Best Online Business Loans of 2025

Online business lenders often provide faster and easier access to capital than traditional lenders, though at higher interest rates.

best online business loans: More details

OnDeck: Best for fast line of credit draws icon

OnDeck: Best for fast line of credit draws

OnDeck offers a line of credit of up to $100,000 that can be approved and funded within four business days. Subsequent draws between $1,000 and $10,000 can be funded instantly via a debit card.

May fund quickly
OnDeck - Line of credit

OnDeck - Line of credit

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Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 months

Pros

  • Fast access to working capital.
  • 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.

Pros

  • Fast access to working capital.
  • 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.

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Fora Financial: Best for borrowers who have bad credit icon

Fora Financial: Best for borrowers who have bad credit

For borrowers who can’t qualify for traditional funding because of bad personal credit, Fora Financial’s minimum credit score requirement is 570, lower than any other lender on our list. (Fora only conducts a soft credit pull when you apply, so there’s no unnecessary harm to your credit if you don’t get approved.)

Fora Financial - Online term loan

Fora Financial - Online term loan

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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.

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Bluevine: Best for same-day funding icon

Bluevine: Best for same-day funding

For a small added fee, Bluevine can approve and fund a line of credit within a single business day, and it can fund approved draws instantly if you have a Bluevine Business Checking account.

May fund quickly
Bluevine - Line of credit

Bluevine - Line of credit

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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.

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iBusiness Funding: Best for long repayment terms icon

iBusiness Funding: Best for long repayment terms

iBusiness Funding’s business loans can have terms up to seven years, with lower interest rates than many other online lenders, making it an ideal online option for larger purchases to finance over a long period of time.

May fund quickly
iBusiness Funding - Online term loan

iBusiness Funding - Online term loan

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Max loan amount
$500,000
Min. credit score
660
Term length
6 months to 5 years

Pros

  • Cash can be available within two business days.
  • Competitive rates among online lenders.
  • Terms up to five years.
  • 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.

Pros

  • Cash can be available within two business days.
  • Competitive rates among online lenders.
  • Terms up to five years.
  • 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.

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Fundomate: Best for overall flexibility icon

Fundomate: Best for overall flexibility

Fundomate provides flexible financing options for business owners seeking fast access to cash to expand their business, lease equipment, cover advertising costs and more. Borrowers have the choice to repay their loan daily, weekly or biweekly.

Fundomate- Business funding

Fundomate- Business funding

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Max loan amount
$500,000
Min. credit score
600
Term length
Up to 18 months

Pros

  • Cash can be available in as little as 24 hours.
  • Can get a discount for prepaying your loan.

Cons

  • Rates can be high compared with traditional banks.
  • May have to pay an origination fee.

Pros

  • Cash can be available in as little as 24 hours.
  • Can get a discount for prepaying your loan.

Cons

  • Rates can be high compared with traditional banks.
  • May have to pay an origination fee.

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National Funding: Best for equipment financing icon

National Funding: Best for equipment financing

National Funding’s equipment loan allows business owners to borrow up to $150,000 to buy new or pre-owned equipment, including vehicles, medical equipment, technology and office furniture. Fast funding allows you to stay competitive as a buyer and capitalize on the best opportunities.

National Funding - Equipment financing

National Funding - Equipment financing

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Max loan amount
$150,000
Min. credit score
600
Term length
24 months to 5 years

Pros

  • Funding in as little as 24 hours.
  • Prepayment discounts available.
  • 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.

Pros

  • Funding in as little as 24 hours.
  • Prepayment discounts available.
  • 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.

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Fundbox: Best for startups icon

Fundbox: Best for startups

Fundbox accepts applications from businesses with as little as three months in business and low monthly revenue requirements, making it a good option for businesses that are just getting up and running.

May fund quickly
Fundbox - Line of credit

Fundbox - Line of credit

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Max loan amount
$250,000
Min. credit score
600
Term length
3 to 6 months

Pros

  • 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).

Pros

  • 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).

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250+ small-business products reviewed and rated by our team of experts.
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Objective and comprehensive business loans ratings rubric. (Learn more about our star ratings.)
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.

Frequently asked questions

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.
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.
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.
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.

Types of online business loans

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.

Pros

  • No need to visit a branch location.
  • 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.

How to apply for an online business loan

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.

3. Compare lenders

You should explore and compare multiple private business loans to find the best fit for your needs. This includes reviewing factors such as:
  • Loan amounts.
  • Interest rates.
  • Additional loan fees.
  • Repayment terms.
  • Prepayment penalties.
  • Customer support options.
You’ll also want to research the lender and read reviews to make sure they’re reputable.

4. Submit your application

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.

5. Review your loan agreement and receive funds

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
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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.
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