If you need an influx of cash to help you manage a disruption such as bumpy seasonal sales or if you want to take advantage of an inventory discount, you might need a short-term funding fix to get you through.
On the flip side, if you have a strong, steady flow of revenue and want to borrow money to go after a business opportunity or open a second location, you may qualify for a business loan with a cheaper interest rate and longer term than short-term financing.
We’ve outlined some online small-business loan options for filling a cash flow gap or finding financing based on your cash flow — and ways to figure out which type of cash flow loan is best for you and your business.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 4 options for you
Lender | Best for | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|
Kabbage - Line of credit on Kabbage's website | Best for Short-term loans for cash flow gaps | $250,000 | 640 | on Kabbage's website |
OnDeck - Online term loan with Fundera by NerdWallet | Best for Short-term loans for cash flow gaps | $250,000 | 600 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | Best for Short-term loans for cash flow gaps | $250,000 | 600 | with Fundera by NerdWallet |
Credibility Capital - Online term loan with Fundera by NerdWallet | Best for Loans for businesses with strong cash flow | $500,000 | 650 | with Fundera by NerdWallet |
Our picks for
Short-term loans for cash flow gaps
Kabbage - Line of credit
Max Loan Amount
$250,000
Min. Credit Score
640
Est. APR
9.00-36.00%
Kabbage loans are a good option for business owners with fair credit who want quick access to working capital.
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. Credit Score
600
Est. APR
9.00-99.00%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. Credit Score
600
Est. APR
15.00-78.00%
Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
Our pick for
Loans for businesses with strong cash flow
Credibility Capital - Online term loan
Max Loan Amount
$500,000
Min. Credit Score
650
Est. APR
6.99-24.99%
Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.
How Much Do You Need?
Would a cash flow loan help you take advantage of inventory discounts? Imagine you have an opportunity to buy bulk inventory at a discount. A cash flow loan could help if you don’t have the money right now to make the purchase.
Would financing help you say yes to a job? Say you own a restaurant and are asked to cater a big event. To jump on the opportunity, you need to hire a few more servers, but you don’t have the cash. A line of credit or short-term loan could let you say yes.
Are you entering a slow period? Another example: You own an ice cream shop and winters are slow. Ideally, you’d budget for this by saving more in the summer, but a cash flow loan could get you through in a pinch.
Do you have a lot of outstanding invoices? Many small businesses experience uneven cash flow because their customers pay invoices weeks or months after receiving their product or service. If you’re in this situation, a short-term small-business loan could bridge the gap, but consider invoice financing instead.
Are you struggling to stay afloat? Using a small-business loan to keep the lights on or finance other basic business needs could cause you to spiral into debt. Instead, talk with a business consultant, like those available at your local Small Business Development Center, and get to the root of your business’s financial problems.
Even if your company is flourishing, a cash flow hiccup can have a big impact on your ability to run it effectively.
Online lenders offer an alternative to traditional bank loans, which are hard to qualify for if your business is fairly new or you have poor credit. But online lenders’ short-term cash flow loans — which typically have repayment terms between three and 36 months — have higher borrowing costs, so they’re best used to finance projects that help your business grow.
Another option is a business credit card, which can help you manage cash flow gaps while also gaining access to rewards, like cash back. Unlike qualifying for a business loan, you typically can qualify for a business credit card with strong personal credit and get competitive interest rates. However, you may need to sign a personal guarantee, which means you’ll be liable for the business’ debt if you miss payments.
So you have strong cash flow, but you’re still looking for a loan? Because many lenders view strong cash flow as an indicator of a strong business, you may qualify for loans with low rates.
SBA loans, which are business loans backed by the U.S. Small Business Administration, offer low rates and competitive terms for businesses with solid credit and strong cash flow.
If you need funding quickly, you can turn to online lenders that offer business loans at competitive rates and a streamlined application process.
NerdWallet has come up with a comparison tool for the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and filtered them by categories that include your revenue and how long you’ve been in business.
Last updated on December 15, 2021
To recap our selections...
Where to Find Cash Flow Loans in 2022
- Kabbage - Line of credit: Best for Short-term loans for cash flow gaps
- OnDeck - Online term loan: Best for Short-term loans for cash flow gaps
- Bluevine - Line of credit: Best for Short-term loans for cash flow gaps
- Credibility Capital - Online term loan: Best for Loans for businesses with strong cash flow