Best Short-Term Business Loans in May 2026
A business line of credit from American Express is our top pick thanks to flexible funding and no daily or weekly payments.
- Short-term business loans are best for temporary cash flow gaps, emergency expenses or seasonal slowdowns.
- Repayment terms typically range from three to 24 months.
- Short-term loans may have higher borrowing costs and more frequent repayment schedules than long-term business loans.
| Lender | User rating | Best for | Starting rate | Amount | |
|---|---|---|---|---|---|
|
Business line of credit | 3.00% |
$2k – $250k |
||
|
Fast funding | 35.26% (APR) |
$5k – $400k |
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|
Startups | 4.66% | Up to $250k | ||
|
Large loans | 13.00% |
$5k – $1.5M |
||
|
Borrowers with bad credit | 11.00% |
$25k – $600k |
||
|
Quick approvals | 7.80% |
$1k – $250k |
||
|
Seasonal businesses | 1.20 (Factor rate) |
$10k – $300k |
Best short-term business loans: More details
Best for: Business lines of credit – American Express
- Starting rate
- 3.00%
Total loan fees for installment loans range from: 3% to 9% for 6-month terms; 6% to 18% for 12-month terms; 9% to 27% for 18-month terms; 12% to 18% for 24-month terms. Each draw counts as a separate installment loan. Single-repayment loans will have different rates and terms.
- Open to small businesses with as little as $3,000 in average monthly revenue
- Monthly repayment structure
- No prepayment fees
- Only select customers qualify for loans over $150,000
- Personal guarantee required
American Express is our top pick for a short-term business line of credit because it offers flexible access to funds, relatively low revenue requirements and a monthly repayment structure that may be easier to manage than some competitors. Unlike a traditional term loan, a business line of credit allows borrowers to draw funds as needed instead of receiving a lump sum upfront.
However, only select borrowers qualify for loan amounts over $150,000, and the lowest rates typically require strong credit.
→ Check out LendingTree’s full American Express Business Line of Credit review.
In order to qualify, you’ll need to meet American Express’s criteria of:
- Minimum credit score: 660
- Minimum time in business: 12 months
- Minimum annual revenue: $36,000
Best for: Fast funding – OnDeck
- Starting rate
- 35.26%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
- Same-day funding available
- Quick and easy application process
- May charge an origination fee up to 4.00%
- Relatively high interest rates
- Not available in North Dakota
OnDeck is our top pick for fast funding because it offers same-day funding for line of credit draws of $10,000 or less, while higher loan amounts will be deposited in your business bank account within two to three business days. While this quick turnaround time may be appealing for business owners with urgent financing needs, it’s important to note that instant funding is not available the same day you sign your loan agreement.
Also, borrowers with lower credit scores may face higher interest rates. Those with strong credit and established business history may qualify for rates lower than the advertised starting annual percentage rate (APR).
→ Check out LendingTree’s full OnDeck business loans review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $100,000
Best for: Startup companies – Fundbox
- Starting rate
- 4.66%
12- to 52-week terms, or up to 104 weeks in certain limited situations
- Low annual revenue and time in business requirements
- Next-day funding available
- Flexible access to funds as needed
- Relatively short repayment terms
- May require a personal guarantee
Fundbox is our top pick for startup businesses because it has low time in business and annual revenue requirements compared to many competitors. Its line of credit offers access to up to $250,000, allowing businesses to draw funds as needed rather than borrowing a lump sum upfront.
Funds can be used for a variety of business expenses, including payroll, inventory and marketing costs. With funding available as soon as the next business day, Fundbox may also work well for businesses facing short-term cash flow gaps.
→ Check out LendingTree’s full Fundbox business loan review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
- Minimum credit score: 600
- Minimum time in business: 3 months
- Minimum annual revenue: $30,000
Best for: Large loan amounts – Fora Financial
- Starting rate
- 13.00%
Fora Financial’s minimum rate is a 1.13 factor rate. This means you’d repay 13.00% (plus any additional fees) on top of the amount borrowed.
- Higher maximum loan amounts than many competitors
- Low minimum credit score requirement
- High annual revenue requirement
- Uses factor rates, which can make borrowing costs harder to compare
Fora Financial’s impressively high borrowing limits make it our top choice for those who need to borrow large loan amounts. It offers up to $1,500,000 in funding. This may make it a good option for businesses with larger working capital needs or significant short-term expenses.
Fora Financial also has the second lowest credit score requirement on this list, which makes it a viable option for a broad range of borrowers. That said, you’ll need to generate quite a bit of revenue to qualify.
→ Check out LendingTree’s full Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
- Minimum credit score: 570
- Minimum time in business: 6 months
- Minimum annual revenue: $240,000
Best for: Borrowers with bad credit – Credibly
- Starting rate
- 11.00%
Credibly’s minimum rate is a 1.11 factor rate. This means you’d repay 11.00%, plus any additional fees, on top of the amount borrowed.
- Low minimum credit score requirement
- Short time in business requirement
- Same-day funding available
- High annual revenue requirement
- Charges an origination fee (2.50% of the loan amount)
Credibly is our top pick for borrowers with bad credit because it accepts credit scores as low as 500 and requires just 6 months in business to qualify. The lender offers up to $600,000 in working capital funding that can be used for a variety of short-term business expenses.
Like some of the other lenders on this list, Credibly offers relatively fast funding, with the ability to transfer the funds to your bank account as soon as the same day you apply. However, you’ll need an annual revenue of $180,000 or more to qualify.
→ Check out LendingTree’s full Credibly business loans review.
In order to qualify, you’ll need to meet Credibly’s criteria of:
- Minimum credit score: 500
- Minimum time in business: 6 months
- Minimum annual revenue: $180,000
Best for: Quick approvals – Bluevine
- Starting rate
- 7.80%
- Funding decisions available in as little as five minutes
- No maintenance fees
- Same-day funding could incur a fee
- Not available in Nevada, North Dakota or South Dakota
Bluevine is our top pick for quick approvals because it can provide funding decisions in as little as five minutes. Borrowers may also receive funds within one to three business days, with expedited same-day transfers requiring an additional fee.
Bluevine’s business line of credit offers access to up to $250,000, allowing businesses to draw funds as needed rather than borrowing a lump sum upfront.
→ Check out LendingTree’s full Bluevine business line of credit review.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $120,000
Best for: Seasonal businesses with fluctuating income – Reliant Funding
- Factor rate
- Starting at 1.20
- Revenue-based payments may be easier to manage during slower sales periods
- Fast approvals and same-day funding available
- Low qualification requirements for newer businesses
- Merchant cash advances can be more expensive than traditional business loans
- Daily or weekly remittances may strain cash flow
Reliant Funding is our top pick for seasonal businesses because it’s a merchant cash advance repaid through a percentage of future sales rather than fixed monthly payments. This flexible repayment structure may work well for businesses with fluctuating revenue throughout the year.
Reliant Funding also has relatively accessible qualification requirements, requiring just 6 months in business and no minimum credit score. Businesses may receive approvals quickly, with funding available as soon as the same day in some cases.
However, merchant cash advances can be significantly more expensive than traditional business loans, and repayment frequency may vary between daily and weekly remittances.
→ Check out LendingTree’s full Reliant Funding business financing review.
In order to qualify, you’ll need to meet Reliant Funding ’s criteria of:
- Minimum credit score: No minimum
- Minimum time in business: 6 months
- Minimum annual revenue: $1,000 minimum daily revenue balance in your dedicated business checking account
How to compare short-term business loans
To choose the best short-term business loan, take a close look at your loan agreement and compare these key factors:
-
Interest rate:
Look at the APR or factor rate to understand the total borrowing cost. Short-term loans often carry higher rates than traditional business loans. -
Repayment term:
Check whether payments are due daily, weekly or monthly. Frequent repayments can strain cash flow for some businesses. -
Time to fund:
Some online lenders can fund loans within days, while others may take longer. Faster funding often comes with higher costs. -
Loan amount:
Make sure the lender offers enough funding to cover your business needs without borrowing more than necessary. -
Eligibility requirements:
Compare minimum credit score, time in business and annual revenue requirements before applying. -
Additional fees:
Review origination fees, prepayment penalties and any maintenance or transfer fees that could increase costs.
Is a short-term business loan right for your business?
A short-term business loan is a type of financing designed to help businesses cover immediate expenses and is typically repaid within three to 24 months. Depending on the lender, repayment schedules may be daily, weekly or monthly. In contrast, long-term business loans are often repaid in monthly installments over several years.
A short-term business loan may make sense if:
- You need funding quickly.
- Your business expects incoming revenue soon.
- You can comfortably manage the repayment schedule.
- You don’t qualify for traditional financing.
Before borrowing, consider how much funding you need, what you plan to use it for and how quickly your business can realistically repay the debt.
While short-term financing may help businesses manage temporary cash flow gaps or unexpected expenses, repayment can become difficult if revenue slows unexpectedly.
Comparing multiple lenders can help you find the best rates, repayment terms and funding timelines for your business.
Types of short-term business loans
There are four distinct types of short-term business loans, including:
Business lines of credit
A business line of credit lets you borrow funds as needed rather than receiving a lump sum upfront. As you repay what you borrow, your available credit replenishes, similar to a credit card.
Best for: Recurring expenses and ongoing cash flow needs
Small business term loans
A small business term loan provides funding in one lump sum that is repaid through regular installments over a set repayment term.
Best for: One-time business expenses or planned purchases
Invoice factoring
Invoice factoring allows businesses to sell unpaid invoices to a factoring company in exchange for an upfront cash advance.
Best for: Businesses waiting on unpaid customer invoices
Merchant cash advance
A merchant cash advance provides funding upfront in exchange for a percentage of future debit or credit card sales.
Best for: Businesses with fluctuating sales needing fast funding
Keep in mind: Merchant cash advances can be more expensive than traditional business loans.
How to get a short-term business loan
-
Determine how much funding you need
Decide how you plan to use the funds and how much you need to borrow. Short-term business loans are typically best for day-to-day expenses or filling temporary cash flow gaps. -
Review your business finances
Determine whether you can afford to take on debt by doing a cash flow analysis. If you can’t afford to repay what you need to borrow, you’ll need to go back to step one and adjust your plans to work with a lower amount. -
Evaluate your qualifications
Once you decide what you can afford, you will also need to consider each lender’s business loan requirements to determine whether or not you qualify. Lenders typically consider your credit score, annual revenue and time in business when reviewing your application. Businesses with lower credit scores may still qualify but could face higher business loan interest rates. -
Compare lenders
It’s always a good idea to compare lenders to help find the best rate and the least amount of fees for your small business short-term loans. A marketplace like LendingTree can help you compare rates from multiple lenders. You can also check your local bank, especially if you already have a business relationship with them. -
Submit your application
Once you have found the lender you’d like to work with, you’ll need to apply for the business loan. Many lenders allow you to apply online. Be prepared to provide documents such as bank statements, tax returns or business financial information during the application process.
Pros and cons of short-term business loans
Pros
- Fast funding timelines, with some lenders offering same-day or next-day funding
- More flexible qualification requirements than traditional bank loans
- Streamlined online application processes
- Can help businesses manage temporary cash flow gaps or emergency expenses
Cons
- Higher interest rates and borrowing costs than some long-term financing options
- Repayment schedules may require daily or weekly payments
- Short repayment terms can strain cash flow if revenue slows unexpectedly
Short-term business loan interest rates
Short-term business loan rates generally range from around 3% to 50% or higher, depending on the lender and borrower qualifications. Because these loans are repaid over a shorter period of time, borrowing costs are often higher than those associated with long-term business loans.
Some lenders may charge a factor rate instead of a traditional interest rate. Unlike an APR, which is expressed as a percentage, a factor rate is shown as a decimal figure.
Example of a factor rate
- Loan amount: $50,000
- Factor rate: 1.20
- Total repayment amount: $60,000
To calculate the total repayment cost, multiply the loan amount by the factor rate.
If a short-term business loan isn’t the right fit, consider these alternatives:
0% APR business credit card
A business credit card with a 0% introductory APR can help cover short-term expenses without interest if the balance is repaid before the promotional period ends.
Personal loan
Another option is using a personal loan to finance your business, but keep in mind they may have higher interest rates and smaller loan amounts than traditional business loans.
Crowdfunding
Crowdfunding platforms like Kickstarter and Indiegogo allow businesses to raise funds without taking on debt.
401(k) loan
Some 401(k) plans allow borrowers to take loans against vested retirement savings. However, this option can put long-term retirement funds at risk.
According to IRS rules, you can borrow up to 50% of your vested account balance or $50,000, whichever is less.
Using a personal loan or credit card to fund your business puts your personal finances at risk. Exercise caution when deciding how much risk you’re willing to take on, and consider talking with a fiduciary advisor about how that risk can affect your future.
Get help finding the right business loan
For qualified users, LendingTree’s small business concierge service connects you with an expert who can help you compare loan options and choose the best fit for your business needs.
This individualized approach helped LendingTree’s small business concierge service connect more than 5,000 borrowers with over $300 million of loans in the past year.
What is the major benefit of using LendingTree’s SMB concierge service?
“Our consultative approach helps business owners compare options and make informed decisions.”
— Ben Whitman, business loan sales director at LendingTree
Frequently asked questions
Small businesses might consider a short-term loan if you are looking for an emergency business loan or short-term funding to cover an unexpected expense. Lenders of short-term business loans may also be more lenient in qualification requirements, which could be good if you have poor or limited credit.
Short-term business loans usually provide funding fast. The exact time frame to receive your funds will depend on the lender. Some will provide funding the same day you’re approved, while others take several days or more.
You might be able to get a bad credit business loan. Some lenders don’t weigh credit scores that heavily and instead prefer to see strong cash flow. However, those with low credit scores are likely to receive higher interest rates than those with excellent credit. In addition, keep in mind that taking on more debt you can’t afford can negatively impact your credit score further.
Short-term business loans typically have repayment terms ranging from three to 24 months, though some lenders may offer repayment schedules as short as a few weeks. Exact loan terms vary by lender, loan type and borrower qualifications.
Yes, some lenders offer short-term financing for newer businesses and startups. Requirements vary by lender, but some may accept businesses with as little as three to six months in operation.
Startup businesses may still face higher borrowing costs or shorter repayment terms, especially if they have limited revenue or lower credit scores.
Our methodology: How we chose the best short-term business loans
To make our list of the best short-term business loans, we considered the following criteria:
- Term length: We included loans with terms up to 24 months, including many with significantly shorter terms for seasonal businesses and temporary needs.
- Requirements: We included options for a variety of businesses based on credit scores, time in business requirements, revenue requirements and loan amounts.
- Interest rates and fees: We prioritize lenders that offer competitive interest rates and lower fees, including minimal origination fees and prepayment penalties.
- Repayment terms: Flexible payment options, with most lenders offering repayment terms of at least three months.