based small businesses include options from Bank of America, Santander Bank, and Cambridge Saving Bank.
Do small business banks in Massachusetts offer online bill pay services?
Yes, many small business banks in Massachusetts offer online bill pay services, allowing businesses to pay bills securely and easily.
Can Massachusetts small businesses get credit cards from their banks?
Yes, many small business banks in Massachusetts offer credit card options for small businesses, such as the Bank of America Business Advantage Cash Rewards Mastercard.
Can small business banks in Massachusetts help with payroll processing?
Yes, many small business banks in Massachusetts offer services like payroll processing and tax filing, helping businesses to streamline their payroll operations.
What is the best bank for small businesses with locations throughout Massachusetts?
Some of the best banks for small businesses with locations throughout Massachusetts include Bank of America, Citizens Bank, TD Bank, and Santander Bank.
What is the typical interest rate on a small business loan from a Massachusetts bank?
The typical interest rate on a small business loan from a Massachusetts bank can vary depending on the type of loan and the borrower’s creditworthiness, but rates may range from around 4% to 10%.
Can Massachusetts small businesses use their bank accounts for virtual payments like Zelle?
Yes, many Massachusetts small business banks offer virtual payment options like Zelle to make it easy for customers to make online payments.
Are there any restrictions on small business bank accounts in Massachusetts?
Small business banks may have certain restrictions on business accounts, such as minimum balance requirements, transaction quantity limitations, and other terms and conditions.
What appraisal approach do Massachusetts small business banks use for their loans?
Massachusetts small business banks may use different appraisal approaches, such as the cost approach, income approach, and market approach, to determine the value of collateral for loans.
Can Massachusetts small businesses get lines of credit from their banks?
Yes, many banks in Massachusetts offer lines of credit for small businesses, providing access to capital that can be used for a variety of business needs.
What sets Massachusetts-based small business banks apart from national banks?
Massachusetts-based small business banks may have a greater understanding of the state’s economic climate and local businesses, allowing them to provide customized services and advice to their small business clients.
How can small businesses in Massachusetts establish a business credit rating with their banks?
Small businesses in Massachusetts can establish a business credit rating by regularly making timely payments, maintaining low levels of debt, and engaging in other responsible financial behavior.
Can Massachusetts-based small businesses access SBA loans through their banks?
Yes, Massachusetts-based small businesses can access SBA loans through participating banks in the state.
How do Massachusetts small business banks help with wealth management?
Massachusetts small business banks can help with wealth management by offering services like investment management, financial planning, and estate planning.
Do small business banks in Massachusetts offer insurance services for businesses?
Yes, many small business banks in Massachusetts offer insurance services, such as liability insurance, workers’ compensation insurance, and property insurance, designed specifically for businesses.
What are some of the best small business banks in Massachusetts?
Some of the best small business banks in Massachusetts include Eastern Bank, Rockland Trust, and TD Bank.
Are there any community banks that specialize in working with small businesses in Massachusetts?
Yes, community banks such as Salem Five and BankFive have a strong focus on working with small businesses in Massachusetts.
What types of services do small business banks in Massachusetts offer?
Small business banks in Massachusetts typically offer a range of services including business checking, savings, and loan options.
Is it necessary for small business owners in Massachusetts to have a separate business bank account?
Yes, it is recommended that small business owners in Massachusetts have a separate business bank account to separate their personal and business finances.
Does the location of the small business bank in Massachusetts matter?
For convenience purposes, the location of the business bank in Massachusetts may matter to small business owners depending on their location.
Can small businesses in Massachusetts apply for loans with national banks or do they need to use local banks?
Small businesses in Massachusetts can apply for loans with national banks or local banks depending on their preference and eligibility criteria.
What documents are needed to open a business bank account in Massachusetts?
Documents needed to open a business bank account in Massachusetts may include a business license, Employer Identification Number (EIN), and government-issued identification.
Are there any fees associated with business checking accounts in Massachusetts?
Fees associated with business checking accounts in Massachusetts may vary depending on the bank and account type.
Can small business owners in Massachusetts access online banking services?
Yes, many small business banks in Massachusetts offer online banking services, including mobile apps for easy access.
What should small business owners in Massachusetts look for when choosing a bank?
When choosing a bank in Massachusetts for their small business, owners should consider the bank’s reputation, fees, loan options, and convenience.
What are some common business loans offered by small business banks in Massachusetts?
Small business banks in Massachusetts may offer loans such as SBA loans, commercial mortgages, and lines of credit to eligible small businesses.
Are there any small community banks in Massachusetts that offer startup loans?
Yes, community banks such as Cambridge Trust offer startup loans for small businesses in Massachusetts.
Is it easier for small businesses to get loans from local banks in Massachusetts?
Local banks in Massachusetts may be more familiar with the area’s economy and small businesses, making it easier for small businesses to get loans from them.
Do small business banks in Massachusetts offer mobile deposits?
Yes, many small business banks in Massachusetts offer mobile deposits as a convenient way for business owners to deposit checks.
Can small businesses in Massachusetts get help with cash management services from their bank?
Yes, small businesses in Massachusetts can get help with cash management services such as merchant services and wire transfers from their bank.
What types of small businesses in Massachusetts do banks typically work with the most?
Banks in Massachusetts typically work with a range of small businesses including retail shops, restaurants, and professional service firms.
Can small businesses in Massachusetts get help with payroll services from their bank?
Yes, small businesses in Massachusetts may be able to get help with payroll services such as direct deposit and tax payments from their bank.
What benefits do small businesses in Massachusetts get from using a bank instead of a credit union?
Banks may offer a wider range of business-focused services and loan options than credit unions, making them a better option for some small businesses in Massachusetts.
Are small business loans offered by Massachusetts banks subject to state regulations?
Yes, small business loans offered by banks in Massachusetts may be subject to state regulations depending on the type of loan.
Can small businesses in Massachusetts get loans if their credit score is low?
Small businesses in Massachusetts with a low credit score may have difficulty getting loans, but it may still be possible with specific loans and lenders.
Can small businesses in Massachusetts get help with cash flow forecasting from their bank?
Yes, small businesses in Massachusetts may be able to get help with cash flow forecasting to better manage their finances from their bank.
Are loans from local Massachusetts banks more likely to have better interest rates?
Local Massachusetts banks may offer competitive interest rates for small business loans compared to national banks.
Can small businesses in Massachusetts apply for loans for marketing and advertising?
Yes, small businesses may be able to apply for loans for marketing and advertising from their bank in Massachusetts, depending on their eligibility.
Can small businesses in Massachusetts use business credit cards offered by their bank?
Yes, small businesses may be able to use business credit cards offered by their bank in Massachusetts to better manage their expenses.
Are personal guarantees required for small business loans in Massachusetts?
Personal guarantees may be required for small business loans in Massachusetts, depending on the lender and loan criteria.
Can small businesses in Massachusetts get help with retirement planning and benefits from their bank?
Yes, small businesses in Massachusetts may be able to get help with retirement planning and benefits from their bank through options such as 401(k) plans.
Are there any grants or tax incentives for small businesses in Massachusetts that banks can help with?
Yes, banks in Massachusetts may be able to help small businesses access grants and tax incentives such as the New Markets Tax Credit, depending on their eligibility.
Do small business banks in Massachusetts offer overdraft protection for business accounts?
Yes, many small business banks in Massachusetts offer overdraft protection options for business accounts to help manage cash flow.

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Conclusion

As Massachusetts, also known as The Bay 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 Massachusetts economy.

When looking for the best small business loans in Massachusetts, it’s essential to consider your unique needs and financial situation. Whether you’re forming a Massachusetts LLC or growing your existing LLC in Massachusetts, 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 Massachusetts.

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