Best Emergency Business Loans in November 2024

Emergency business loans are meant to provide fast funding to cover unexpected expenses.

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Emergency business loan lenders at a glance

Bluevine: Best Emergency business line of credit

Up to $250,000

7.80% 7.80% for the 6-month term

6 or 12 months

625

12 months

Pros
  • Revolving funding
  • Lower minimum credit score
  • Decent funding cap
Cons
  • Longer time-in-business requirement
  • Shorter repayment terms
  • High annual revenue requirement ($40,000/month)

Why we picked it

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If you need revolving funding, from which you can withdraw funds as needed, a business line of credit may be a smart choice. Bluevine is our pick for best emergency business line of credit because of its relatively high funding cap at $250,000 and relatively low minimum credit score requirement.

Still, its long time-in-business requirement and high annual revenue requirement means that it’s only a good fit for more established businesses.

OnDeck: Best emergency business loan for same-day funding

$5,000 to $250,000

27.30% This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.

Up to 24 months

625

12 months

Pros
  • Same-day funding available
  • Shorter time-in-business requirement
  • Lower annual revenue requirement ($100,000/year)
Cons
  • Doesn’t disclose minimum interest rate
  • Higher minimum loan amount
  • Shorter repayment term

Why we picked it

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We chose OnDeck as the best emergency business loan for fast funding because this lender offers you the ability to access funding as soon as the same business day. In addition its lower annual revenue requirement and shorter time-in-business requirement make it accessible for more borrowers.

That said, OnDeck only offers short-term business loans, which means there is a quick repayment timeline. Plus, since they don’t disclose their minimum interest rate, it can be harder to tell how much you’ll pay for the privilege of borrowing.

Fundbox: Best emergency business loan for startups

Up to $150,000

4.66% to 8.99% 4.66% (12 weeks)
8.99% (24 weeks)

12 or 24 weeks

600

6 months

Pros
  • Short time-in-business requirement
  • Lower minimum credit score requirement
  • Competitive interest rates
Cons
  • Low funding cap
  • Shorter repayment terms
  • Next-day funding

Why we picked it

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With a time-in-business requirement of just six months and a minimum credit score of 600, it should come as no surprise that we’re calling Fundbox the best emergency loan for startups. Its attainable eligibility criteria and competitive interest rates are a big bonus to newer businesses.

However, with a funding cap of only $150,000, you won’t be able to borrow as much from Fundbox as you might from other lenders. Plus, the company only offers next-day funding, which may not be fast enough in some emergency situations.

iBusiness Funding: Best emergency business loan for established businesses

$25,000 to $500,000

15.22%

6 to 84 months

660

2+ years

Pros
  • Longer loan terms
  • Higher funding cap
  • Provides a dedicated account manager
Cons
  • Charges an origination fee
  • Offers a two-day funding window
  • Requires collateral and a personal guarantee

Why we picked it

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iBusiness Funding offers loan amounts up to $500,000 and loan terms as long as seven years, which can provide a bit more breathing room for those who need a substantial amount of emergency funds and a longer loan repayment term.

Yet, with its higher minimum credit score of 660 and multi-year time-in-business requirement, it’s likely a better fit for established businesses, who have sufficient resources to meet the collateral and personal guarantee requirements.

Fora Financial: Best emergency business loans for borrowers with bad credit

$5,000 to $1,500,000

10% for a one-year term This provider offers loans with factor rates. Factor rates have been converted to interest-rates for a one-year term using the methodology explained here; the starting interest rate may be higher with shorter-term loans.

4 to 18 months

570

6 months

Pros
  • Low minimum credit score requirement
  • Short time-in-business requirement
  • High funding cap
Cons
  • Lists a factor rate instead of simple interest
  • Charges an origination fee
  • Higher annual revenue requirement ($180,000/year)

Why we picked it

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Fora Financial’s minimum credit score of just 570 makes it a smart choice for borrowers who need access to bad credit business loans. Its short time-in-business requirement and high borrowing cap of $1,500,000 may make this option even more appealing.

However, borrowers should be aware that interest rates expressed as factor rates are often higher than those advertised as simple interest, so you may pay more for the privilege of borrowing. Plus, Fora charges an origination fee of $300 or 3.00% of the loan amount, whichever is higher. That fee is on the heftier side.

Small Business Administration (SBA) Economic Injury Disaster Loans: Best SBA loan option for emergency funding

$2,000,000

Not to exceed 4.00%

Up to 360 months

Score must be considered “acceptable” by the SBA

N/A

Pros
  • No formal time-in-business requirement
  • Competitive interest rates
  • High funding cap
Cons
  • Most loans require collateral
  • Longer funding times
  • SBA inspection required

Why we picked it

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The U.S. Small Business Administration (SBA) offers a few different kinds of disaster loans in an effort to help small business owners in federally declared disaster areas. In particular, the Economic Injury Disaster Loan (EIDL) is meant to cover working capital expenses, such as rent, utilities or fixed debt payments.

This loan is meant to help those who may not otherwise qualify for funding and comes with some unique benefits, such as capped interest rates, the opportunity to defer interest charges for up to a year and loan amounts up to $2,000,000. At the same time, though, the funding times may be longer for SBA loans than other lenders and you may be subject to additional requirements, like an SBA inspection.

What is an emergency business loan?

An emergency business loan is a form of small business loan that is meant to provide you with fast funding to cover unexpected expenses during periods of economic difficulty.

Many of these loans are offered by online lenders, who tend to have shorter funding timelines than more traditional financial institutions.

Notably, the federal government also provides its own form of emergency business funding. However, this funding is reserved for individuals whose businesses are located in federally declared disaster areas.

Types of emergency business loans

Luckily, when you need funding in a hurry, there are a few different financing options available to you:

Business term loans

Business term loans are the most common form of emergency funding. These loans give you access to the funds you need in one lump sum. Then you’ll repay that amount over time through a series of regular payments.

Short-term business loans and long-term business loans function similarly. In this case, the major difference is the length of their repayment schedules.

These loans are offered by both traditional banks and online lenders. Traditional banks tend to have stricter qualifying standards and longer funding times than their online counterparts. However, they also typically offer better interest rates.

In contrast, online lenders may be able to deposit funds into your account sooner, but you may pay more in interest charges over the life of the loan.

Business line of credit

Like a credit card, a business line of credit allows you to borrow money for expenses up to a fixed amount. You’ll only pay interest on the amount that you borrow. Then, once you pay down your balance, you’ll be able to borrow against your credit limit once again.

In particular, working capital lines of credit may be a good choice for providing emergency funding. These lines of credit allow you the flexibility to cover many different types of operating expenses.

Invoice factoring

Invoice factoring allows you to sell your unpaid invoices to a third-party company in exchange for an advance payment on the amount due. When the invoice is paid in its entirety, the invoice factoring company will send you the remainder of your payment, minus any transaction fees.

Merchant cash advances

Meanwhile, merchant cash advances (MCAs) allow you to take a lump sum advance payment against future sales. Typically, the payment represents a portion of your daily or weekly credit card sales. However, it’s important to note that while this method can be a way to access fast funding, it can be an expensive form of borrowing.

How to get an emergency business loan

The exact process you’ll follow to apply for a business loan can vary by lender. Here is a general overview of the process.

  1. Figure out how much you’ll need. First, you’ll want to get a sense of the total cost of your emergency to determine how much you’ll need to borrow. You can use our business loan calculator to estimate how well different loan amounts will fit into your budget,
  2. Determine your eligibility. Every lender sets its own business loan requirements. That said, loan approval is usually based on factors like your annual revenue, your overall time in business and your creditworthiness, which is determined by both your personal credit score and your business credit score.
  3. Gather the necessary documentation. Most lenders require you to provide supporting documentation before they will issue an approval decision. Gathering this information before you submit your application can help speed up the process significantly. While every lender is different, you’ll likely need to provide a business plan, personal and business bank statements, business tax returns, and any applicable business licenses.
  4. Shop around for a loan. Once you have all your information in hand, gather loan offers from a few different lenders. Be sure to give each lender the same information so that you’re able to make an apples-to-apples comparison once you have the loan offers in hand.
  5. Apply for the loan. Submitting a business loan application is often a quick process. It’s usually automated and can often be done online. However, a loan officer will typically reach out to you for more information once they’ve had a chance to review your initial submission form.

How to compare emergency business loans

When you’re ready to compare loan offers, be sure to evaluate the following factors in order to find the loan option that works best for you.

Interest rate: Business loan interest rates can vary widely between lenders, but they can also significantly impact how much you’ll pay over the life of the loan. Often, the loan offer with the lowest interest rate will give you the best bang for your buck.

Funding time: Where emergency business loans are concerned, short funding times can be especially important. As a result, you may want to choose a lender who promises fast funding in order to get the financing you need as quickly as possible.

Added fees: Some lenders charge added fees, like an origination fee or late payment fee, which can increase your overall cost of borrowing. Be sure to ask what fees each lender charges so that you know what to expect.

Loan amount: While it’s imperative that your loan amount covers the total cost of your emergency, it’s also important to avoid borrowing more than you need. Striking this balance can help ensure that you’re able to repay the loan more comfortably.

Repayment terms: Regardless of how long you have to repay what you’ve borrowed, you’re going to want to make sure that the payments fit into your budget. Doing that due diligence can help significantly decrease the risk of defaulting on the loan.

Extra perks: Some lenders offer extra perks, like providing you with a dedicated account manager or offering a choice of repayment terms.

Our in-depth catalog of small business lender reviews can help you compare viable options before you make your final decision.

Pros and cons of emergency business loans

ProsCons
 Multiple types of business loans can be used to provide emergency funding.

 Many lenders offer same-day or next-day funding options.

 An SBA loan option is available for those who are in federally declared disaster areas.
 Interest rates can be high with some lenders.

 Collateral may be required for a secured business loan.

 Some lenders may have eligibility requirements that make funding inaccessible for startups.

Alternatives to emergency business loans

If an emergency business loan isn’t the right choice for you, consider one of these other financing options instead:

Business credit cards

If you need cash immediately, using a business credit card to cover your expenses may be an option. Eligibility criteria tend to be less stringent for cards than traditional business financing, plus it’s possible to earn perks, like business travel rewards, depending on which card you choose.

Still, credit card interest rates tend to be higher than the rates on traditional business loans, which means you may end up paying more if you’re unable to pay off your balance in full by the time your bill comes due.

Personal loans

If your business isn’t quite established yet and you’re unable to find a startup loan that’s a fit, you may want to consider a personal loan for your emergency financing. Since personal loans are not a form of business financing, they have different eligibility criteria that are based largely on your credit score and debt-to-income ratio.

As a result, it may be easier to qualify for a personal loan. Still, it’s important to recognize that you, rather than your business, would be personally liable for repayment.

Family and friends

When you’re really in a bind and can’t qualify for more traditional forms of financing, it can be worth asking your loved ones to invest in your business. Many business crowdfunding platforms can assist with this venture. However, it’s important to note that many platforms charge a fee for using their service.

How we chose the best emergency business loans

We reviewed the leading small business lenders to determine the overall six best emergency business loan loans. To make our list, lenders must meet the following criteria:

  • Minimum time in business of two years or less
  • Minimum credit score of 660 or lower
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

Best emergency business loan summary

Frequently asked questions

Getting an emergency business loan involves following the same process you would when applying for any other type of business financing. You have to fill out an application, submit supporting documentation and wait for loan approval.

Fortunately, the approval process is automated for many online lenders, with funds disbursement sometimes as soon as the same business day.

The fastest way to get a business loan is to look for a lender who offers fast funding. If you don’t see what you need in the list above, our roundup of quick business loans may be of assistance.

It’s possible to get business funding in 24 hours or less. Online lenders are the most likely to offer this service, while banks and credit unions often take several days to grant loan approval. Even though SBA disaster loans have a quicker funding timeline than traditional SBA loans, the process can take a few weeks.