Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
Online business loans are loans you can apply for completely online. Although any lender can use an online application, online business loans are usually offered by financial technology companies, not banks.
Compared with traditional lenders, online business lenders typically have more flexible qualifications and streamlined underwriting processes — but charge higher rates for these conveniences. As a result, these small-business loans are a good fit if you can’t qualify with a bank or are willing to pay extra for faster funding.
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.
Accepts borrowers with a minimum credit score of 625.
Streamlined application process with minimal documentation required.
Can be used to build business credit.
Cons
Not available in North Dakota.
May require frequent weekly payments.
Interest rates can be high compared with traditional lenders.
OnDeck’s fast line of credit is a standout option for small-business owners with less-than-stellar credit who need working capital. This line of credit offers flexible repayment options, allowing you to choose between three term options and a weekly or monthly frequency. It’s also a good option for borrowers who don’t want to risk their company assets; OnDeck’s line of credit does not require physical collateral and it doesn’t take a UCC lien out on your business.
Accepts borrowers with a minimum credit score of 625.
Streamlined application process with minimal documentation required.
Can be used to build business credit.
Cons
Not available in North Dakota.
May require frequent weekly payments.
Interest rates can be high compared with traditional lenders.
OnDeck’s fast line of credit is a standout option for small-business owners with less-than-stellar credit who need working capital. This line of credit offers flexible repayment options, allowing you to choose between three term options and a weekly or monthly frequency. It’s also a good option for borrowers who don’t want to risk their company assets; OnDeck’s line of credit does not require physical collateral and it doesn’t take a UCC lien out on your business.
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.
In business for at least six months.
At least $20,000 per month in revenue.
No open bankruptcies or dismissed bankruptcies within the past year.
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.
In business for at least six months.
At least $20,000 per month in revenue.
No open bankruptcies or dismissed bankruptcies within the past year.
Not available in North Dakota, South Dakota or Nevada.
Rates can be high compared with traditional lenders.
Bluevine stands out for its fast funding speed and flexible qualification requirements. To get a line of credit, you can apply quickly online and receive funding in as little as 24 hours. Newer businesses and borrowers with bad credit may be able to qualify. Bluevine also offers a larger credit line maximum compared to some competitors and doesn’t charge draw or account maintenance fees.
Not available in North Dakota, South Dakota or Nevada.
Rates can be high compared with traditional lenders.
Bluevine stands out for its fast funding speed and flexible qualification requirements. To get a line of credit, you can apply quickly online and receive funding in as little as 24 hours. Newer businesses and borrowers with bad credit may be able to qualify. Bluevine also offers a larger credit line maximum compared to some competitors and doesn’t charge draw or account maintenance fees.
iBusiness Funding also offers SBA loans up to $5 million.
Cons
Charges an origination fee.
Must be in business for a minimum of 24 months.
Minimum credit score is higher than some other lenders.
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders. And with a large maximum funding amount, this loan can be used for a variety of long-term expansion projects, as well as refinancing existing debt.
iBusiness Funding also offers SBA loans up to $5 million.
Cons
Charges an origination fee.
Must be in business for a minimum of 24 months.
Minimum credit score is higher than some other lenders.
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders. And with a large maximum funding amount, this loan can be used for a variety of long-term expansion projects, as well as refinancing existing debt.
Rates can be high compared with traditional banks.
May have to pay an origination fee.
Fundomate provides access to short-term funding in as little as 24 hours. It can be a good option for businesses that have significant debt and credit card sales — as the product functions like a merchant cash advance. Unlike some MCAs, however, Fundomate gives you a few different options for how you can structure repayments.
Rates can be high compared with traditional banks.
May have to pay an origination fee.
Fundomate provides access to short-term funding in as little as 24 hours. It can be a good option for businesses that have significant debt and credit card sales — as the product functions like a merchant cash advance. Unlike some MCAs, however, Fundomate gives you a few different options for how you can structure repayments.
Offers loans to startups and borrowers with bad credit.
No collateral or down payment required.
Cons
Charges a factor rate that makes it more difficult to compare costs with other lenders.
Requires higher annual revenue than other online lenders.
Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
Charges an origination fee.
National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
Offers loans to startups and borrowers with bad credit.
No collateral or down payment required.
Cons
Charges a factor rate that makes it more difficult to compare costs with other lenders.
Requires higher annual revenue than other online lenders.
Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
Charges an origination fee.
National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
Financing available within two business days 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 two business days after approval.
Financing available within two business days 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 two business days after approval.
Minimum credit score: 600.
Minimum time in business: 3 months.
Minimum annual revenue: $30,000.
Jump to
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
What is an online business loan?
An online business loan can be a term loan, line of credit or other type of business financing offered by a nonbank or alternative lender. While banks or credit unions may require you to visit a branch, online lenders typically process and fund small-business loans entirely online.
Because everything’s done online, these loans are usually fast to fund, with more flexible qualification requirements than other types of business financing. Some online business lenders even work with startups or businesses with bad credit.
Speed and flexibility come with a cost, however. Online business loans tend to have higher interest rates than bank or U.S. Small Business Administration loans. Annual percentage rates for online loans range from 6% to 99%.
Many online lenders don’t require collateral — assets such as real estate, equipment and unpaid invoices that can be seized by the lender if you don’t repay the loan. However, offering collateral may help you get lower interest rates and better terms, such as a longer repayment period.
Online business loans are a safe and legitimate way to fund your business. These loans can be good options if you need fast access to cash or if you can’t qualify for other types of business loans.
Predatory lenders do exist online, however, looking to take advantage of small businesses. Watch for these red flags: Lenders that guarantee approval, make you pay a fee upfront or don’t have a physical address.
How fast can I get an online business loan?
Some online business lenders can approve applications within minutes and offer funding within 24 hours. Ultimately, funding speed varies based on the individual lender, but many online lenders issue loans within a matter of days.
Can I get an online business loan without collateral?
Many online business lenders don’t require you to provide physical collateral to secure your loan. Your lender may take out a blanket lien on your business assets, however. This means that if you don’t repay your loan, your lender may take possession of other business assets, like inventory, accounts receivable or real estate, to recover its losses. You’ll also likely need to sign a personal guarantee, which holds you personally responsible to pay back the loan with your own assets if your business goes belly up.
While collateral may not be required for an online business loan, you may be able to offer it to access better interest rates and repayment terms.
Can I get an online business loan with a bad credit score?
An online business loan can be a good option for businesses with low credit scores. Online lenders generally have more flexible qualification requirements than traditional lenders like banks. For example, Fora Financial, one of the lenders on our list, has a minimum credit score requirement of 570.
There are many types of online loans you can use to finance your small business. Here are some of the most common options.
Business term loans
Small-business term loans provide a lump sum of cash that you repay, with interest, over a set period of time. Some online lenders offer short-term loans, with terms of 12 months or less — while others offer longer repayment terms of seven years, for example.
Because you can repay business term loans over an extended period, these online loans are usually a good choice for larger investments and long-term growth.
Business lines of credit
A business line of credit allows you to withdraw cash as needed up to a set limit. You only pay interest on the money you’ve borrowed. You repay the money you withdraw over a specific period of time, with minimum payments due typically every week or month.
Compared with term loans, business lines of credit are more flexible — making them a good choice for managing cash flow, covering payroll and other short-term needs.
Equipment financing
Equipment financing is a type of small-business loan used to buy machinery or equipment. Equipment loans are typically structured as term loans — with repayment periods often based on the expected life of the equipment you’re looking to buy. Depending on the equipment, that could mean loan terms of a year to up to 10 years or more.
With equipment financing, the equipment you purchase typically serves as collateral on the loan, which means you may not have to rely as heavily on your credit or financial history to qualify.
Invoice financing and invoice factoring
Invoice financing allows you to borrow money against your outstanding invoices. A lender gives you a percentage of your unpaid invoices upfront in the form of a loan or line of credit with the invoices serving as collateral. Once your customer pays the invoice, you pay the lender back the amount borrowed, plus fees and interest.
With invoice factoring, on the other hand, you sell your outstanding invoices to a factoring company at a discount. The factoring company then collects payments from your customers directly.
Both of these types of financing are good options for business-to-business companies that need to cover cash flow gaps. Invoice factoring and financing can also be easier to qualify for than other types of business loans — but may have higher interest rates.
Merchant cash advances
A merchant cash advance, or MCA, provides you with a lump sum of money that you repay using a percentage of your future credit and debit card sales, plus a fee. A merchant cash advance isn't technically a loan — instead, an MCA company is buying your future sales at a discount.
Although merchant cash advances are fast to fund and easy to qualify for, they’re one of the most expensive forms of online business financing. NerdWallet recommends considering all other options before turning to an MCA.
Can receive funds within days or as quickly as 24 hours.
Fast application processes with minimal documentation required.
Lots of loan types to choose from with a range of interest rates, repayment terms and loan amounts.
Qualification requirements are typically more flexible and some lenders will also work with new businesses or those with bad credit.
Cons
Generally more expensive than bank and SBA loans. APRs for online loans can vary anywhere from 6% to 99%.
May require daily or weekly payments, and may have lower maximum funding amounts and shorter repayment periods than bank loans.
Not ideal if you’re looking to build a relationship with a lender or have someone address your questions one-on-one.
Some predatory lenders try to trap businesses with offers that seem too good to be true, especially if those businesses are having trouble finding financing elsewhere.
Although loan applications vary from lender to lender, you’ll typically be able to apply for an online business loan within minutes. Here are the steps you can follow:
1. Understand your financing needs
The amount of funding you need and what type of online loan is best for your business will largely depend on how you will use funding and how much you can afford.
2. Evaluate your qualifications
Most lenders look at your personal credit score, time in business and annual revenue when reviewing your loan application. Online lenders may also look at your cash flow, financial accounts or outstanding invoices. You’ll want to review your business qualifications ahead of time so you know where your company stands. Also, you may want to estimate the value of any assets you plan to offer as collateral for your loan.
With most online lenders, you should be able to complete and submit your business loan application in minutes. Some lenders have you fill out a simple form and connect your financial data to their system so they can evaluate your business information more quickly and provide a faster application decision.
You may also need to upload or email financial documents, such as:
Business and personal tax returns.
Business and personal bank statements.
Business financial statements (e.g., profit and loss statement, balance sheet).
Additionally, your lender may secure the loan by taking out a blanket lien on your business assets — and you’ll likely be required to sign a personal guarantee.
Online lenders typically fund business loan applications within a matter of days. Some lenders offer funding in as little as 24 hours. Before signing a business loan agreement, make sure you review the terms and conditions and talk to your lender if you have any questions.
Alternatives to online business loans
If an online loan is not the right fit for your business, you may want to consider these other types of funding.
SBA loans
SBA loans offer low interest rates and long repayment terms. You’ll often need multiple years in business and good credit to qualify, but SBA microloans typically offer more flexible eligibility requirements and may be an option if you need $50,000 or less in funding. SBA loans are generally slow to fund.
Business credit cards
Business credit cards can be used in a similar way to a business line of credit — they are a revolving source of capital, and you only pay interest on money you’ve spent. They may be easier to get than business loans because qualification typically relies on your personal credit, instead of your business’s age and revenue.
Bootstrapping
Bootstrapping involves self-funding your business through your personal resources which may include using your own savings, taking out personal loans and tapping into retirement accounts, including withdrawals called rollovers as business startups (ROBS) transactions. Self-funding allows you to avoid both debt and ownership dilution; however, if your business fails, you’ll lose the money you sunk into it.
Family and friends loans
When traditional forms of financing are not available, family and friends loans for your business may be a funding option. Although this type of loan doesn’t typically involve a formal loan application, you do want to put the loan details in writing to avoid any misunderstandings that could affect your personal relationships.
Last updated on January 29, 2025
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from 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.
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.