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 cash flow loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
American Express® Business Line of Credit | 5.0/5 Best for Cash flow lines of credit | $250,000 | 660 | |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term cash flow loans | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Cash flow loans for startups | $150,000 | 600 | |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Cash flow loans for bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast cash flow loans | $250,000 | 625 | with Fundera by NerdWallet |
Here are 5 cash flow loans
Best for Cash flow lines of credit
Max Amount
$250,000
Min. Credit Score
660
Best for Short-term cash flow loans
Best for Cash flow loans for startups
Max Amount
$150,000
Min. Credit Score
600
Best for Cash flow loans for bad credit
Best for Fast cash flow loans
I'M INTERESTED IN:
Our pick for
Cash flow lines of credit
American Express offers business lines of credit from $2,000 to $250,000 that can be used for working capital needs.
American Express® Business Line of Credit
Max loan
$250,000
Min. Credit score
660
Our pick for
Short-term cash flow loans
OnDeck’s term loan is available in amounts up to $250,000 with repayment terms up to 24 months. It can be a good option for specific investments in your business.
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
with Fundera by NerdWallet
Our pick for
Cash flow loans for startups
Fundbox offers lines of credit up to $150,000. You may be able to qualify with just six months in business.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Cash flow loans for bad credit
Fora Financial’s term loan can be used for a wide variety of purposes. You may be able to qualify with a minimum personal credit score of 500.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan
$1,500,000
Min. Credit score
500
with Fundera by NerdWallet
Our pick for
Fast cash flow loans
Bluevine’s revolving line of credit is available up to $250,000 with repayment terms of six or 12 months. You can receive approval and get funding in as fast as 24 hours.
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
with Fundera by NerdWallet
What is a cash flow loan?
- Purchasing inventory.
- Hiring staff.
- Making payroll.
- Covering day-to-day expenses (e.g., rent, insurance).
- Managing a seasonal slowdown or cash flow gap.
How do cash flow loans work?
Cash flow loan vs. traditional small-business loan
Cash flow loan | Traditional small-business loan | |
---|---|---|
Qualifications | Based on historical and projected performance, or cash flow, of your business. | Based on time in business, business and personal credit histories, revenue, collateral and debt service coverage ratio (DSCR). |
Collateral | Personal guarantee or UCC lien. | May also require physical collateral like cash deposits, vehicles or property. |
Terms | Typically short term loans – between one year and 18 months. | Between two to 10 years, or up to 25 years for certain SBA loans or commercial real estate loans. |
Interest rates | Between 20% to 99%. | Depending on lender and collateral, between 4% and 99%. |
Pros and cons of cash flow loans
Pros
- Quick to fund. If you need a fast business loan, some cash flow lenders can approve and fund applications in just 24 hours. And while bank and SBA lenders may take weeks or even months to issue financing, most cash flow loans are available within a few business days.
- Streamlined applications. Cash flow loans are usually issued by online lenders, who typically offer a streamlined application process. You can often complete and submit a simple application with minimal documentation required. Plus, cash flow lenders may leverage technology to underwrite your application — asking you to connect your financial accounts to their online platform — instead of having you submit documents for them to review manually.
- Flexible requirements. Cash flow lenders prioritize your historical and projected revenue when evaluating your application — meaning they’re generally more flexible when it comes to traditional eligibility requirements. Although requirements vary by lender, startups and/or businesses with bad credit may be able to qualify.
- No physical collateral required. You don’t need to put up physical collateral, like equipment or real estate, to secure a cash flow loan. Asset-based lenders, on the other hand, will require collateral to back your financing.
Cons
- Can be expensive. Because of their unique underwriting process and lack of collateral, cash flow loans are considered riskier than traditional business loans. To offset this risk, lenders typically charge higher interest rates and fees — annual percentage rates can range anywhere from 20% to 99%. Interest rates can even reach triple digits with products like merchant cash advances.
- Frequent repayments. Cash flow loans tend to have short terms and frequent repayments — daily or weekly — instead of monthly. This payment schedule can impact your cash flow and be difficult to manage, particularly if you’re a seasonal business or took out the loan to fill a cash flow gap. The frequent payments combined with high interest rates can trap you into a cycle of debt that’s hard to break out of, especially if you need to take another loan or refinance an existing one to repay.
- Personal guarantee/business lien required. Although you won’t need to secure your cash flow loan with physical collateral, most lenders will require you to sign a personal guarantee. This agreement states that you’ll pay back your loan with your personal assets if your business defaults. Some lenders may also take out a Uniform Commercial Code lien on your business assets. This document allows a lender to use your business assets to recoup its losses in the case of default.
How to get a cash flow loan
Understand your financing needs
Evaluate your business credentials
Research and compare lenders
Submit your application
- Personal and business tax returns.
- Personal and business bank statements.
- Business financial statements (e.g., profit and loss statement or a balance sheet).
Review your loan agreement
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.