Top 10 Debt Crowdfunding Platforms to Finance Your Business

#1: Funding Circle

Since its founding in London in 2010 and U.S. launch in 2013, Funding Circle has pioneered peer-to-peer business lending on a grand scale, channeling over $13 billion into more than 100,000 small and medium-sized enterprises globally. The platform offers both secured and unsecured term loans ranging from $25,000 up to $500,000, with fixed annual percentage rates that typically span from 4.99 percent to 27.99 percent and repayment periods of six months to five years. Funding Circle’s underwriting engine stands out for its sector-specific risk modeling, drawing on bank statement analysis, tax filings, and deep industry benchmarks to calibrate the most competitive rate possible for each borrower. Once an application is submitted, most businesses receive a credit decision within 48 hours, and funded loans can land in accounts within one week. Borrowers appreciate the transparent fee structure: a single origination fee, generally between 1.99 percent and 6.99 percent of the loan amount, is deducted at funding, and automatic ACH repayments keep servicing smooth. However, eligibility requirements stipulate at least two years in business and a minimum of $50,000 in annual revenue, excluding very young ventures. Prepayment flexibility comes at a modest cost—a 1 percent fee on the outstanding principal—but most borrowers find this minor compared to the predictable budgeting afforded by fixed rates. An intriguing chapter in Funding Circle’s history unfolded in 2015, when it securitized $5 billion of small-business loans into asset-backed securities for institutional investors, a move that firmly institutionalized peer-to-peer lending and broadened its liquidity base. Today, Funding Circle continues to refine its machine-learning credit models, having reduced default rates by over 15 percent since 2022, and remains the go-to platform for businesses that meet its criteria and seek structured, leading-edge debt financing.

#2: LendingClub Business

LendingClub made its name in 2006 as the first peer-to-peer lender for consumers and branched into business financing in 2014, quickly becoming a formidable presence with more than $5 billion in annual small-business originations by 2021. Its dual offerings—unsecured lines of credit up to $300,000 and term loans as large as $500,000—serve a wide variety of cash-flow scenarios. Loan APRs on both products range from roughly 8 percent to 25 percent, based on a blend of FICO scores, business revenue, and proprietary cash-flow analytics. What sets LendingClub Business apart is the speed and simplicity of its process: prospective borrowers can prequalify in minutes via a quick online form, and fully funded loans often arrive in their bank accounts within three business days. The lines of credit feature variable rates and revolve just like a credit card, giving seasonal businesses the agility to draw as needed, while fixed-term loans suit longer-term expenditures such as equipment purchases or facility renovations. Borrowers enjoy no prepayment penalties, a robust dashboard that integrates seamlessly with accounting platforms like QuickBooks for real-time cash-flow visibility, and the peace of mind that comes with transparent origination fees of 1 percent to 6 percent, deducted from the disbursed amount. Yet, a minimum personal credit score of 680 is required, potentially excluding entrepreneurs with lower FICO ratings, and those fees can substantially reduce the net proceeds on smaller loans. In 2023, LendingClub further expanded its capacity by launching an institutional investor program that sells slices of business loans to banks and hedge funds, broadening access to capital and subtly driving down borrower rates. For small-business owners who need both rapid access to working capital and the flexibility to manage financial peaks and valleys, LendingClub Business offers a well-honed, digitally native solution.

#3: Kickstarter

Kickstarter has long been synonymous with rewards-based crowdfunding since 2009, where backers prepay for innovative projects—artisanal goods, tabletop games, high-tech gadgets—in exchange for tiered rewards. In 2022, the platform introduced “Kickstarter Capital,” a pilot program blending its proven product-presale engine with short-term convertible notes to fuel business growth. Now, entrepreneurs can raise funds by offering 6-month debt instruments at interest rates near 5 percent, converting into equity at a 15 percent discount to future priced rounds, all while securing pre-order pledges that validate market demand. Minimum investments begin at $500, ensuring a degree of seriousness among lenders, and companies benefit from Kickstarter’s immense community—now over 21 million backers strong—who are already primed to support new ventures. This hybrid approach transforms the typical campaign page into a dual fundraising mechanism: supporters can commit to purchasing a finished product at full price or lend capital at favorable debt terms to accelerate development. Borrowers gain early revenue, real-time market feedback, and a direct channel to future customers, while backers enjoy the upside of capped interest plus the first dibs on limited-edition rewards. The major drawback is the inherent dilution risk when notes convert to equity, and businesses must balance marketing debt offerings alongside product promotion. The inaugural Kickstarter Capital success story arrived swiftly—a board-game sequel raised $100,000 in convertible notes within 48 hours, showcasing how seamlessly rewards and debt can coexist. As this model matures, Kickstarter continues to refine its debt-underwriting guidelines, employing basic credit screening and project viability assessments to maintain high repayment rates and foster trust among its creative community.

#4: Indiegogo

Since its 2008 inception, Indiegogo has stood alongside Kickstarter as a leader in rewards-based crowdfunding, but in 2023 it unveiled “InDemand Capital,” a debt extension that enables ongoing or post-campaign ventures to raise revenue-share notes up to $200,000. Under this model, entrepreneurs commit to repaying a fixed 3 percent of monthly sales until reaching a multiple—typically 1.3 times the original amount—while continuing to fulfill product pre-orders and engage backers. Minimum note purchases start at $250, attracting both super-fans and smaller investors who want skin in the game. Indiegogo’s global footprint—crossing more than 235 countries and territories—allows international backers to participate without currency conversion hurdles, broadening the capital pool. The revenue-share structure aligns company success with investor returns, smoothing cash-flow pressure during lean months and accelerating repayment when sales spike. However, the total repayment sum is tied to performance, so in slower sales periods the note may extend longer than expected, creating uncertainty for both parties. Platform and payment processing fees can approach 10 percent of funds raised, which entrepreneurs must account for in their budgets. A compelling example from 2024 involved a smart-home gadget campaign that launched InDemand Capital mid-stream, raising $150,000 in note financing and completing full repayment in seven months thanks to strong holiday sales. As Indiegogo continues to refine its debt offering—adding clearer disclosures, milestone-based tranche releases, and automated sales tracking—it presents a powerful hybrid venue where rewards-based momentum seamlessly feeds structured debt capital.

#5: Wefunder

Wefunder emerged in 2012 as a trailblazer under Title II of the JOBS Act, democratizing startup finance by opening equity crowdfunding to accredited and non-accredited investors alike. In 2019, it broadened its scope by adding debt instruments, giving entrepreneurs access to convertible notes and innovative revenue-share notes within the same campaign. Its convertible notes typically mature in six to eighteen months, carry interest rates between 5 percent and 12 percent, and convert at a predetermined discount to future priced equity rounds, allowing backers to share in upside if the company succeeds. Alternatively, businesses can issue revenue-share notes that repay a fixed percentage of monthly sales until reaching a specified cap, combining the discipline of debt with the flexibility of sales-linked repayment. Minimum investments start at a remarkably low $100, ensuring broad participation, and Wefunder’s automated SPV (special purpose vehicle) structure streamlines K-1 distributions, tax filings, and payment remittances via ACH. A key attraction is the platform’s community engagement suite—live Q&A sessions, regular milestone updates, and built-in social sharing tools—that turns every lender into a stakeholder and brand ambassador. Borrowers, however, must carefully manage the risk of dilution upon note conversion and the variable cash-flow demands of revenue-share payments. A standout success story occurred in 2023 when a Portland craft brewery raised $250,000 in revenue-share notes and repaid investors in just eight months, demonstrating how local businesses can tap a national base of mission-driven lenders. By 2024, Wefunder had originated over $50 million in debt deals across more than 200 startups, cementing its reputation as a versatile all-in-one hub for hybrid crowdfunding.

#6: Kiva

Kiva was founded in 2005 with a mission to extend microloans to entrepreneurs in developing economies, and it expanded into U.S. small business lending in 2018 through partnerships with community organizations. Unlike most for-profit platforms, Kiva offers zero-interest loans up to $15,000 with repayment terms ranging from six months to five years, empowering founders who might otherwise be shut out by high-interest alternatives. Applicants work with local field partners—nonprofits, credit unions, and community development financial institutions—that vet creditworthiness based on character references, business plans, and cash-flow projections rather than solely on credit scores. Once a loan request goes live, Kiva’s global network of individual backers pledges in increments as small as $25, collectively funding the entire loan. Borrowers receive the full amount once 100 percent of the fund is raised, often within 24 to 72 hours, and begin repayments to Kiva, which then recycles capital back into the system for new entrepreneurs. The absence of interest charges is Kiva’s signature advantage, reducing financial burdens and freeing cash flow for growth initiatives. Entrepreneurs also gain invaluable exposure to a community that celebrates their success stories. Nevertheless, the model relies on philanthropic contributions to cover defaults, which, while rare, do occur, and the maximum loan size may not meet the needs of businesses seeking larger growth capital. Since its first $27 loan to a shopkeeper in Ecuador, Kiva has crowdfunded $1.8 billion across 90 countries, maintaining a remarkable 97 percent repayment rate—a confirmation to the power of zero-interest community lending.

#7: StreetShares

StreetShares launched in 2014 with a mission to serve veteran-owned small businesses, quickly building a marketplace where military service and entrepreneurship intersect. It extends term loans from $5,000 to $250,000 with annual percentage rates between 7 percent and 30 percent, repayable over one to five years, and launched an invoice factoring service in 2019 that advances 70 percent to 90 percent of outstanding receivables for a modest fee. Its underwriting process blends personal and business credit metrics with military service as a character indicator, giving veteran entrepreneurs an edge in securing favorable terms. StreetShares fosters a tight-knit community by facilitating veteran investors to fund veteran-led ventures, creating a cycle of mutual support and mentorship. Borrowers benefit from reasonable minimums, flexible invoice financing that smooths cash-flow peaks and valleys, and access to advisory networks of seasoned business leaders. The primary drawback is slightly elevated rates for non-veteran owners and factoring fees of 1 percent to 3 percent on advanced invoices. In 2022, StreetShares made history by securitizing $100 million of veteran business loans—the first asset-backed security of its kind—thereby opening institutional capital channels and validating its underwriting approach. By 2025, it had funded more than $200 million in loans and advances, underscoring how mission-driven debt crowdfunding can uplift a dedicated community.

#8: Fundbox

Founded in 2013, Fundbox specializes in rapid, technology-driven working capital solutions, offering invoice financing and revolving lines of credit up to $150,000, priced with simple fees rather than traditional APR. Businesses connect their accounting software—QuickBooks, Xero, or FreshBooks—and Fundbox’s algorithms instantly evaluate outstanding invoices or cash-flow patterns to approve credit, often within one business day, with funds delivered to the borrower’s bank account in as little as 24 hours. Draws on the credit line can be repaid over 12 or 24 weeks, and Fundbox introduced a business debit card in 2020 to streamline everyday expenses against the credit facility. The combination of near-instant access, no personal guarantees for qualifying applicants, and transparent pricing—fees typically range from 4 percent to 8 percent per 30-day draw—makes Fundbox an attractive lifeline for companies facing seasonal lulls or awaiting large customer payments. However, effective APR can climb significantly for longer-term draws, and maximum advances are limited by invoiced amounts or cash-flow assessments. By 2024, Fundbox had extended $4 billion in financing to over 200,000 businesses, reflecting strong demand for on-demand credit lines powered by sophisticated data analytics.

#9: Biz2Credit

Since 2007, Biz2Credit has combined digital convenience with access to traditional and government-backed financing, offering term loans from $10,000 to $250,000 at rates of roughly 6 percent to 24 percent and SBA 7(a) loans up to $350,000 near 8 percent plus guaranty fees. Its Credit Pro® engine evaluates bank transactions, tax returns, and merchant-processing statements to prequalify borrowers and match them with an expansive network of banks and alternative lenders. Dedicated loan specialists guide applicants through each option, ensuring clarity on origination fees—usually 2 percent to 4 percent—and funding timelines that vary from a few days for alternative loans to 30–45 days for SBA approvals. Biz2Credit’s dual-track model accommodates both fast-growth startups seeking quick capital and risk-averse owners pursuing government-backed stability. The key advantage lies in delivering multiple solutions under one roof, though borrowers must weigh the longer approval process for SBA loans and additional fees. In 2023, Biz2Credit originated $1 billion in loans and introduced a CEO roundtable series to share best practices on debt management. By 2025, its blend of digital efficiency and human expertise has supported thousands of small businesses in securing the right debt structure for their stage of growth.

#10: Honeycomb Credit

Since its 2017 inception, Honeycomb Credit has provided Main Street businesses—cafés, breweries, boutiques—with revenue-share notes up to $250,000, enabling community members to invest directly in local enterprises. Repayments are tied to daily credit-card sales, with a fixed percentage of each transaction allocated toward paying down principal plus a small premium, usually resulting in a total repayment multiple between 1.2× and 1.5× the original amount. This flexible structure aligns payments with actual revenue, easing pressure during slow seasons and accelerating repayment in busy quarters. Investors appreciate the community-driven approach and the POS integration that automates payments, while business owners value the absence of rigid interest schedules. Drawbacks include uncertainty over the ultimate duration of the note if sales flatten, and the potential for higher overall cost compared to traditional term loans. A standout case in 2023 involved a San Diego brewery that raised $125,000 on Honeycomb Credit and repaid investors in eight months despite a slower summer, thanks to the payment model’s adaptability. By 2025, Honeycomb has funded over $25 million in projects across small towns and expanded into municipal financing, proving that revenue-share debt can become a powerful engine for community-led economic growth.