How to Get a $10,000 Business Loan to Start or Grow Your Biz (2024)

Getting a $10,000 business loan can be easier than larger amounts, since you pose less risk to the lender. But you might want to steer clear of big banks and look to less-conventional lenders for funding of this size.

Where can I get a $10,000 business loan?

You can get a $10,000 business loan with most types of lenders. However, big banks might not be the best option — these typically fund larger amounts and might not even offer loans of this size. Even some online lenders have funding minimums above $10,000.

Online lenders, microlenders and community development financial institutions (CDFIs) are likely a better bet. Borrowing online might be a particularly good choice if you don’t have a lot of time or resources to spend on your business loan application.

However, if you need $10,000 in startup financing, an online personal loan might be a better choice. Almost all personal loan providers offer loans of that size, and they don’t have minimum revenue or time in business cutoffs. Online lenders like Upstart can get you a loan as soon as the same day you apply. But you’ll need good credit and enough income support repayments to qualify.

Compare $10,000 business loans

Narrow down top business loans by loan amount, rates and requirements to find the best option for your business’s goals. Select Compare for up to four products to weigh their benefits side by side.

How to get a $10,000 business loan

Although each lender has its own process, these steps should help guide your business toward the right loan option:

1. Compare lenders. Start by comparing business loan lenders. Research lenders that offer competitive terms for small business loans.
2. Prepare financial documents. Lenders want to see your business plan and accurate and up-to-date annual revenue projections, bank statements, tax documents and other information that demonstrates your business’s ability to repay a loan.
3. Apply for preapproval. This lets you see your loan’s potential terms before your personal or business credit is officially checked. Not all lenders offer preapproval, but if it’s available, take advantage of it.
4. Review and sign the loan contract. Review your loan contract with your partners and financial advisor to ensure the terms benefit your business.

How much will a $10,000 business loan cost?

How much your $10,000 business loan costs depends on a few factors: the loan term, interest rate and fees.

Typically, $10,000 business loans come with APRs on the lower end since they’re less of a risk to the lender. However, the specific rate you receive depends on your business’s finances and your personal credit score. You can expect to qualify for loan terms on the shorter end — typically from six months to several years.

5 types of $10,000 business loans

From traditional term loans to lines of credit and merchant cash advances, here are five types of financing available in amounts as low as $10,000 so you can access the best loans for quick cash flow in your situation.

1. Business term loan

This straightforward business loan is made to cover one-time expenses. It works by giving your business a lump sum to spend on any legitimate expense, which you repay in installments. For $10,000, you can expect the term to be on the shorter side — around six months to two years.

2. Business line of credit

A line of credit gives your business access to cash as it needs it — up to a credit limit. It’s made to help with ongoing projects like renovations, which can have unpredictable costs.

Depending on the lender, you might pay it off with a minimum monthly repayment, like a credit card. Or you might pay off each draw in installments, like a term loan.

3. SBA microloan

The Small Business Administration (SBA) works with independent lenders to offer government-backed financing for small businesses. Most SBA programs offer funding well over $100,000, except for the Microloan Program, which has an average term loan of $13,000.

Microloans are less common than other types of SBA loans — you might have better luck looking to CDFIs and community banks. They’re generally less expensive than other options but can take a long time to process the application.

4. Equipment and vehicle financing

These term loans are backed by the equipment or vehicle you’re using the funds to purchase, giving you lower rates. How much you can borrow depends on the price of the equipment or vehicle — some lenders will fund up to 100% of the cost, though many recommend at least a 20% down payment.

5. Merchant cash advance

A merchant cash advance is an advance on your business’s future credit card sales. How much you can borrow depends on your business’s monthly revenue, and you pay it back with a percentage of your daily or weekly sales. This option is designed for retailers — particularly those unable to qualify for more traditional business loans. It’s faster than a lot of options but can be expensive.

Compare personal loans for startups

Startups may have an easier time qualifying for a $10,000 personal loan than a business loan — most startup loans are based on the entrepreneur’s income and credit requirements anyway. Select Compare for up to four personal loan providers to weigh factors like rates, loan amounts and credit score cutoffs for each provider.

Bottom line

When it comes to business loans, $10,000 is on the low end. While it might be easier to qualify for than larger amounts, not all lenders offer financing this low. You might have the best luck with local banks, CDFIs and online lenders.

Read our guide to business loans to learn more about your options.

Frequently asked questions

Can I get a $10,000 business loan to start a business?

It’s possible, but most lenders have minimum time-in-business and revenue requirements. You might want to check out our guide to startup loans to learn more about your options.

Can I get a $10,000 business loan with bad credit?

You can, though not all options might be available to you. Your best bet might be working with a CDFI, which typically has less stringent credit requirements than other types of lenders. Merchant cash advances are also typically available to business owners of all credit types.

Can I get an SBA 7(a) loan for $10,000?

Traditionally, SBA 7(a) loans come in much higher amounts. While it has a 7(a) Small Loans Program capped at $350,000, the SBA Microloan Program is generally better suited for loans as small as $10,000.

Other business loan amounts: