Best Short-Term Business Loans of May 2025
Compare personalized short-term business loan offers, with terms ranging from three to 24 months. Choose why you need funding to get started.
| Loan | NerdWallet Rating | Best For | Max loan amount | Min. credit score | APR range | Max term length | Learn more |
|---|---|---|---|---|---|---|---|
 Bluevine - Line of credit Read reviewwith Fundera by NerdWallet | Best for fast funding | $250,000 | 625 | 14.00-48.00% | 6 months | with Fundera by NerdWallet | |
 Expansion Capital Group - Merchant cash advance with Fundera by NerdWallet | Best for bad credit | $300,000 | 500 | Undisclosed |
| with Fundera by NerdWallet | |
 OnDeck - Online term loan Read reviewwith Fundera by NerdWallet | Best for working capital needs | $250,000 | 625 | 27.20-99.90% | 24 months | with Fundera by NerdWallet | |
 Fora Financial - Online term loan Read reviewwith Fundera by NerdWallet | Best for large loan amounts | $1,500,000 | 570 | Undisclosed | 18 months | with Fundera by NerdWallet | |
 Headway Capital - Line of credit Read reviewwith Fundera by NerdWallet | Best for easy application process | $100,000 | 625 | 35.00-80.00% | 24 months | with Fundera by NerdWallet | |
 QuickBridge - Online term loan Read reviewwith Fundera by NerdWallet | Best for prepayment discounts | $500,000 | 600 | Undisclosed | 18 months | with Fundera by NerdWallet | |
 Fundbox - Line of credit Read reviewwith Fundera by NerdWallet | Best for startups | $150,000 | 600 | 36.00-99.00% | 6 months | with Fundera by NerdWallet | |
 American Express® Business Line of Credit* Read reviewwith Fundera by NerdWallet | Best for business lines of credit | $250,000 | 660 | Undisclosed | 24 months | with Fundera by NerdWallet | |
 AltLINE - Invoice factoring Read reviewwith Fundera by NerdWallet | Best for business-to-business companies | $5,000,000 | 300 | Undisclosed | 3 months | with Fundera by NerdWallet |
A closer look at our picks for the best small business loans
Best for fast funding
May fund quickly
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
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with Fundera by NerdWallet
Best for bad credit
Expansion Capital Group - Merchant cash advance
with Fundera by NerdWallet
Max loan amount
$300,000
Min. credit score
500
Pros
- Simple application with minimal documentation required.
- Low minimum credit score requirement.
- Daily or weekly repayment available.
- Offers prepayment discounts.
Cons
- Business assets required as collateral in some cases.
- Factor rate and fee information not available on website.
- Charges an origination fee and a monthly servicing fee.
Expansion Capital Group stands out as a merchant cash advance option for startups and borrowers with bad credit. The company has a simple and streamlined application process and may be able to issue funding within hours of you signing your agreement. Expansion Capital Group also offers prepayment discounts if you’re able to repay your advance early.
with Fundera by NerdWallet
Best for working capital needs
May fund quickly
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
OnDeck’s short-term loan is a good option for making one-time investments in your business, such as opening a new location or renovating your space. This loan offers fast funding (sometimes as quickly as the same day) for borrowers who may not qualify for more traditional financing options. OnDeck’s short-term loan can also be used to establish and build business credit — as the lender reports your payment history to the three commercial credit bureaus.
with Fundera by NerdWallet
Best for large loan amounts
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial stands out as a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide prepayment discounts for those who repay early.
with Fundera by NerdWallet
Best for easy application process
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Headway Capital offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
with Fundera by NerdWallet
Best for prepayment discounts
QuickBridge - Online term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Startups and borrowers with bad credit may qualify.
- Prepayment discounts available.
- No collateral required.
Cons
- Requires higher annual revenue than other online lenders.
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Charges an origination fee.
QuickBridge stands out as a fast financing option for borrowers who may not qualify for more traditional business loans. QuickBridge generally has flexible eligibility requirements, although you’ll need strong revenue to get funded. You can apply for QuickBridge’s short-term loan in minutes online and work with a dedicated funding specialist to complete the process. Funding is available in as little as 24 hours after approval.
with Fundera by NerdWallet
Best for startups
May fund quickly
Fundbox - Line of credit
with Fundera by NerdWallet
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox is one of the best online line of credit options for startups. Businesses with just three months in business may be able to qualify. Fundbox is also a good option for borrowers with bad credit and businesses with low revenue. The lender offers a flexible short-term line of credit that can fund within one business day after approval.
with Fundera by NerdWallet
Best for business lines of credit
American Express® Business Line of Credit*
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
660
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital. This line of credit offers a monthly repayment schedule and no extra fees. Existing American Express customers can login to their accounts to see if they’re pre-approved for funding.
with Fundera by NerdWallet
Best for business-to-business companies
AltLINE - Invoice factoring
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
300
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
If you’re a business-to-business company with capital tied up in unpaid invoices, altLINE can provide fast access to cash. The lender offers competitive factoring rates and can factor large invoice amounts. AltLINE stands out for its flexible underwriting process that focuses heavily on the creditworthiness of your customers, as opposed to more traditional business loan requirements. This makes it a worthwhile option for startups or borrowers with bad credit.
with Fundera by NerdWallet
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Table of contents
A closer look at the best short-term business loans
Bluevine
Best for fast funding
Term length:
6
months. Qualifications
Pros and cons
Expansion Capital Group
Best for bad credit
Term length: 3 to 12 months.
Qualifications
Pros and cons
OnDeck
Best for working capital needs
Term length:
18
to 24
months. Qualifications
Pros and cons
Fora Financial
Best for large loan amounts
Term length:
4
to 18
months. Qualifications
Pros and cons
Headway Capital
Best for easy application process
Term length:
12
, 18 or 24
months. Qualifications
Pros and cons
QuickBridge
Best for prepayment discounts
Term length:
4
to 18
months. Qualifications
Pros and cons
Fundbox
Best for startups
Term length:
3
or 6
months. Qualifications
Pros and cons
American Express® Business Line of Credit
Best for business lines of credit
Term length:
6
, 12, 18 or 24
months. Monthly fees
Qualifications
Pros and cons
*See disclosure at bottom of page.
AltLINE
Best for business-to-business companies
Term length: Invoices that are up to 90 days outstanding.
Qualifications
Pros and cons
What is a short-term business loan?
A short-term business loan is a small-business loan
Short-term business loans can be useful for covering working capital needs and short-term expenses, paying for emergency expenses or taking advantage of an unexpected business opportunity.
How do short-term business loans work?
Short-term business loans are generally structured as lump sums of capital that you pay back over a set period of time, or term. These loans are usually repaid on a daily or weekly basis, meaning you’ll make larger, more frequent payments than you would with a long-term business loan
Short-term loans are most often issued by online lenders
Short-term business loan interest rates
Short-term business loans generally have higher interest rates
And although some short-term lenders use an annual percentage rate, others might offer a simple interest rate, or even a factor rate
» MORE: Estimate loan costs with NerdWallet’s business loan calculator
Types of short-term business loans
Here are some of the most common types of short-term business loans:
Business term loan
A business term loan
Business line of credit
A business line of credit emergency funding
Invoice factoring
For business-to-business companies, invoice factoring factoring company
Merchant cash advance
A merchant cash advance MCA companies
Pros and cons of short-term business loans
Pros
✅ Wide range of uses.
✅ Quick to fund.
✅ Streamlined applications.
✅ Flexible eligibility criteria.
Cons
❌ Can be expensive.
❌ Frequent repayments.
❌ Risk of debt trap.
When to consider a short-term business loan
Here are situations when a short-term business loan may be the right fit for your needs:
- Unexpected business opportunity. If you receive an unexpected business opportunity, a short-term loan may be a good option to help grow revenue or even cut costs. It can provide the funds needed to take on a new customer and hire additional staff or take advantage of an inventory discount for buying in bulk, for example.
- Seasonal cash flow gaps. Seasonal businesses often experience interruptions in cash flow during the off-season. A short-term business loan can provide quick access to the funds you need to keep operations running when sales fall off or meet the costs of preparing for the upcoming season.
- Emergency expenses. If you need to replace a crucial piece of broken equipment, a short-term loan may be a good option. These loans can help you cover emergency expenses as a result of a natural disaster, accident or economic difficulty.
How to get a short-term business loan
Follow these steps to get a short-term business loan:
1. Assess your financing needs
Think about how much funding you need and what you want to use it for. You’ll also want to consider what type of business loan
Since short-term business loans have more frequent payments and higher interest rates, make sure your business can afford any debt you take on.
2. Evaluate your qualifications
Although short-term lenders often have flexible business loan requirements check your credit score
3. Find and compare lenders
Once you have an understanding of your funding needs and qualifications, you can explore lenders to find the best choice for your business. As you compare different options, consider factors such as interest rates, additional fees, repayment terms, funding speed and lender reputation.
4. Submit your application
Short-term lenders typically offer a streamlined, online application that can be completed fairly quickly with minimal documentation. Although business loan application
Short-term lenders don’t usually require physical collateral to secure your loan, but you’ll likely have to sign a personal guarantee general lien
5. Close your loan
Before you sign a business loan agreement
When to consider alternatives to short-term business loans
In some cases, a short-term loan may not be your best option. In these instances, you may consider an alternative:
Situation | Financing alternative | |
|---|---|---|
Your loan payment amount is too large | If the payment amount on your short-term loan is outside your budget, a business loan with a longer repayment period may offer a lower monthly payment. Long-term business loans can have terms up to 10 years, and even 25 years, in some cases. Depending on the rate, however, you may pay more in interest over the life of the loan. | |
Frequent payments will disrupt your cash flow | Short-term lenders often require daily or weekly payments. A business credit card, however, operates similar to a business line of credit and typically requires monthly payments. But carrying a balance instead of paying off the card in full each month can get expensive. | |
Taking on additional debt isn’t possible | If your business isn’t generating enough revenue to take on another debt payment, business grants may be an option. Business grants don’t require repayment, but competition for them is strong. | |
You can’t meet lender requirements | If you don’t meet lender requirements for a loan because you have a low credit score or haven’t been in business long, consider using crowdfunding to create a fundraising campaign for your business. It can be a low-cost way to raise capital and also an opportunity to build an enthusiastic client base — without taking on additional debt. |
Frequently asked questions
How long is a short-term business loan?
Are there short-term loans for startup businesses?
Can I get a short-term business loan with no credit check?
*
American Express® Business Line of Credit*
offers two loan types, installment loans and single repayment loans for eligible borrowers. All loan term types, loan term lengths, and pricing are subject to eligibility requirements, application, and final approval. This content contains general information about the American Express® Business Line of Credit*
installment loan type only. Last updated on May 19, 2025
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cost, speed, repayment schedule — can play a role in deciding which
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If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
To come up with our list of the best short-term business loans, we selected lenders with term lengths of 24 months or less and strong NerdWallet star ratings.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans editorial guidelines
