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Best Small Business Loans in Phoenix, AZ

Aug. 15, 2019, 8:17 p.m.

Business owners in Phoenix choose to take out a business loan for a variety of reasons, including to expand their office or purchase inventory. Choosing the right lender as a partner for your business loan will let you grow your company or get your start-up off the ground. Our partners at ConsumerAffairs researched the best business loans in Phoenix to reach your company’s goals.

Everyone deserves to make thoughtful, informed purchase decisions. The local guides provided on this website are free for consumers. ABC15 may receive compensation from our partners. Learn more.

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#1
RECOMMENDED
Seek Business Capital

Startup Consulting • Business Services

VISIT WEBSITE
CALL SEEK BUSINESS CAPITAL
(844) 587-9906
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#1 MOST POPULAR
Seek Business Capital
Seek Business Capital
Features
  • Funds start-ups & small business
  • Offers mortgage lending services
  • Available in Phoenix
  • Same day funding
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VISIT WEBSITE
CALL SEEK BUSINESS CAPITAL
(844) 587-9906
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#2
Imperial Advance
Imperial Advance
Features
  • Wide variety of finance options
  • Unrestricted funding within 24 hours
  • Available in Phoenix
  • A+ BBB Rating
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VISIT WEBSITE
CALL IMPERIAL ADVANCE
(888) 633-2083
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#3
National Business Capital
National Business Capital
Features
  • A+ BBB rating
  • Approval in 24 hours or less
  • Wide variety of financing programs
  • Available in Phoenix
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VISIT WEBSITE
CALL NATIONAL BUSINESS CAPITAL
(866) 270-5585
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#4
Sprout Financial
Sprout Financial
Features
  • Fast and easy application process
  • Loan decision in three days
  • High approval rates
  • No pre-payment penalties
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Location
5415 E. High St.
Phoenix, AZ 85054
(800) 358-1052
#5
Mountain America Credit Union
Mountain America Credit Union
Features
  • Competitive pricing and structure
  • Use funds for a variety of business needs
  • Use personal property as collateral
  • #1 SBA lending credit union
Read More
Location
805 E. Thunderbird Rd.
Phoenix, AZ 85022
(602) 266-3522
Republic Bank of Arizona
Republic Bank of Arizona
Features
  • M-F: 9am - 5pm
  • Closed Sat and Sun
  • republicbankaz.com
Location
645 E. Missouri Ave., Ste. 108
Phoenix, AZ 85012
(602) 277-2500
Arizona Business Bank
Arizona Business Bank
Features
  • M-F: 9am - 5pm
  • Closed Sat and Sun
  • azbizbank.com
Location
2600 N. Central Ave., Ste. 2000
Phoenix, AZ 85004
(602) 240-2700
Paramount Financial Services
Paramount Financial Services
Features
  • M-F: 8am - 5pm
  • Closed Sat and Sun
  • paramountfinancial.com
Location
5050 N. 40th St., Ste. 380
Phoenix, AZ 85018
(480) 222-0300
MidFirst Bank
MidFirst Bank
Features
  • M-F: 9am - 7pm
  • Sat: 9am - 2pm
  • Sun: 10am - 2pm
  • midfirst.com
Location
3030 E. Camelback Rd.
Phoenix, AZ 85016
(602) 801-5000
BBVA Compass
BBVA Compass
Features
  • M-Th: 9am - 4pm
  • F: 9am - 5pm
  • Closed Sat and Sun
  • bbvacompass.com
Location
2210 Crestmoor Rd., Ste. 1
Phoenix, AZ 85012
(480) 783-6790

How to get a business loan in Phoenix

Phoenix Skyline

Small businesses are a driving force in Phoenix and the rest of Arizona. More than 1 million people, or 44.5 percent of the private workforce, work for small businesses in Arizona, according to the U.S. Small Business Administration.

Small businesses need funding to grow, and business loans are a common way to secure funding for new equipment purchases, marketing or day-to-day expenses.

Whether you’ve owned a business for years or are planning a start-up company, you’ll benefit from the extra funding provided by a business loan. Different business loans are available in Phoenix to fit specific company needs, including:

  • Term loans: A term loan is the most common form of business financing. These loans give businesses funding upfront and are paid back over a predetermined period of time.
  • Business lines of credit: A business line of credit is ideal for short-term financing needs. It works similarly to a credit card, has a predetermined limit and only accrues interest on the funds you use.
  • Equipment financing: Equipment loans are used to purchase equipment for your business. The loan term is equivalent to the expected lifespan of the equipment, which serves as collateral for the loan.
  • Invoice financing: Invoice financing is ideal for businesses with unpaid invoices that need fast cash. The unpaid invoices serve as collateral for the loan.
  • Merchant cash advances: A merchant cash advance provides a lump sum of money. Businesses make payments on the loan by withholding a percentage of its daily sales or by fixed daily or weekly withdrawals from your bank account.
  • U.S. Small Business Administration (SBA) loans: SBA loans are ideal for business owners with profitable businesses and strong credit. This type of loan is typically used to expand or refinance existing debts.
  • Microloans: Microloans are short-term loans that are generally less than $100,000. These are often available from online and alternative lenders.

Short-term loans provide you with the funds you need quickly, sometimes in as little as 24 hours. Long-term loans typically include larger funding amounts and lower interest rates compared to short-term loans, but have a much more rigorous application process.

Lenders in Phoenix will look at a variety of factors when deciding whether a company qualifies for a business loan. These might include how long the company has been in business, the business model, annual revenue and the personal credit history of the borrower.

It is possible to get a loan with bad credit with some lenders in Phoenix. These companies focus on the strength of your company and business model.

Depending on the type of loan, you may also need to provide collateral to secure the loan. Collateral is an asset, like inventory or equipment, that can be seized and sold by the lender if you fail to make your payments. A down payment, usually ranging from 10 to 20 percent, may also be required for certain types of loans in Phoenix.

Most lenders in Phoenix will charge several fees in addition to interest on a loan. The major types of fees associated with business loans include:

  • Origination fee: A fee to cover the cost of processing the loan
  • Prepayment penalty: A fee charged for paying off the balance of your loan before the completion of the agreed term
  • Referral fee: A fee charged by loan brokers for referring you to a lender
  • Packaging fee: A fee used to cover the cost of preparing a loan application to present to a lender

Make sure you understand all the fees and penalties that may apply when you’re comparing loans. By choosing the right lender for your company, you can build a relationship that helps your company grow and expand for years to come.

Seek Business Capital

Seek Business Capital

CALL SEEK BUSINESS CAPITAL

(844) 587-9906 VISIT SEEK BUSINESS CAPITAL

Seek Business Capital’s simple funding criteria allows customers to apply for funding and receive an estimate the same day. The company provides individualized consulting services to find a unique funding solution for your business. Customers can fill out a quick and easy online application on their computer or smartphone.

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Imperial Advance

Imperial Advance

CALL IMPERIAL ADVANCE

(888) 633-2083 VISIT IMPERIAL ADVANCE

Imperial Advance offers flexible loan programs for every financial situation. Customers consult with a loan specialist to determine which type of financing is best for their business and can receive their funds within 24 hours. Customers in Phoenix say Imperial Advance saved their businesses by giving them loans when they needed quick funding.

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National Business Capital

National Business Capital

CALL NATIONAL BUSINESS CAPITAL

(866) 270-5585 VISIT NATIONAL BUSINESS CAPITAL

National Business Capital offers 12 financing options, each specialized to help businesses in any industry. Customers can apply online with a free application and receive financing in as little as 24 hours. The company compares more than 75 specialized lenders in its global marketplace to find the perfect match for each business.

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Sprout Financial

Sprout Financial

Sprout Financial specializes in merchant cash advances and equipment loans. The company’s quick and easy application process allows customers to receive a loan decision within three days of completing the application process. Customers in Phoenix appreciate Sprout Financial’s employees for their friendly customer service and quick response to questions.

Mountain America Credit Union

Mountain America Credit Union

Named the top SBA credit union in the nation, Mountain America Credit Union offers a variety of business loans with flexible financing. The company offers competitive pricing and structure, and customers can use the funds for a variety of business needs. Customers say the lender has great interest rates and friendly employees.

Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.

Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.