Best Short-Term Business Loans of July 2025
Compare personalized short-term business loan offers, with terms ranging from three to 24 months. Select your business type to get started.
| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 with Fundera by NerdWallet | Read expert review | Best for fast funding | $250,000 | 12 months | 14% | Up to 6 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Best for bad credit | $300,000 | 6 months | Undisclosed | Undisclosed | with Fundera by NerdWallet | |
 with Fundera by NerdWallet | Read expert review | Best for large loan amounts | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for working capital needs | $250,000 | 12 months | 31.3% | 18 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for business-to-business companies | $5,000,000 | Undisclosed | Undisclosed | 1 to 3 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for startups | $250,000 | 3 months | 36% | 3 to 6 months | with Fundera by NerdWallet |
best short-term business loans: More details
Bluevine: Best for fast funding
Term length: Six months.
May fund quickly
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Term length
Up to 6 months
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.
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.
with Fundera by NerdWallet
Expansion Capital Group: Best for bad credit
Term length: Three to 12 months.
Expansion Capital Group - Merchant cash advance
with Fundera by NerdWallet
Max loan amount
$300,000
Min. credit score
500
Term length
Undisclosed
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.
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.
with Fundera by NerdWallet
Fora Financial: Best for large loan amounts
Term length: Four to 18 months.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 18 months
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.
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.
with Fundera by NerdWallet
OnDeck: Best for working capital needs
Term length: 18 to 24 months.
May fund quickly
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Term length
18 to 24 months
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.
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.
with Fundera by NerdWallet
AltLINE: Best for business-to-business companies
Term length: Invoices that are up to 90 days outstanding.
AltLINE - Invoice factoring
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
300
Term length
1 to 3 months
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.
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.
with Fundera by NerdWallet
Fundbox: Best for startups
Term length: Three or six months.
May fund quickly
Fundbox - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
600
Term length
3 to 6 months
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).
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).
with Fundera by NerdWallet
Table of contents
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.
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
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
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 sign a personal guarantee general lien
5. Close your loan
Before you sign a business loan agreement
Pros and cons of short-term business loans
Pros
- Can be used for a wide variety of purposes, such as immediate or unexpected expenses.
- May be able to get financing as fast as the same day.
- Usually issued by online lenders, who typically offer streamlined applications with minimal documentation.
- Can have lenient qualification requirements; startups or borrowers with bad credit may qualify.
Cons
- Typically have higher interest rates and fees compared to long-term loans.
- Often require daily or weekly repayments, which can impede cash flow.
- Frequent payments and high interest rates can create a cycle of debt that’s difficult to break.
How 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
Is a short-term loan good for business?
Here are situations when a short-term business loan may be the right fit for your needs:
- Working capital needs. Short-term business loans can provide quick access to funds that can be used to cover day-to-day business operations and expenses such as rent, supplies,
inventory payroll working capital loans - 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.
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
Alternatives to short-term business loans
A short-term loan may not be the best option for all situations. In these instances, you may consider an alternative:
Business credit cards Personal loans. Business grants Crowdfunding
Frequently asked questions
Who should get a short-term business loan?
How quickly can I get a short-term business loan?
Can I get a short-term business loan with bad credit?
How long is a short-term business loan?
Are there short-term loans for startup businesses?
*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
Last updated on May 28, 2025
How Fundera by NerdWallet works
Getting a business loan can be challenging, and several factors —
cost, speed, repayment schedule — can play a role in deciding which
product is right for you. Let us help you through the process.
Get started
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
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
