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Best Online Business Loans of 2024

By Randa Kriss
Last updated on May 3, 2024
Edited bySally Lauckner
Fact checked and reviewed
Online business lenders often provide faster and easier access to capital than traditional lenders, though at higher interest rates.

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Online business loans are a type of business financing that you can apply for completely online. Although any lender can use an online application, online business loans are usually offered by financial technology companies, not banks.
Compared with traditional lenders, online business lenders typically have more flexible qualifications and streamlined underwriting processes — but charge higher rates for these conveniences. As a result, these small-business loans are a good fit if you can’t qualify with a bank or are willing to pay extra for faster funding.

How much do you need?

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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 9 online business loans

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

OnDeck - Line of credit

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5.0/5

Best for Same-day online business loans

$100,000625

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American Express® Business Line of Credit

5.0/5

Best for Online business loans for low-revenue businesses

$250,000660
Read Review

Fora Financial - Online term loan

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4.5/5

Best for Online business loans for bad credit

$1,500,000570

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Bluevine - Line of credit

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5.0/5

Best for Short-term online business loans

$250,000625

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Funding Circle - Online term loan

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4.5/5

Best for Long-term online business loans

$500,000660

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Fundbox - Line of credit

5.0/5

Best for Online business loans for startups

$150,000600
Read Review

National Funding - Online Term Loan

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4.0/5

Best for Unsecured online business loans

$500,000600

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Triton Capital - Equipment financing

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4.0/5

Best for Online equipment loans

$250,000575

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AltLINE - Invoice Factoring

4.5/5

Best for Online invoice factoring

$10,000,000300
Read Review

Here are 9 online business loans

Best for Same-day online business loans

OnDeck

Max Amount

$100,000

Min. Credit Score

625

Best for Online business loans for low-revenue businesses

American Express Business Blueprint™

Max Amount

$250,000

Min. Credit Score

660

Best for Online business loans for bad credit

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

570

Best for Short-term online business loans

Bluevine

Max Amount

$250,000

Min. Credit Score

625

Best for Long-term online business loans

Funding Circle

Max Amount

$500,000

Min. Credit Score

660

Best for Online business loans for startups

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Best for Unsecured online business loans

National Funding

Max Amount

$500,000

Min. Credit Score

600

Best for Online equipment loans

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

Best for Online invoice factoring

AltLINE

Max Amount

$10,000,000

Min. Credit Score

300

I'M INTERESTED IN:

Our pick for

Same-day online business loans

OnDeck offers a short-term line of credit of up to $100,000. The lender can fund applications as soon as the same day.

OnDeck - Line of credit

Read Review

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Max Loan Amount
$100,000
Min. credit score
625
Est. APR
35.90-84.90%
OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.
May fund quickly

Max loan

$100,000

Min. Credit score

625

Apr range

35.90-84.90%

OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.
Read Review

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Our pick for

Online business loans for low-revenue businesses

Businesses with an average monthly revenue of at least $3,000 may be able to qualify for the American Express® Business Line of Credit.

American Express® Business Line of Credit

Max Loan Amount
$250,000
Min. credit score
660
The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

Max loan

$250,000

Min. Credit score

660

The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

Our pick for

Online business loans for bad credit

Fora Financial’s minimum credit score requirement is 570, lower than any other lender on our list.

Fora Financial - Online term loan

Read Review

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Max Loan Amount
$1,500,000
Min. credit score
570
Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.

Max loan

$1,500,000

Min. Credit score

570

Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
Read Review

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Our pick for

Short-term online business loans

Bluevine offers up to $250,000 with repayment terms of 26 weeks.

Bluevine - Line of credit

Read Review

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Max Loan Amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
Bluevine's 26-week line of credit provides fast working capital for short-term borrowing needs.
May fund quickly

Max loan

$250,000

Min. Credit score

625

Apr range

20.00-50.00%

Bluevine's 26-week line of credit provides fast working capital for short-term borrowing needs.
Read Review

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Our pick for

Long-term online business loans

Funding Circle’s online business loans can have terms as long as seven years.

Funding Circle - Online term loan

Read Review

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Max Loan Amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly

Max loan

$500,000

Min. Credit score

660

Apr range

15.22-45.00%

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
Read Review

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Our pick for

Online business loans for startups

Fundbox accepts applications from businesses with as little as six months in business.

Fundbox - Line of credit

Max Loan Amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
May fund quickly

Max loan

$150,000

Min. Credit score

600

Apr range

36.00-99.00%

Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.

Our pick for

Unsecured online business loans

National Funding doesn’t require physical collateral or a down payment for its online term loans.

National Funding - Online Term Loan

Read Review

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Max Loan Amount
$500,000
Min. credit score
600
Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.

Max loan

$500,000

Min. Credit score

600

Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.
Read Review

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Our pick for

Online equipment loans

Triton Capital provides equipment loans to businesses in a variety of industries. The lender can fund applications in a matter of days.

Triton Capital - Equipment financing

4.0
NerdWallet rating 

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Max Loan Amount
$250,000
Min. credit score
575
Est. APR
5.99-34.99%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

575

Apr range

5.99-34.99%

Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.

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Our pick for

Online invoice factoring

AltLINE’s online invoice factoring can offer business-to-business companies cash for their unpaid invoices.

AltLINE - Invoice Factoring

Max Loan Amount
$10,000,000
Min. credit score
300
AltLINE offers fast invoice factoring with competitive factoring rates.

Max loan

$10,000,000

Min. Credit score

300

AltLINE offers fast invoice factoring with competitive factoring rates.

How Much Do You Need?

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What is an online business loan?

An online business loan is generally offered by nonbank lenders, also called alternative lenders. Unlike banks or credit unions, which may require you to visit a branch to complete the financing process, alternative lenders typically process and fund small-business loans entirely online.
Online business loans are usually fast to fund, with more flexible qualification requirements than other types of business financing. Some online business lenders work with startups or businesses with bad credit.
Speed and flexibility come with a cost, however. Online business loans tend to have higher interest rates than bank or U.S. Small Business Administration loans. Annual percentage rates for online loans range from 6% to 99%.
Many online lenders don’t require collateral — pledged assets such as real estate, equipment and unpaid invoices that can be seized by the lender if you don’t repay the loan. However, offering collateral may help you access lower rates and better terms.
Online loans can require weekly payments and also have lower maximum funding amounts and shorter repayment periods than bank loans — although terms ultimately vary by lender.

Types of online business loans

There are several types of online loans that you can use to finance your small business. Here are some of the most common options.

Business term loans

Small-business term loans provide a lump sum of cash that you repay, with interest, over a fixed period of time. Some online lenders offer short-term loans, with terms of 12 months or less — while others offer longer repayment terms of seven years, for example.
Because you can repay business term loans over an extended period, these online loans are usually a good choice for larger investments and long-term growth.

Business lines of credit

A business line of credit allows you to draw funds as needed up to a set limit and only pay interest on the money you’ve borrowed. You repay the funds over a specific period of time, typically on a monthly or weekly schedule.
Compared with term loans, business lines of credit are a more flexible form of financing — making them well-suited for managing cash flow, covering payroll and other short-term needs.

Equipment financing

Equipment financing is a type of small-business loan designed specifically for the purchase of machinery or equipment. Equipment loans are often structured as term loans — with repayment periods based on the anticipated life of the equipment you’re looking to buy. Depending on the equipment, that could mean loan terms of a year to up to 10 years, potentially.
With equipment financing, the equipment you purchase serves as collateral on the loan, which means you may not have to rely as heavily on your credit or financial history to qualify.

Invoice financing and invoice factoring

Invoice financing allows you to borrow money against your outstanding invoices. A lender gives you a percentage of your unpaid invoices upfront in the form of a loan or line of credit with the invoices serving as collateral. Once your customer pays the invoice, you pay the lender back the amount borrowed, plus fees and interest.
With invoice factoring, on the other hand, you sell your outstanding invoices to a factoring company at a discount. The factoring company then collects payments from your customers directly.
Both of these types of financing are good options for business-to-business companies that need to cover cash flow gaps. Invoice factoring and financing can also be easier to qualify for than other types of business loans — but may have higher interest rates.

Merchant cash advances

A merchant cash advance, or MCA, provides you with a lump sum of capital that you repay using a percentage of your future credit and debit card sales, plus a fee. A merchant cash advance isn't technically a loan — instead, an MCA company is buying your future sales at a discount.
Although merchant cash advances are fast to fund and easy to qualify for, they’re one of the most expensive forms of online business financing. You'll want to consider all other options before turning to an MCA.

Pros and cons of online business loans

Pros

Cons

How to apply for an online business loan

Although loan applications vary from lender to lender, you’ll typically be able to apply for an online business loan within minutes. Here are the steps you can follow:

1. Understand your financing needs

You’ll want to determine how much capital you need, how much debt you can afford and what type of loan is right for your business.

2. Evaluate your qualifications

Most lenders will look at your personal credit score, time in business and annual revenue when underwriting your loan application. Online lenders may also look at your cash flow, financial accounts or outstanding invoices. You’ll want to review your business qualifications ahead of time so you know where your company stands. Also, you may want to estimate the value of any assets you plan to offer as collateral for your loan.

3. Compare lenders

You should explore and compare multiple lenders to find the best fit for your needs. This includes reviewing factors such as:
  • Loan amounts.
  • Interest rates.
  • Additional loan fees.
  • Repayment terms.
  • Prepayment penalties.
  • Customer support options.
A business loan calculator can help you understand the total cost of a loan when comparing lenders. You’ll also want to research the lender and read reviews to make sure they’re reputable.

4. Submit your application

With most online lenders, you should be able to complete and submit your business loan application in minutes. Some lenders have you fill out a simple form and connect your financial data to their system so that they can evaluate your business information more quickly and provide a faster application decision.
You may also, however, need to provide financial documentation, such as:
  • Business and personal tax returns.
  • Business and personal bank statements.
  • Business financial statements (e.g., profit and loss statement, balance sheet).
Additionally, your lender may secure the loan by taking out a blanket lien on your business assets — and you’ll likely be required to sign a personal guarantee.

5. Review your loan agreement and receive funds

Online lenders typically fund business loan applications within a matter of days. Some lenders offer funding in as little as 24 hours. Before signing a business loan agreement, make sure you review the terms and conditions and talk to your lender if you have any questions.

Alternatives to online business loans

If an online loan is not the right fit for your business, you may want to consider these other types of funding.
Last updated on May 3, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: - Transparency of rates and terms. - Flexible payment options. - Fast funding times. - Accessible customer service. - Reporting of payments to business credit bureaus. - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

Learn more

Frequently Asked Questions