$2,000 to $250,000
3.00%
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.
6 to 24 months
Unlike a term loan, where you receive a one-time, lump sum of funds, a business line of credit allows you to borrow money as you need it. American Express gets the nod for best short-term business line of credit due to its low monthly revenue requirements, flexible loan terms and the fact that unlike many of the other options on this list, daily or weekly payments are not required.
However, only select customers will qualify for loans over $150,000, and while American Express stands out for its low starting rates, you’ll need a strong credit score to take advantage of them.
In order to qualify, you’ll need to meet American Express’s criteria of:
$5,000 to $250,000
31.30% APR Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Up to 24 months
OnDeck is our top pick for fast funding because it offers same-day funding on loans of $100,000 or less, while higher loan amounts will be deposited in your business bank account within two to three business days. This is a quick turnaround time, which may be appealing for business owners with urgent financing needs.
While low credit borrowers could end up paying steep interest rates with OnDeck, some borrowers with excellent credit and business history may be able to qualify for a lower rate than the one that’s advertised.
Read our OnDeck review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
Up to $150,000
4.66% for 12 weeks
8.99% for 24 weeks
12 or 24 weeks
With low time in business and annual revenue requirements, Fundbox wins the race for the best short-term business loan for startups. This flexible line of credit allows you to borrow up to $150,000 as needed for your business.
The borrowed funds can be used to cover a wide range of costs, including payroll, supplies and marketing expenses. Because Fundbox can provide these funds as soon as the next business day, this is also a good option for borrowers seeking flexible funding to cover potential cash flow gaps.
Read our Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
$5,000 to $1,500,000
1.13 factor rate
4 to 18 months
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, which should be more than enough to cover your immediate business expenses.
In addition, Fora Financial has the second lowest credit score requirement on this list, which might make it a viable option for borrowers with less than perfect credit. That said, you’ll need to generate quite a bit of revenue to qualify — at least $20,000 per month.
Read our Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
$25,000 to $600,000
1.11 factor rate
6 to 24 months
If you’re looking for a bad credit business loan, Credibly may be a good option. All you need is a credit score of 500 and at least six months in business to apply. Offering up to $600,000, this working capital loan can be put toward a wide range 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.
Read our Credibly review.
In order to qualify, you’ll need to meet Credibly’s criteria of:
$5,000 to $250,000
7.80%
Up to 12 months
Bluevine can make a funding decision in as little as five minutes, so you won’t have to wait long to find out if you’re approved. With reasonable interest rates, Bluevine’s business line of credit offers flexible access to up to $250,000 at an affordable price.
Though your exact rate will depend on several factors, Bluevine’s starting rates are lower than the average for this type of financing, making this a relatively affordable option, especially if you have a good credit score. However, if you don’t want to wait two to three days to receive your funds, you may have to pay a fee to initiate a same-day transfer.
Read our Bluevine review.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
$2,000 to $2,000,000
1.20 factor rate
2 to 24 months
If you run a seasonal business with income that fluctuates throughout the year, you may want to consider a merchant cash advance (MCA), which unlike a small business loan, is repaid through a percentage of your future debit and credit card sales.
Reliant Funding’s MCAs stand out due to the lender’s low credit score, time in business and annual revenue requirements, which may make it possible for startups and low credit borrowers to qualify. Plus, while other merchant cash advances rarely come with the opportunity to make extra payments, Reliant Funding offers a 10% prepayment discount for borrowers who pay off their loan early.
Read our Reliant Funding review.
In order to qualify, you’ll need to meet Reliant Funding’s criteria of:
There are four distinct types of short-term business loans, including:
A business line of credit is typically a revolving, flexible form of business funding that only charges interest on the amount that you borrow. As the name suggests, a line of credit works similarly to a credit card, allowing you to borrow funds as you need them. Then, once you make a payment toward your balance, the line of credit is replenished and you can borrow from it again.
Business lines of credit can be secured with collateral or unsecured.
Unlike a business line of credit, which lets you access funds as they’re needed, small business term loans work more like a traditional installment loan. With this type of financing scenario, you’ll receive the full loan amount in one lump sum and be responsible for making regular repayments on that amount until it’s paid back in full.
At its core, invoice factoring is the process of selling your unpaid invoices to a factoring company in exchange for an advance payment. Traditionally, you submit an approved invoice to the factoring company and receive an advance of 70% to 90% of the amount due. Then, once the invoice is paid in full, the factoring company sends you the remaining percentage, minus any agreed-upon transaction fees.
A merchant cash advance gives you a lump-sum payment as an advance against your future sales. Typically, this type of funding is repaid by giving the lender a pre-set percentage of your daily or weekly credit card sales. It can be a good way to access fast funding, but it is also considered to be an expensive form of borrowing.
| Pros | Cons |
|---|---|
| Funding for short-term business loans is typically quick, meaning you could have the cash within a few business days after applying. Online lenders offering short-term loans tend to have an easy application process. Repaying your loan on time or ahead of schedule could help boost your credit, but be sure to check that there are no prepayment penalty fees. | Online lenders offering short-term business loans tend to have higher interest rates and fees. Short-term loans require quick repayment timelines with either daily or weekly payments. You’ll likely have to start making payments within the following day or week after taking on the loan. |
Small businesses might consider a short-term loan if you are looking for an emergency business loan, short-term funding to cover an unexpected expense or to help expand your business. Short-term business loans can also be more lenient in qualification requirements, which could be good if you have poor or limited credit.
Short-term business loans usually provide fast funding. 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 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 do indeed come with short repayment terms. The exact repayment term will ultimately depend on the lender, with Fundbox offering terms for as short as 12 to 24 weeks.
Generally, short-term lenders consider time in business, but that doesn’t mean new businesses won’t qualify for short-term loans. Some lenders offer short-term loans to startup businesses that have been operating for only a year or less. However, higher interest rates are likely to come with these loans, and the repayment terms aren’t always flexible.
