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Best Short-Term Business Loans 2021

Online lenders provide short-term business loans starting at three months. Compare options for good- and bad-credit borrowers.

Steve NicastroFebruary 17, 2021

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Short-term business loans can give your business the fast cash it needs to bridge cash-flow gaps, handle emergencies and other immediate financing needs, or take advantage of a business opportunity.

Think of them as quick-turnaround loans: Borrow what you can pay back relatively quickly so you can focus on running your business rather than managing debt.

Here are short-term financing options from online business lenders. We always recommend comparing small-business loans from multiple loan providers.

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Est. APR
Min. Credit Score

Lender	Best For	Est. APR	Min. Credit Score	Next Steps
BlueVine - Line of credit See Your Options with Fundera by Nerdwallet	Best for Short-term lines of credit	15.00-78.00%	600	See Your Options with Fundera by Nerdwallet
Fundbox - Line of credit See Your Options with Fundera by Nerdwallet	Best for Short-term lines of credit	10.10-79.80%	600	See Your Options with Fundera by Nerdwallet
OnDeck - Online term loan See Your Options with Fundera by Nerdwallet	Best for Short-term business loans for fast cash	9.00-99.00%	600	See Your Options with Fundera by Nerdwallet
Credibility Capital - Online term loan See Your Options with Fundera by Nerdwallet	Best for Short-term business loans for low rates	6.99-24.99%	650	See Your Options with Fundera by Nerdwallet

Summary of Best Short-Term Business Loans 2021

Our picks for

Short-term lines of credit

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BlueVine - Line of credit

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with Fundera by Nerdwallet

Est. APR

15.00-78.00%

Min. Credit Score

600

BlueVine's line of credit provides fast working capital for short-term borrowing needs.

Pros

Cash can be available within 12 to 24 hours.
Multiple term lengths for different financing needs.

Cons

Short repayment term results in higher payment amounts.
Requires personal guarantee.
Not available in North Dakota, South Dakota or Vermont.

Read full review

Qualifications:

6-month line of credit:
Minimum credit score: 600.
Minimum time in business: 6 months.
Minimum annual revenue: $120,000.
12-month line of credit:
Minimum credit score: 600.
Minimum time in business: 6 months.
Minimum annual revenue: $120,000.

May fund quickly

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Fundbox - Line of credit

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Est. APR

10.10-79.80%

Min. Credit Score

600

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

Pros

Cash can be available by the next day.
Low minimum credit score requirement.

Cons

Rates are high compared to traditional banks.

Read full review

Qualifications:

Minimum credit score: 600.
Minimum time in business: 6 months.
Minimum annual revenue: $100,000.

May fund quickly

Our pick for

Short-term business loans for fast cash

Business loans are term loans that provide a lump of cash upfront, repaid over a set period of time with fixed, equal payments.

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OnDeck - Online term loan

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Est. APR

9.00-99.00%

Min. Credit Score

600

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

Pros

Cash can be available within the same business day.
Requires low minimum credit score.
Less paperwork than most lenders.

Cons

Fixed-fee structure means early repayment will not save interest.
Requires frequent (daily or weekly) repayments.
Requires business lien and personal guarantee.

Read full review

Qualifications:

Minimum credit score: 600.
Minimum time in business: 1 year.
Minimum annual revenue: $100,000.
No bankruptcies in the past 2 years.

May fund quickly

Our pick for

Short-term business loans for low rates

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Credibility Capital - Online term loan

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with Fundera by Nerdwallet

Est. APR

6.99-24.99%

Min. Credit Score

650

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.

Pros

Competitive rates among online lenders.
No prepayment penalty.
Extra monthly payments can save interest cost.

Cons

Requires high minimum credit score and revenue.
Requires business lien and may require personal guarantee.
Not available in Nevada, North Dakota, South Dakota or Vermont.

Read full review

Qualifications:

Minimum credit score: 650.
Minimum time in business: 2 years.
Minimum annual revenue: $200,000.
No bankruptcies in the past 5 years.

How Much Do You Need?

How do short-term business loans work?

Short-term loans for businesses are term loans with short repayment periods, typically ranging from three months to three years.

Because you have a shorter repayment period, your monthly payment (which includes interest and any fees) will be higher than a long-term business loan, which can have repayment terms of up to 25 years in some cases.

Pitfalls of short-term loans

While short-term business loans provide fast cash, they do come with some disadvantages, including:

Higher cost: Short-term business loans typically carry a higher annual percentage rate, or APR, than long-term loans. Use NerdWallet’s business loan calculator to figure out how much a loan will cost you.
More frequent repayments: Some lenders require payments daily or weekly as opposed to monthly. Although these payments are smaller, their frequency can be an issue for businesses that have uneven sales or don’t always hold much cash in a bank account.
Risk of debt trap: The speed and ease of short-term business loans can become addictive. Instead of repaying the debt in full, business owners may be enticed to refinance and roll over the debt into a new loan.

Compare small-business loans

NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged factors including lender trustworthiness, market scope and user experience, and arranged them by categories that include revenue and how long you’ve been in business.

Last updated on February 17, 2021

To recap our selections...