$25,000 Business Loans

Can you get a business loan for $25,000?

Yes, you should be able to get a business loan for $25k, though it depends on the lender and a few other factors. How you get that loan may vary depending on your business’ and personal financial health. We’ll explain the different options available to you below.

How to get a $25,000 business loan

There are different options as to where you can get a $25,000 business loan and one may be better than another depending on your financial situation. For some it may be best to get one from an online lender, while others may get a better deal at a community bank.

Online lenders

Online lenders are your best option if you don’t necessarily fulfill all the traditional requirements or qualifications for a business loan. For example, if you aren’t a business with a longer history, need the money fast, and have a low credit score, an online lender will often be able to help you. Online lenders are quick to get you the money (sometimes even the next day), lend to those with lower credit scores, and are open to younger businesses.

Microlenders

Whether or not you’re an ideal candidate for a business loan, microlenders are notoriously difficult to work with in terms of larger business loans. Occasionally, some offer business loans up to $25,000. They typically don’t lend out money though to newer businesses or those with lower credit scores.

Community banks

For those who need the money quickly, community banks are not the right fit. Getting the money can take a few weeks. However, you do also get access to amazing financial advice which you aren’t necessarily able to get elsewhere.

National banks

If you’re a small or medium-sized business, large banks will not likely be able to help you or be interested in offering you a business loan. Other options mentioned in this guide may be better for you as a small business owner.

Credit Unions

As a member of a credit union, you’re going to be able to get a $25,000 business loan much more easily than a non-member. Non-members must first get a membership in order to even pre-qualify. However, this is often difficult to do.

How much does a $25,000 business loan cost?

There’s no straightforward answer here as to how much a $25k business loan will end up costing you. There are so many factors that come into play like your APR, what your loan terms are or the time frame you’re given to pay the loan back, whether or not you are paying monthly minimum payments, or if you’re paying more, and if there are any additional fees.

Comparing rates and shopping around is crucial. It’s also essential that you know your loan terms and really understand them before deciding on a particular lender. Something to keep an eye out for is whether or not a lender offers a fixed rate in lieu of interest. Sometimes this can be more cost-effective than having a more traditional business loan with interest.

But whatever you end up deciding - always do your research!

Even though there’s no way to give you a concrete number without having any details, you can get a better idea by using a loan calculator online that will give you a rough estimate of your total loan cost.

When is it a good idea to take out a $25,000 business loan?

When contemplating if you should or shouldn’t take out a business loan, or a loan of any kind really, it’s important to consider whether or not you’ll be able to make the monthly payments. If the answer isn’t a resounding and confident yes, then you might want to think twice before filling out loan applications.

If monthly payments may be a struggle for you, taking out a smaller loan or waiting until your business is having higher revenue months may be the best option at this time.

Sometimes however, there are so many pressing business needs that could be met if the finances were there that a business loan truly is necessary. Maybe by having this business loan, you’ll be able to purchase something that will fast-track your business to success and raise your revenue and profits immensely. It’s still a risk one has to take though, so knowing whether or not you can afford the monthly payments for a $25,000 business loan is important.

What is the minimum credit score required for a $25,000 business loan?

The short answer is it varies. Depending on the lender you choose to work with, the minimum credit score will differ. Online lenders, for example, are often less picky when it comes to credit scores and will work with people with a personal credit score as low as 500.

Can I get a $25,000 business loan if I have good credit?

If you have good credit, then that’s already a big part of the requirements you’ve fulfilled to qualify for a $25,000 business loan. However, there are many other factors that come into play when deciding who will be approved and who won’t. Business loans have different requirements than personal loans. Instead of looking at your income, a business loan looks at how much your business is making annually and every month.

So if you have good credit, that’s a great start. If you also have the minimum qualifying revenue, then you’re golden! An added bonus is if you’ve had your business for a longer period of time. How much lenders require in monthly revenue varies, but the average amount is about $10,000 a month. Some lenders may make some exceptions there for a $50,000 business loan.

Can I get a $25,000 business loan if I have bad credit?

If you have all the other requirements but poor credit, you may still qualify for a $25,000 business loan. For example, if your monthly revenue exceeds the minimum requirement and you’ve owned your business for a long time, you’re much more likely to get approved despite the bad credit.

An additional option here is if you have a business partner with good credit to have them apply instead of you. Then you’re more likely to get the loan.

Another factor to keep in mind is that online lenders and community banks will often work with you despite bad credit. Community bankers may weigh other promising financial aspects instead of your credit score when asked.