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 7 short-term business loans
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
American Express® Business Line of Credit | 5.0/5 Best for Short-term business lines of credit | $250,000 | 660 | Read Review |
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 |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Short-term business loans for bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Short-term business loans for startups | $150,000 | 600 | Read Review |
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Easy short-term business loans | $100,000 | 625 | with Fundera by NerdWallet |
National Funding - Online Term Loan with Fundera by NerdWallet | 4.0/5 Best for Unsecured short-term business loans | $500,000 | 600 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term business loans for working capital | $250,000 | 625 | with Fundera by NerdWallet |
Here are 7 short-term business loans
Best for Short-term business lines of credit
Best for Fast short-term business loans
Best for Short-term business loans for bad credit
Best for Short-term business loans for startups
Best for Easy short-term business loans
Best for Unsecured short-term business loans
Best for Short-term business loans for working capital
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Our pick for
Short-term business lines of credit
American Express offers short-term lines of credit from $2,000 to $250,000.
American Express® Business Line of Credit
Max loan
$250,000
Min. Credit score
660
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
Short-term business loans for bad credit
Fora Financial offers short-term loans for business owners with credit scores of 500 or higher.
Fora Financial - Online term loan
Max loan
$1,500,000
Min. Credit score
500
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
36.00-99.00%
Our pick for
Easy short-term business loans
You can get a short-term line of credit from Headway Capital with repayment terms up to 24 months. The lender offers a streamlined application and flexible qualification requirements.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
with Fundera by NerdWallet
Our pick for
Unsecured short-term business loans
National Funding offers short-term loans that don't require physical collateral or a down payment.
National Funding - Online Term Loan
Max loan
$500,000
Min. Credit score
600
Our pick for
Short-term business loans for working capital
OnDeck’s online term loan offers fast access to working capital with repayment terms up to 24 months.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
How do short-term business loans work?
Types of short-term business loans
Loan type | Overview | Use cases |
Lump sum of capital you borrow from a lender and repay, over a set period of time, with interest. | Short-term expenses, specific projects or purchases. | |
Gives you access to a set amount of funds which you can draw from as needed. You only pay interest on the funds that you draw. | Working capital, cash flow gaps, seasonal slows, emergency funding. | |
Unpaid invoices are sold to a factoring company at a discount in exchange for a cash advance. The company then assumes responsibility for collecting payment from your customers. | Business-to-business companies that have cash tied up in unpaid invoices. | |
Company gives you an upfront sum of capital that you repay using a percentage of your debit and credit card sales, plus a fee. | Businesses that have substantial debit and credit card sales. MCAs can have extremely high APRs, however, so they should be used as a last resort option. |
Pros and cons of short-term business loans
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.
- 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 5.75% to 11.91% 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.
How to get a short-term business loan
1. Assess your financing needs
2. Evaluate your qualifications
3. Find and compare lenders
4. Submit your application
- Business and personal tax returns.
- Business and personal bank statements.
- Business financial statements, such as a profit and loss statement.
5. Close your loan
Find the right business loan
Methodology
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.
