$5,000 to $250,000
27.30% APR 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
OnDeck is our best pick for fast funding because it offers same-day funding and provides prequalification. That said, its minimum credit score requirement is a bit steep compared to its competitors. Still, OnDeck has a lot to offer business owners. As long as you have a good credit score, you may be able to qualify for a better rate than the one that’s advertised.
Read our OnDeck review.
In order to qualify, you’ll need to meet the Ondeck’s criteria of:
$2,000 to $250,000
3.00% to 27.00%
3% to 9% for 6-month loans
6% to 18% for 12-month loans
9% to 27% for 18-month loans
6, 12, 18 or 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 wins our pick for best short-term business line of credit because of its low monthly revenue requirements, flexible loan terms and amounts and quick application process.
Read our American Express Business Line of Credit review.
In order to qualify, you’ll need to meet the American Express’s criteria of:
Up to $150,000
4.66% for 12 weeks
8.99% for 24 weeks
12 or 24 weeks
Fundbox can approve you for up to $150,000 as soon as the next business day, which makes it one of our top choices for short-term business loans. Fundbox has many added benefits, including access to FlexPay, an option that gives you an extra three days to pay vendors, which makes it the best choice for those who need flexible repayment options.
Read our Fundbox review.
In order to qualify, you’ll need to meet the Fundbox’s criteria of:
$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
Fora Financial’s high borrowing limits make it our best pick for those who need large loans. It offers up to $1,500,000 in funding, which should be more than enough to cover your immediate expenses. In addition, its low minimum credit score and short time in business requirements help ensure that eligibility is feasible for newer businesses, like startups. That said, you’ll have to show 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 the Fora Financial’s criteria of:
Up to $600,000
11.00% 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.
6 to 24 months
If you’re looking for a business loan for bad credit, Credibly may be a decent option. It has a minimum credit score requirement of only 500 and requires just three months in business to apply. However, you’ll have to show that your business is generating a lot of income to be approved, at least $180,000 per year in deposits. You’ll also pay for the privilege of borrowing. Credibly charges a 2.50% origination fee, regardless of the loan amount.
Read our Credibly review.
In order to qualify, you’ll need to meet the Credibly’s criteria of:
$250,000
7.80%
6 or 12 months
With a monthly revenue requirement of at least $10,000 and a 12-month time in business requirement, Bluevine’s short-term business loans are best suited for established businesses with plenty of revenue. Still, if you qualify you may receive a competitive interest rate and a funding decision in as little as five minutes after filling out the company’s easy, online application.
Read our Bluevine review.
In order to qualify, you’ll need to meet the Bluevine’s criteria of:
$5,000 to $100,000
Not disclosed
Up to 24 months
Headway Capital is our top choice for startups because it looks beyond credit scores when evaluating your eligibility for a loan. According to its website, the company takes a holistic view of your business, understanding that a credit score isn’t necessarily representative of its overall health. However, its $50,000 annual revenue requirement might be challenging for many new businesses to meet.
Read our Headway Capital review.
In order to qualify, you’ll need to meet the Headway Capital’s criteria of:
A short-term business loan is a type of funding used to cover immediate business needs, like working capital expenses or other emergency costs.
Regardless of how they are used, short-term business loans are meant to be paid back over a short period of time. Short-term business loans typically have loan terms ranging from three to 24 months with daily or weekly payments.
This is unlike long-term business loans, which can usually be repaid in monthly installments over a period of up to ten years.
On this page
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 will be responsible for making regular repayments on that amount until it’s paid off 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 with 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 send the funds within 72 hours upon approval.
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 loans. 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 brand new businesses won’t qualify for short-term loans. There are some lenders that offer short-term loans to startup businesses that have been operating for only a year or less. However, high-interest rates are likely to come with these loans, and the repayment terms aren’t always flexible.
