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 line of credit draws | $100,000 | 12 months | 40% | 12 to 24 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for borrowers who have bad credit | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for same-day funding | $250,000 | 12 months | 14% | Up to 6 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for long repayment terms | $500,000 | 24 months | 15.22% | 6 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Best for overall flexibility | $500,000 | 12 months | 18% | Up to 18 months | with Fundera by NerdWallet | |
with Fundera by NerdWallet | Read expert review | Best for equipment financing | $150,000 | 6 months | Undisclosed | 24 months to 5 years | 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 online business loans: More details
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.
OnDeck - Line of credit
with Fundera by NerdWallet
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.
with Fundera by NerdWallet
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
with Fundera by NerdWallet
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
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.
Bluevine - Line of credit
with Fundera by NerdWallet
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
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.
iBusiness Funding - Online term loan
with Fundera by NerdWallet
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.
with Fundera by NerdWallet
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
with Fundera by NerdWallet
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.
with Fundera by NerdWallet
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
with Fundera by NerdWallet
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.
with Fundera by NerdWallet
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.
Fundbox - Line of credit
with Fundera by NerdWallet
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).
with Fundera by NerdWallet
Why trust NerdWallet
What is an online business loan?
Frequently asked questions
Types of online business loans
Business term loans
Business lines of credit
Equipment financing
Invoice financing and invoice factoring
Merchant cash advances
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
1. Understand your financing needs
2. Evaluate your qualifications
3. Compare lenders
- Loan amounts.
- Interest rates.
- Additional loan fees.
- Repayment terms.
- Prepayment penalties.
- Customer support options.
4. Submit your application
- Business and personal tax returns.
- Business and personal bank statements.
- Business financial statements (e.g., profit and loss statement, balance sheet).
5. Review your loan agreement and receive funds
Alternatives to online business loans
SBA loans
Business credit cards
Bootstrapping
Family and friends loans
How Fundera by NerdWallet works
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.