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.
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 5 short-term business loans 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 lines of credit | $250,000 | 640 | on Kabbage's website |
Bluevine - Line of credit with Fundera by NerdWallet | Best for Short-term lines of credit | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit with Fundera by NerdWallet | Best for Short-term lines of credit | $150,000 | 600 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | Best for Short-term business loans for fast cash | $250,000 | 600 | with Fundera by NerdWallet |
Credibility Capital - Online term loan with Fundera by NerdWallet | Best for Short-term business loans for low rates | $500,000 | 650 | with Fundera by NerdWallet |
Our picks for
Short-term lines of credit
Kabbage - Line of credit
Max Loan Amount
$250,000
Min. Credit Score
640
Kabbage loans are a good option for business owners with fair credit who want quick access to working capital.
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. Credit Score
625
Est. APR
15.00-78.00%
Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
Fundbox - Line of credit
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
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.
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
Our pick for
Short-term business loans for low rates
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?
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.
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.
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 December 15, 2021
To recap our selections...
Best Short-Term Business Loans of July 2022
- Kabbage - Line of credit: Best for Short-term lines of credit
- Bluevine - Line of credit: Best for Short-term lines of credit
- Fundbox - Line of credit: Best for Short-term lines of credit
- OnDeck - Online term loan: Best for Short-term business loans for fast cash
- Credibility Capital - Online term loan: Best for Short-term business loans for low rates
Frequently Asked Questions
A short-term business loan provides a lump sum upfront to a borrower and has a repayment period ranging from three months to three years. The short repayment period means this type of financing is best to manage an immediate cash flow gap, an emergency or immediate financing needs.
Besides a short-term business loan, you can turn to other financing options. Business credit cards can offer immediate funding, especially if you need smaller amounts than what a business term loan would provide. If you have a business with unpaid invoices, you can turn to invoice financing to turn them into cash.