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Online Business Loans: Compare Fast Funding Options

Last updated on August 23, 2023
Edited bySally Lauckner
✅Fact checked and reviewed

⏰ Estimated read time: 8 minutes

Online business lenders often provide faster and easier access to capital than traditional lenders, though at higher 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 Rating▼Max loan amount▼Min. credit score▼Next 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

Read Review
4.5/5

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

$1,500,000500

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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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5.0/5

Best for Long-term online business loans

$500,000660

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Fundbox - Line of credit

Read Review
5.0/5

Best for Online business loans for startups

$150,000600
Read Review

Headway Capital - Line of credit

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5.0/5

Best for Quick online business loans

$100,000600

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National Funding - Online Term Loan

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4.5/5

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

$250,000600

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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

Read Review

Best for Online business loans for bad credit

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

500

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

Read Review

Best for Quick online business loans

Headway Capital

Max Amount

$100,000

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

600

Curious if you qualify?

Input your small-business information* and compare your qualifications with our available partners below.

* We value your privacy and are committed to ensuring the security of your personal information. We would like to assure you that any information you share with us will not be stored, processed, or retained beyond the scope of our current interaction. We do not engage in any practices that compromise your data or compromise your confidentiality.

Little shop

Time in business (months)

12-23 months

Credit score

580-619

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

5.0
NerdWallet rating 
Read Review

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Max Loan Amount
$100,000
Min. credit score
625
Est. APR
39.90-77.90%

Here is what you will need to qualify:

Minimum annual revenue

$ 100,000

Click to see if you qualify

Time in business

12 months

Click to see if you qualify

Minimum credit score

625

Click to see if you qualify

May fund quickly

OnDeck - Line of credit

5.0
NerdWallet rating 
Read Review

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Max Loan Amount
$100,000
Min. credit score
625
Est. APR
39.90-77.90%
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

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

4.5
NerdWallet rating 
Read Review
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.

American Express® Business Line of Credit

4.5
NerdWallet rating 
Read Review
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.

Our pick for

Online business loans for bad credit

Fora Financial’s minimum credit score requirement is 500, lower than any other lender on our list.

Fora Financial - Online term loan

4.5
NerdWallet rating 
Read Review

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Max Loan Amount
$1,500,000
Min. credit score
500

Here is what you will need to qualify:

Minimum annual revenue

$ 180,000

Click to see if you qualify

Time in business

6 months

Click to see if you qualify

Minimum credit score

500

Click to see if you qualify

Fora Financial - Online term loan

4.5
NerdWallet rating 
Read Review

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Max Loan Amount
$1,500,000
Min. credit score
500
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.

Our pick for

Short-term online business loans

Bluevine offers up to $250,000 with repayment terms of six or 12 months.

Bluevine - Line of credit

5.0
NerdWallet rating 
Read Review

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Max Loan Amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%

Here is what you will need to qualify:

Minimum annual revenue

$ 480,000

Click to see if you qualify

Time in business

24 months

Click to see if you qualify

Minimum credit score

625

Click to see if you qualify

May fund quickly

Bluevine - Line of credit

5.0
NerdWallet rating 
Read Review

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

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

5.0
NerdWallet rating 
Read Review

with Fundera by NerdWallet

Max Loan Amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%

Here is what you will need to qualify:

Minimum annual revenue

$ 0

Click to see if you qualify

Time in business

24 months

Click to see if you qualify

Minimum credit score

660

Click to see if you qualify

May fund quickly

Funding Circle - Online term loan

5.0
NerdWallet rating 
Read Review

with Fundera by NerdWallet

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

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

5.0
NerdWallet rating 
Read Review
Max Loan Amount
$150,000
Min. credit score
600
Est. APR
10.10-79.80%

Here is what you will need to qualify:

Minimum annual revenue

$ 100,000

Click to see if you qualify

Time in business

6 months

Click to see if you qualify

Minimum credit score

600

Click to see if you qualify

May fund quickly

Fundbox - Line of credit

5.0
NerdWallet rating 
Read Review
Max Loan Amount
$150,000
Min. credit score
600
Est. APR
10.10-79.80%
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
May fund quickly

Our pick for

Quick online business loans

Headway Capital allows you to apply for its line of credit in just minutes and receive funds within one business day of when you’re approved.

Headway Capital - Line of credit

5.0
NerdWallet rating 

with Fundera by NerdWallet

Max Loan Amount
$100,000
Min. credit score
600
Est. APR
40.00-80.00%

Here is what you will need to qualify:

Minimum annual revenue

$ 50,000

Click to see if you qualify

Time in business

12 months

Click to see if you qualify

Minimum credit score

600

Click to see if you qualify

Headway Capital - Line of credit

5.0
NerdWallet rating 

with Fundera by NerdWallet

Max Loan Amount
$100,000
Min. credit score
600
Est. APR
40.00-80.00%
Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.

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

4.5
NerdWallet rating 
Read Review

with Fundera by NerdWallet

Max Loan Amount
$500,000
Min. credit score
600

Here is what you will need to qualify:

Minimum annual revenue

$ 250,000

Click to see if you qualify

Time in business

6 months

Click to see if you qualify

Minimum credit score

600

Click to see if you qualify

National Funding - Online Term Loan

4.5
NerdWallet rating 
Read Review

with Fundera by NerdWallet

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.

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 

with Fundera by NerdWallet

Max Loan Amount
$250,000
Min. credit score
600
Est. APR
5.99-35.00%

Here is what you will need to qualify:

Minimum annual revenue

$ 250,000

Click to see if you qualify

Time in business

24 months

Click to see if you qualify

Minimum credit score

600

Click to see if you qualify

Triton Capital - Equipment financing

4.0
NerdWallet rating 

with Fundera by NerdWallet

Max Loan Amount
$250,000
Min. credit score
600
Est. APR
5.99-35.00%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.

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 can start as low as 6%, but reach as high as 99%.
Online loans can also have lower maximum funding amounts and shorter repayment periods than bank loans — although terms ultimately vary by lender.
» MORE: Business loan calculator: Estimate interest rates and loan payments

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.
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 from a set limit of funds, as needed, 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.
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 capital 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. 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

  • Fast to fund. While bank and SBA loans can take weeks to fund, some online business loans can provide capital in as little as 24 hours. And even if you don’t receive a loan that quickly, many online lenders offer funding within days.
  • Streamlined applications. Online business loans often offer streamlined application processes with minimal documentation. While traditional lenders tend to rely on a manual review system to evaluate loan applications, many online lenders leverage technology so that they can underwrite your business more quickly and provide a faster application decision.
  • Variety of loan options. There are many different types of online business loans available — depending on your business size, funding needs, qualifications and more. Among these choices, small-business lenders offer a range of interest rates, repayment terms and loan amounts, so you can compare your options to find the right loan for your business.
  • Flexible qualification requirements. To qualify for a business bank loan, you’ll generally need strong credit and several years in business. With online business loans, on the other hand, qualification requirements are typically more flexible. Lenders may consider factors other than your personal credit score, time in business and annual revenue when evaluating your application. Some lenders will also work with new businesses or those with bad credit.
» MORE: Best startup business loan options for entrepreneurs

Cons

  • Can be expensive. Because online business loans are faster to fund and easier to qualify for — and therefore pose greater risk for lenders — they will generally be more expensive than bank and SBA loans. While the average business loan rate for banks ranges from about 5.26% to 11.32%, APRs for online loans can vary anywhere from 6% to 99%. And APRs for merchant cash advances can reach even higher — up to 350%.
  • Limited person-to-person interaction. Although some online lenders offer phone-based customer support, you’ll typically complete the entire loan process online — meaning you may not interact with anyone from the lending company. If you’re looking to build a relationship with a lender or have someone address your questions one-on-one, an online business loan might not be the best option for you.
  • Security risks. There are a multitude of reliable online lenders on the market, but there are also bad actors that are looking to take advantage of small-business owners. These predatory lenders are often trying to trap businesses with offers that seem too good to be true, especially if those businesses are having trouble finding financing elsewhere. You can avoid these business loan scams by thoroughly researching and vetting an online lender to make sure they are reliable and trustworthy.

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.

3. Compare lenders

You should explore and compare multiple lenders to find the best fit for your needs. 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.

Find the right business loan

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on August 23, 2023

Methodology

NerdWallet reviewed both traditional and online institutions in order to create our list of the best online business loans.
Our list includes a variety of loan options to meet the diverse funding needs of small-business owners, with an emphasis on lenders that offer a streamlined underwriting and approval process.
Each small-business loan option on our list meets the following criteria:
- Maximum loan amount of at least $100,000.
- Transparent rates and repayment terms.
- Funding available within four days of applying.
- Personal credit score requirements of 660 or below.
- No more than two years in business required.

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