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
Lender | NerdWallet Rating | Max loan amount | Min. credit score | Next steps |
---|---|---|---|---|
Kabbage - Line of credit on Kabbage's website | 4.5/5 Best for Short-term business lines of credit | $250,000 | 640 | on Kabbage's website |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast short-term business loans | $250,000 | 625 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Unsecured short-term business loans | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Short-term business loans for startups | $150,000 | 600 | with Fundera by NerdWallet |
OnDeck - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Short-term business loans for bad credit | $100,000 | 625 | with Fundera by NerdWallet |
Here are 5 short-term business loans
Best for Short-term business lines of credit
Best for Fast short-term business loans
Best for Unsecured short-term business loans
Best for Short-term business loans for startups
Best for Short-term business loans for bad credit
Our pick for
Short-term business lines of credit
Kabbage offers short-term lines of credit of up to $250,000.
Kabbage - Line of credit
Max loan
$250,000
Min. Credit score
640
Our pick for
Fast short-term business loans
Bluevine offers short-term financing with terms up to 12 months. Funds can be available within hours of approval.
Bluevine - Line of credit
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
Our pick for
Unsecured short-term business loans
OnDeck offers short-term loans and doesn’t require physical collateral. Borrowers are subject to general liens on their business assets, however, and are required to sign a personal guarantee.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
29.90-97.30%
Our pick for
Short-term business loans for startups
Fundbox offers short-term funding for startups with six or more months in business.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
10.10-79.80%
Our pick for
Short-term business loans for bad credit
OnDeck offers short-term loans for business owners with credit scores of 625 or higher.
OnDeck - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
29.90-65.90%
How Much Do You Need?
Pros
- Wide range of uses. Short-term business loans typically don’t have restrictions on the ways you can use them. Because these loans have short repayment terms and fund quickly, however, they’re often best suited for immediate or unexpected expenses. You can use a short-term loan for working capital, to manage cash flow gaps, to take advantage of a new business opportunity, to pay for emergency repairs or cover costs during a slow season.
- Quick to fund. If you need a fast business loan, some short-term lenders can provide financing in as little as 24 hours. And compared with bank lenders, which may take weeks to process your application, short-term business loans are often funded within a matter of days.
- Streamlined applications. Most short-term business loans are issued by online lenders, which typically offer streamlined applications. You can usually complete and submit an online application in a matter of minutes, with minimal documentation required.
- Flexible eligibility criteria. Short-term lenders generally have more lenient qualification requirements compared with more traditional business lenders. Startups or businesses with bad credit may be able to qualify for a short-term business loan.
Cons
- Can be expensive. Short-term business loans typically have higher interest rates and fees compared with long-term loans. Business bank loans, for example, have annual percentage rates that range from approximately 3% to 7% — whereas short-term loans have rates that range anywhere from 10% to 99%.
- Frequent repayments. Short-term lenders often require payments daily or weekly as opposed to monthly. This means you’re making larger, more frequent payments over a shorter term. For some businesses, this payment schedule can impede cash flow and can be difficult to manage.
- Confusing contracts. Not all short-term lenders present interest rates and repayment terms in the same way — which can be confusing when you’re trying to compare products and determine the total cost of your loan. Although some lenders use APR, others might offer a simple interest rate, or even a factor rate. You should always calculate these rates (and fees) into an APR, as this is the best way to understand how much the loan costs.
- Risk of debt trap. The speed and ease of qualifying for some short-term business loans can be problematic if you can’t keep up with your payments. When these daily or weekly payments cut into your cash flow, you may feel the need to take out another loan or refinance in order to repay. With high interest rates and frequent repayments, this cycle of debt can be difficult to break.
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- Business and personal tax returns.
- Business and personal bank statements.
- Business financial statements, such as a profit and loss statement.