Best Small Business Loans in Michigan 2024: Finest Selection

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Best Small Business Loans in Michigan

In 2023, the landscape for small business loans in Michigan 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 Michigan 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 Michigan. Let LLCBase guide you through the exciting journey of setting up your business – we’ve got your back every step of the way.

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 Michigan. 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 Michigan 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 Michigan

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

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

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

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

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

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

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

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

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

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

FAQs

What are the best small business banks in Michigan?
Some of the best small business banks in Michigan include Comerica, Huntington Bank, Flagstar Bank, and Chemical Bank.
Is it important to choose a bank in Michigan over a bank from another state?
It can be beneficial to choose a bank in Michigan as they may have more knowledge of the local market and understand your unique business needs.
What types of businesses can benefit from using small business banks in Michigan?
Any type of small business, including startups, established companies, and sole proprietors, can benefit from using small business banks in Michigan.
Does Huntington Bank have branches in Michigan?
Yes, Huntington Bank has many branches throughout Michigan.
What types of small business loans does Flagstar Bank offer in Michigan?
Flagstar Bank offers a variety of small business loans, including term loans, lines of credit, and SBA loans.
Can small business owners in Michigan access online banking services?
Yes, almost all small business banks in Michigan provide online banking services to their customers.
What factors should small business owners in Michigan consider when choosing a bank?
Small business owners in Michigan should consider the bank’s location, fees and charges, available services, and reputation when choosing a bank.
Are there any grants for small businesses available through Michigan banks?
Some Michigan banks offer grants and loans specifically for small business owners, such as the Comerica Charitable Foundation.
What is the minimum credit score required to qualify for small business loans in Michigan?
The minimum credit score required to qualify for small business loans in Michigan varies by bank and loan type.
How can small business owners in Michigan qualify for SBA loans?
Small business owners in Michigan must meet the SBA’s eligibility criteria, such as having a strong credit history and sufficient collateral, to qualify for SBA loans.
Does Chemical Bank offer mobile banking services for small business owners in Michigan?
Yes, Chemical Bank offers mobile banking services for small business owners in Michigan.
Can small business owners in Michigan get access to business credit cards through their bank?
Yes, small business owners in Michigan can typically get access to business credit cards through their chosen bank.
What types of fees do small business owners typically face when using banks in Michigan?
Small business owners may face fees for account maintenance, transaction processing, and overdrafts when using banks in Michigan.
Are there any specialized small business banking services offered in Michigan?
Some Michigan banks offer specialized services, such as equipment financing, merchant services, and cash management.
What makes Comerica a good choice for small business banking in Michigan?
Comerica has a strong reputation for supporting small business owners in Michigan, with a dedicated team of business bankers available to help every step of the way.
Does Huntington Bank offer online account opening for small business owners in Michigan?
Yes, Huntington Bank allows small business owners in Michigan to open accounts online.
Can chemical bank help small business owners in Michigan with cash flow management?
Yes, Chemical Bank offers cash management services to help small business owners in Michigan manage their cash flow more effectively.
Does Flagstar Bank offer business credit cards for small businesses in Michigan?
Yes, Flagstar Bank offers business credit cards for small businesses in Michigan.
What sets small business banking apart from personal banking services?
Small business banking often offers specialized services, such as merchant services and business loans, that are tailored to the unique needs of small business owners in Michigan.
What type of online tools does Huntington Bank offer for small business owners in Michigan?
Huntington Bank offers a variety of online tools for small business owners in Michigan, including online banking and financial management tools.
Are there banking options tailored to certain industries in Michigan?
Some Michigan banks offer specialized services for certain industries, such as manufacturing or health care.
What is the best small business checking account in Michigan?
It depends on the individual needs of a small business owner, as each bank offers different benefits and features with their checking accounts.
What is the difference between a checking account and a savings account for small businesses in Michigan?
A checking account is mainly used for everyday transactions, while a savings account is typically used for long-term savings goals.
How can small business owners manage their finances with business banking apps from Michigan banks?
Michigan bank business banking apps allow small business owners to view account balances, deposit checks, transfer funds, and even pay bills.
What is the process for opening a small business banking account in Michigan?
The process for opening a small business banking account in Michigan includes filling out an application, providing legal documents, and meeting any necessary eligibility requirements.
How can small business bank customers benefit from attending banking industry events in Michigan?
Small business customers can learn about new products and network at banking industry events in Michigan, while banks can identify the latest trends in small business banking.
How can Michigan banks help small businesses fill staffing needs?
Many Michigan banks offer staffing solutions as part of their small business banking packages.
Does Flagstar Bank offer business credit lines for small businesses in Michigan?
Yes, Flagstar Bank offers business credit lines for small businesses in Michigan.
Does Flagstar Bank offer business loans in Michigan?
Yes, Flagstar Bank offers business loans for small businesses in Michigan.
Does Huntington Bank provide online banking services for small businesses in Michigan?
Yes, small businesses in Michigan can access a wide range of online banking services through Huntington Bank.
What types of small business loans does Chemical Bank offer in Michigan?
Chemical Bank offers traditional term loans, SBA loans, commercial real estate loans, and equipment financing for Michigan small businesses.
Are there any community banks in Michigan that specialize in small business banking?
Yes, community banks like Greenstone Farm Credit Services specialize in providing financial services to rural Michigan small businesses in the agriculture industry.
Does PNC Bank have branches in Michigan that cater to small businesses?
Yes, PNC Bank has many branches in Michigan that offer comprehensive small business banking services.
Do Fifth Third Bank and TCF Bank provide small business banking services in Michigan?
Yes, both Fifth Third Bank and TCF Bank operate in Michigan and offer small business banking services.
Are there any credit unions in Michigan that focus on small business banking?
Yes, Michigan State University Federal Credit Union offers a suite of financial products specifically designed for small businesses.
Is online banking a good option for small businesses in Michigan?
Yes, online banking can be a convenient option for small businesses in Michigan that need to manage their finances remotely.
What are some of the benefits of working with a small business bank in Michigan?
Some of the benefits of working with a local small business bank in Michigan include personalized service, local expertise, and a better understanding of the local market.
Does Chase Bank offer small business banking services in Michigan?
Yes, Chase Bank has several branches in Michigan and provides a variety of banking services for small businesses.
Can small businesses in Michigan access commercial real estate financing through a local bank?
Yes, many local banks in Michigan, such as Independent Bank, offer commercial real estate financing options for small businesses.
How important is it to work with a Michigan small business bank that understands the local economy?
It is very important to work with a small business bank in Michigan that understands the unique challenges facing the local economy and has a vested interest in supporting the state’s small businesses.
Can small businesses receive help from Michigan-based non-profits with their banking needs?
Yes, there are a number of non-profit organizations in Michigan, such as the Michigan Small Business Development Center, that provide assistance with small business banking needs.
What is the best way to find a small business bank in Michigan?
The easiest way to find a local small business bank in Michigan is to do an online search or ask for recommendations from other businesses in the community.
What is a treasury management service and how can it benefit a small business in Michigan?
A treasury management service is a suite of cash management solutions that can help small businesses in Michigan optimize their financial operations, improve cash flow, and reduce costs.
Does LinkedIn offer a platform for small businesses in Michigan to connect with local banks?
Yes, LinkedIn is a popular platform for small businesses in Michigan to connect with local banks and other financial service providers.
What are the benefits of opening a business checking account with a community bank in Michigan?
Opening a business checking account with a community bank in Michigan can provide small business owners with personalized service, lower fees, and a better understanding of the local market.
Is creditworthiness important for small businesses seeking financing in Michigan?
Yes, creditworthiness is a critical factor in securing financing for small businesses in Michigan, as lenders will want to have a good understanding of the borrower’s financial health before extending credit.
How can small businesses in Michigan with bad credit access financing?
Small businesses in Michigan with bad credit may be able to access financing through alternative lenders and borrowing solutions, such as invoice factoring, merchant cash advances, or crowdfunding.
Are small business loans available through crowdfunding in Michigan?
Yes, Individuals, non-profits, and corporations can raise money for small business loans in Michigan through crowdfunding sites such as Kickstarter, Fundable or Crowdfunder.
What documents are required for small businesses in Michigan looking to secure a loan?
Small businesses in Michigan looking to secure a loan will typically be required to provide financial statements, tax returns, business plans, and other significant documentation detailing your financial history
How long does the loan application process typically take with a Michigan small business bank?
The loan application process length differs among banks and financial institutions, but applications can take anywhere from a few weeks to several months for approval.
Are there small business banks in Michigan that offer specialized lines of credit for specific industries?
Yes, several small business banks in Michigan, like Comerica Bank, offers special lines of credit targeted to specific industries, such as auto suppliers, the healthcare industry, and manufacturing firms.
Can small businesses in Michigan access government-sponsored financial programs to access grants and other resources?
Yes, there are several government-sponsored financial programs available for small businesses in Michigan, like Michigan Small Business Relief Program (SBRP), Michigan Small Business Recovery Grant, Michigan Good Food Fund, and others.
How can Michigan-based small businesses get in contact with the Michigan Small Business Development Center?
To get in touch with Michigan Small Business Development Center, small businesses can either visit their website (SBDC Michigan). Beyond the official resource, SBDC Michigan have business consulting services to provide Michigan small businesses confidential, one-on-one counseling and strategic direction to help sharpen their competitive by providing knowledge to move to the next level whether this is launch, distribution scaling, or succession planning in Michigan.
Which small business banks in Michigan have low fees and relatively strict eligibility criteria?
Chemical Bank, Huntington Bank, and Independent Bank have relatively strict eligibility criteria, but they tend to have more attractive business lending amounts with fewer increased fees in Michigan.

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Conclusion

As Michigan, also known as The Great Lakes 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 Michigan economy.

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

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