Loan | NerdWallet Rating | Best For | Max loan amount | Min. credit score | APR range | Max term length | Learn more |
---|---|---|---|---|---|---|---|
Bluevine - Line of credit Read reviewwith Fundera by NerdWallet | Best for fast funding | $250,000 | 625 | 14.00-48.00% | 6 months | with Fundera by NerdWallet | |
with Fundera by NerdWallet | Best for bad credit | $300,000 | 500 | Undisclosed |
| with Fundera by NerdWallet | |
OnDeck - Online term loan Read reviewwith Fundera by NerdWallet | Best for working capital needs | $250,000 | 625 | 27.20-99.90% | 24 months | with Fundera by NerdWallet | |
Fora Financial - Online term loan Read reviewwith Fundera by NerdWallet | Best for large loan amounts | $1,500,000 | 570 | Undisclosed | 18 months | with Fundera by NerdWallet | |
Headway Capital - Line of credit Read reviewwith Fundera by NerdWallet | Best for easy application process | $100,000 | 625 | 35.00-80.00% | 24 months | with Fundera by NerdWallet | |
QuickBridge - Online term loan Read reviewwith Fundera by NerdWallet | Best for prepayment discounts | $500,000 | 600 | Undisclosed | 18 months | with Fundera by NerdWallet | |
Fundbox - Line of credit Read reviewwith Fundera by NerdWallet | Best for startups | $150,000 | 600 | 36.00-99.00% | 6 months | with Fundera by NerdWallet | |
American Express® Business Line of Credit* Read reviewwith Fundera by NerdWallet | Best for business lines of credit | $250,000 | 660 | Undisclosed | 24 months | with Fundera by NerdWallet | |
AltLINE - Invoice factoring Read reviewwith Fundera by NerdWallet | Best for business-to-business companies | $5,000,000 | 300 | Undisclosed | 3 months | with Fundera by NerdWallet |
A closer look at our picks for the best small business loans
Best for fast funding
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
Best for bad credit
Expansion Capital Group - Merchant cash advance
with Fundera by NerdWallet
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
Best for working capital needs
OnDeck - Online term loan
with Fundera by NerdWallet
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
Best for large loan amounts
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
Best for easy application process
Headway Capital - Line of credit
with Fundera by NerdWallet
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
with Fundera by NerdWallet
Best for prepayment discounts
QuickBridge - Online term loan
with Fundera by NerdWallet
Pros
- Funding in as little as 24 hours.
- Startups and borrowers with bad credit may qualify.
- Prepayment discounts available.
- No collateral required.
Cons
- Requires higher annual revenue than other online lenders.
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Charges an origination fee.
Pros
- Funding in as little as 24 hours.
- Startups and borrowers with bad credit may qualify.
- Prepayment discounts available.
- No collateral required.
Cons
- Requires higher annual revenue than other online lenders.
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Charges an origination fee.
with Fundera by NerdWallet
Best for startups
Fundbox - Line of credit
with Fundera by NerdWallet
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
Best for business lines of credit
American Express® Business Line of Credit*
with Fundera by NerdWallet
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
with Fundera by NerdWallet
Best for business-to-business companies
AltLINE - Invoice factoring
with Fundera by NerdWallet
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
A closer look at the best short-term business loans
Bluevine
Expansion Capital Group
OnDeck
Fora Financial
Headway Capital
QuickBridge
Fundbox
American Express® Business Line of Credit
AltLINE
What is a short-term business loan?
How do short-term business loans work?
Short-term business loan interest rates
Types of short-term business loans
Business term loan
Business line of credit
Invoice factoring
Merchant cash advance
Pros and cons of short-term business loans
Pros
Cons
When to consider a short-term business loan
- 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.
How to get a short-term business loan
1. Assess your financing needs
2. Evaluate your qualifications
3. Find and compare lenders
4. Submit your application
5. Close your loan
When to consider alternatives to short-term business loans
Situation | Financing alternative | |
---|---|---|
Your loan payment amount is too large | If the payment amount on your short-term loan is outside your budget, a business loan with a longer repayment period may offer a lower monthly payment. Long-term business loans can have terms up to 10 years, and even 25 years, in some cases. Depending on the rate, however, you may pay more in interest over the life of the loan. | |
Frequent payments will disrupt your cash flow | Short-term lenders often require daily or weekly payments. A business credit card, however, operates similar to a business line of credit and typically requires monthly payments. But carrying a balance instead of paying off the card in full each month can get expensive. | |
Taking on additional debt isn’t possible | If your business isn’t generating enough revenue to take on another debt payment, business grants may be an option. Business grants don’t require repayment, but competition for them is strong. | |
You can’t meet lender requirements | If you don’t meet lender requirements for a loan because you have a low credit score or haven’t been in business long, consider using crowdfunding to create a fundraising campaign for your business. It can be a low-cost way to raise capital and also an opportunity to build an enthusiastic client base — without taking on additional debt. |
Frequently asked questions
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.