Best Business Loan 2025 - Compare Rates, Terms, and Lenders
Written by: Carsten Leth
Last updated: January 13, 2025
Who Offers the Best Business Loans in 2025?
- We have evaluated over 20 000 loan proposals and analyzed data from lenders to find the best business loan options for 2025.
- According to our analysis, Marginalen Bank, Aros Kapital, and Froda offer the best business loan options in 2025.
- Marginalen Bank and Aros Kapital provide one of the business loans with the lowest effective interest rates and EU loans for small businesses, meaning lower requirements for personal guarantees and reduced interest rates. Froda offers the fastest payouts and one of the most flexible business loans on the market.
2024 Market Summary
Record High Number of Bankruptcies
2024 was a tough year for many business owners and employees. According to Creditsafe, a record number of 10,141 companies went bankrupt, marking a 23% increase compared to the previous year. Over 30,000 jobs were also lost. The reasons include an ongoing recession, high interest rates, inflation, and reduced purchasing power.
During the COVID-19 pandemic, the government allowed businesses to defer tax payments to ease economic pressure and address immediate liquidity issues. According to Svenskt Näringsliv, a total of 152.9 billion SEK in temporary tax deferrals were granted. Businesses still holding pandemic loans must start repaying in 2024, with full repayment due within three years. This increases the risk of liquidity problems. Companies with outstanding tax deferrals typically have lower solvency, poorer profit margins, and higher bankruptcy risks, contributing to the high number of bankruptcies in 2024.
Creditsafe's CEO, Henrik Jacobsson, predicts that bankruptcies will remain high in 2025 but hopes for an economic recovery during the year.
Impact on Various Industries
Industries such as real estate, car dealerships, and the manufacturing sector were most affected by bankruptcies in 2024, with a significant increase compared to previous years. The retail sector was the only one showing a decrease in bankruptcies, which could indicate some stabilization despite ongoing economic challenges.
Doubling of Company Reorganizations
Another key market trend reflecting businesses' financial struggles is the doubling of company reorganizations. Major companies such as Brödernas, Mathem, and Na-kd filed for corporate reorganization in 2024, showing that the economic situation is impacting not only small and medium-sized businesses but also large corporations.
Fewer Startups
2024 saw a 6% decline in new startups, which were already at low levels compared to historical figures. This decline can be partially attributed to the ongoing recession, making potential entrepreneurs more cautious. There is uncertainty about future economic development, which may cause some to delay starting a new business. High interest rates and difficulty obtaining financing may have discouraged new businesses.
Uncertainty in the Market Affects Business Financing
At Krea, we saw a smaller increase in loan applications in 2024 compared to 2023. Between 2023 and 2024, we saw an 8% increase, whereas between 2022 and 2023, the increase was 35%. The percentage of applications leading to approved loans was also lower in 2024 compared to 2023. We believe this is due to companies being more selective in their financing decisions and lenders becoming more cautious in their offers, reflecting the current economic uncertainty.
New Banks and Lenders in the Market
In 2024, we saw positive developments in the business loan market with newly established lenders and new offers from existing players. Northmill, previously focused on personal loans, expanded its offerings to include business loans. Qred, which registered as a bank last year, now offers business loans with higher amounts. In the invoice financing space, players like Invoier, Treyd, and A.B.S. Factoring launched new solutions. Treyd offers inventory financing without collateral, while Invoier and A.B.S. Factoring pay supplier invoices in full by the due date and give businesses up to 120 days to repay the lender.
A contributing factor to this shift in the business loan market could be stricter regulations introduced in the personal loan market to strengthen consumer protection. The government’s proposed new regulations on credit lending, which include higher requirements for credit assessments and a reduction in the interest rate cap from 40 percentage points to 20, are expected to affect personal loan providers. This could create an incentive for players to focus on the business loan market, allowing lenders to continue growing without being bound by the new restrictions, which could affect profitability in personal loans.
Our Assessment Criteria for the Best Business Loan
We select the best business loan for 2025 based on five criteria. The analysis is based on discussions with our customers and partners, as well as insights from over 20,000 loan proposals over the past year. The evaluation criteria are:
- Flexibility
- Cost
- Personal Guarantee Requirement
- Time to Payout
- Payout Rate
Flexibility
For a business loan to be considered flexible, it should not incur any additional costs or locking effects. The lender should meet the following criteria:
- No setup fee
- No early repayment fee
- No fixed fee model
A business loan without a setup fee allows businesses the freedom to borrow without having to pay an initial fee. Additionally, there should be no cost for early repayment, making it easier for businesses to adjust their payments based on current economic conditions. A fixed fee model results in a higher effective interest rate as the fixed fee remains the same, regardless of how much is repaid, whereas a variable rate decreases as the loan balance decreases.
Lenders that meet all three criteria and thus offer a flexible business loan are Froda and Fortnox.
Cost
To assess which lenders offered business loans with the lowest effective interest rates, we analyzed data from 2024 and the rates that lenders actually offered. The figures represent the average for the year.
The winners in this criterion were the lenders with the lowest effective interest rates.
The most cost-effective business loans in 2024 were offered by Aros Kapital, Marginalen Bank, and Fortnox. Aros Kapital led with an average effective annual interest rate of 10.7% (based on 405 loan offers), followed by Marginalen Bank at 13.6% (based on 1,155 loan offers), and Fortnox at 15.5% (based on 1,395 loan offers).
Personal Guarantee
Lenders typically require one or more key persons in the company to act as personal guarantors for business loans. This is a security measure that is generally required for loan approval. Many business owners want to avoid personal guarantees due to the risk of becoming personally liable if the business goes bankrupt. To address this need, some lenders offer business loans with limited or no personal guarantee requirement.
The winners in this criterion are lenders with the lowest personal guarantee requirements.
Aros Kapital and Marginalen Bank offer EU loans with lower personal guarantee requirements. These loans are supported by the European Investment Fund, enabling businesses to get a loan with less personal risk.
As previously mentioned, Treyd offers invoice financing without a guarantee requirement, making it a flexible option for business owners who want to completely avoid personal guarantee responsibility.
Time to Payout
In recent years, we at Krea have seen a decrease in the time it takes for business financing to be paid out. In 2024, the average time to payout was 6.3 days, an improvement from 7.1 days in 2023 and 8.5 days in 2022.
The winners in this criterion are the lenders who paid out business loans the fastest.
Froda was the fastest lender in 2024, with an average payout time of only 3 days, an improvement from 4 days in 2023 and 9 days in 2022. CapitalBox and Qred were just behind Froda, with payout times of 3.7 and 4.7 days, respectively.
Payout Rate
The final criterion we looked at was payout rate, which refers to how well lenders delivered on the offers they posted on our platform (number of loans paid out / number of chosen loan offers). This is an important aspect because sometimes a loan offer does not materialize for various reasons, such as the lender not conducting a thorough enough credit assessment of the customer.
The winners in this criterion are the lenders with the highest payout rates.
In 2024, the most reliable lenders were Aros Kapital, Marginalen Bank, and Froda. These lenders performed best when it came to delivering on their indicative offers.
Conclusion: What is the Best Business Loan for 2025?
This comprehensive analysis highlights the importance of flexibility, cost, personal guarantee requirements, time to payout, and payout rate when choosing the best business loan in 2025. Based on these factors, businesses can make informed decisions to secure the most favorable loan options for their needs.
Assessment Criteria | Winners | Reasoning |
Flexibility | Froda and Fortnox | Meet all three flexible criteria: no setup fee, no early repayment fee, and no fixed fee model |
Cost | Aros Kapital, Marginalen Bank and Fortnox | The three lenders offering the lowest effective interest rates |
Personal Guarantee | Aros Kapital, Marginalen Bank and Treyd | The lenders offering a lower personal guarantee requirement |
Time to Payout | Froda, CapitalBox and Qred | The lenders that were quickest in disbursing business loans. |
Payout Ratio | Marginalen Bank, Aros Kapital and Froda | The most reliable lenders based on payout ratio |
Marginalen Bank, Aros Kapital, and Froda stand out by winning in three of five criteria, making their business loans the best options for 2025. Marginalen Bank and Aros Kapital offer cost-effective business loans and have options for smaller companies needing financing up to 550,000 SEK. These businesses can apply for an EU loan with lower personal guarantee requirements and a lower interest rate. Froda offers one of the most flexible and fastest business loans on the market, ideal for businesses that prioritize quick payouts and, for example, want the option for cost-free early repayment. All three lenders are also reliable when it comes to actually disbursing indicative loan offers.
Analyses from Previous Years
- In this article, we have reviewed data on business loans from 2024 to determine the best business loan for 2025. You can view our analysis from 2024 below:
Best Business Loan 2024
Find the right financing for your business
Contents
- 2024 Market Summary
- Record High Number of Bankruptcies
- Impact on Various Industries
- Doubling of Company Reorganizations
- Fewer Startups
- Uncertainty in the Market Affects Business Financing
- New Banks and Lenders in the Market
- Our Assessment Criteria for the Best Business Loan
- Flexibility
- Cost
- Personal Guarantee
- Time to Payout
- Payout Rate
- Conclusion: What is the Best Business Loan for 2025?
- Analyses from Previous Years