Cash Flow Loans: What They Are and Best Options
Cash flow loans can be fast and easy to qualify for, but they tend to have higher interest rates than other business loans.
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| 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 | borrowers with bad credit | $1,500,000 | 6 months | Undisclosed | 4 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | small funding needs | $10,000 | 3 months | Undisclosed | Up to 6 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | startups | $250,000 | 3 months | 36% | 3 months to 2 years and 2 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | lines of credit | $200,000 | 12 months | 14% | 6 to 12 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | short-term loans | $400,000 | 12 months | 35% | 18 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | long-term loans | $500,000 | 12 months | 17.63% | 12 months to 5 years | with Fundera by NerdWallet |
best cash flow loans: More details
Fora Financial: Best for borrowers with 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 570.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 24 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 24 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 24 months.
- Charges an origination fee.
with Fundera by NerdWallet
Giggle Finance: Best for small funding needs
Giggle’s merchant cash advance (MCA) offers small-business owners quick access to funding up to $10,000. Its lenient qualification requirements make it a good option for startups and bad-credit borrowers.
Giggle Finance - Merchant cash advance
with Fundera by NerdWallet
Max loan amount
$10,000
Min. credit score
300
Term length
Up to 6 months
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
with Fundera by NerdWallet
Fundbox: Best for startups
Fundbox offers lines of credit up to $250,000. You may be able to qualify with just three months in business.
May fund quickly
Fundbox - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
600
Term length
3 months to 2 years and 2 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
- Weekly repayments required.
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
- Weekly repayments required.
with Fundera by NerdWallet
Bluevine: Best for lines of credit
Bluevine’s revolving line of credit is available up to $250,000 with repayment terms of 26 or 52 weeks. You can receive approval and get funding in as fast as 12 hours.
May fund quickly
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan amount
$200,000
Min. credit score
625
Term length
6 to 12 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.
with Fundera by NerdWallet
OnDeck: Best for short-term loans
OnDeck’s term loan is available in amounts up to $400,000 with repayment terms up to 24 months. Same-day funding may be available for loans up to $200,000.
May fund quickly
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan amount
$400,000
Min. credit score
625
Term length
18 to 24 months
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
Quantum Lending Solutions: Best for long-term loans
Quantum’s term loan offers a repayment period of up to five years, the longest among the lenders on this list. Borrowers can receive loans of up to $500,000, with semimonthly payment requirements.
Quantum Lending Solutions - Term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
680
Term length
12 months to 5 years
Pros
- Can be used to build business credit.
- Long repayment terms available.
- No prepayment penalty.
Cons
- Charges an origination fee.
- Not available in all 50 U.S. states.
- Not available in Hawaii, Massachusetts, Michigan, North Dakota, New Jersey, Nevada, New York, Ohio, Pennsylvania or Tennessee.
Pros
- Can be used to build business credit.
- Long repayment terms available.
- No prepayment penalty.
Cons
- Charges an origination fee.
- Not available in all 50 U.S. states.
- Not available in Hawaii, Massachusetts, Michigan, North Dakota, New Jersey, Nevada, New York, Ohio, Pennsylvania or Tennessee.
with Fundera by NerdWallet
What is a cash flow loan?
A cash flow loan is a type of small-business loan designed to help cover short-term needs. It’s often an unsecured loan that’s approved based on the projected revenue of your business.
More broadly, any small-business loan used to manage cash flow could be considered a “cash flow loan.” These loans are used to help businesses stay operational during gaps between income and expenses.
Cash flow loans can be used for a variety of purposes, such as:
- Buying inventory.
- Hiring staff.
- Making payroll.
- Covering day-to-day expenses (e.g., rent, insurance).
- Managing seasonal slowdowns or cash flow gaps.
How does a cash flow loan work?
Cash flow loans can be structured in different ways. Some function like standard term loans or lines of credit, with fixed repayments over a set repayment period. Others are structured as merchant cash advances (MCAs), where you receive a lump sum upfront and repay it using a percentage of your debit and credit card sales, plus a fee.
Cash flow loans are usually issued by online and alternative lenders rather than traditional banks. When evaluating your application, these lenders tend to prioritize your business revenue and cash flow, instead of your credit history or collateral. Although lenders may still review your credit and time in business, these factors typically play a smaller role in the approval decision.
Because of their unique underwriting process and lack of collateral, these loans tend to have shorter terms and higher interest rates than bank or SBA loans.
Types of cash flow loans
Term loans
Best for: Specific business purchases.
Term loans are the most common type of small-business loan, and online lenders may offer term loans based on future cash flow instead of more traditional loan requirements. Term loans — even those from online lenders — may have lower rates and fees than other types of alternative financing like invoice financing or MCAs.
Business lines of credit
Best for: Working capital, emergency expenses.
Lines of credit are revolving business loans, where you can borrow up to a certain amount and only pay interest on the amount borrowed. Once you repay the original amount, you can borrow more money, up to your limit. Business lines of credit work well for companies that have frequent gaps in cash flow due to customer payments or seasonality.
Invoice financing
Best for: Business-to-business (B2B) companies.
Invoice financing is a type of business loan that functions similar to a cash advance — where you use unpaid customer invoices as collateral for a lump sum from a third-party invoice financing company. These cash flow loans work best for B2B businesses, especially those that operate seasonally.
Merchant cash advances
Best for: Businesses with strong credit card sales; last-resort option.
A merchant cash advance is not technically a business loan. Instead, an MCA company gives you an upfront sum of cash that you repay using a percentage of your debit and credit card sales, plus a fee. MCAs are one of the most expensive forms of business financing, and are generally best as a last resort.
Cash flow loan vs. traditional small-business loan
Compare the differences between a cash flow loan and a traditional business loan using the table below:
| 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 Uniform Commercial Code (UCC) lien. | May also require physical collateral like cash deposits, vehicles or property. |
| Terms | Typically short term loans – between one and two years. | Between two to 10 years, or up to 25 years for certain SBA loans or commercial real estate loans. |
| Interest rates | Ranges from 20% to 99%. | Depending on lender and collateral, ranges from 4% to 99%. |
Pros and cons of cash flow loans
Pros
- Can fund quickly — often within a few business days.
- Offer streamlined applications with minimal documentation.
- Have flexible requirements; startups and borrowers with bad credit may qualify.
- Don’t require physical collateral.
Cons
- Can be expensive, with APRs reaching 99% or higher.
- Often require daily or weekly payments.
- May require a personal guarantee and/or a UCC lien.
How to get a cash flow loan
Follow these basic steps to get a cash flow loan:
1. Understand your financing needs
Determine what you’re going to use your loan for, how much capital you need and how quickly you need it. Also, think about which type of cash flow loan is the best fit for your needs.
For example, if you think a revolving source of funding would be beneficial, maybe a business line of credit is the best option.
2. Evaluate your business credentials
Look closely at your historical revenue, projected revenue, cash flow and other financial data. Although cash flow lenders may place less emphasis on your credit score, reviewing your credit history can still help you understand which loans you may qualify for — and what loan amounts and interest rates you’re likely to receive.
3. Research and compare lenders
Explore several online lenders to find the right option for your business. When comparing different options, consider factors such as interest rates, repayment terms, funding speed, application process, customer service and lender reputation.
4. Submit your application
Cash flow lenders typically offer simple, online applications that can be completed in a matter of minutes. You shouldn’t need extensive documentation, but you may be asked to provide:
- Personal and business tax returns.
- Personal and business bank statements.
- Business financial statements (e.g., profit and loss statement or a balance sheet).
You’ll also likely be required to sign a personal guarantee.
5. Review your loan agreement
Thoroughly review your loan agreement before signing and make sure the interest rates and repayment terms are laid out clearly. Instead of using an APR, some cash flow lenders may give simple interest rates or factor rates, so you’ll want to try and calculate these rates into an APR to get a better understanding of how much your loan costs.
If you have any questions or concerns about your business loan agreement, reach out to your lender for clarification. If a lender won’t provide rates and terms upfront or seems hesitant to provide straightforward answers to your questions, these could be red flags of a predatory company. In this case, you should consider looking for a loan elsewhere.
» Want to dive deeper? Read NerdWallet’s article on how to apply for a small-business loan.
Frequently asked questions
Cash flow loans are typically considered unsecured because you don’t need to provide physical collateral, like equipment or real estate, to get approved. Most cash flow lenders, however, will require you to sign a personal guarantee and/or take out a lien on your business assets.
Interest rates on cash flow loans range anywhere from 20% to 99%. APRs on merchant cash advances can even reach triple digits. Ultimately, the interest rate you receive will vary based on the lender and business’s qualifications.
Some of the most common types of cash flow loans include business lines of credit, short-term loans, invoice financing and merchant cash advances.
Last updated on January 5, 2026
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Frequently Asked Questions
Interest rates on cash flow loans range anywhere from 20% to 99%. APRs on merchant cash advances can even reach triple digits. The interest rate you receive, however, will vary based on your lender and business’s qualifications.
Some of the most common types of cash flow loans include business lines of credit, short-term loans, invoice financing and merchant cash advances.
Cash flow loans are typically considered unsecured because you don’t need to provide physical collateral, like equipment or real estate, to get approved. Most cash flow lenders, however, will require you to sign a personal guarantee and/or take out a lien on your business assets.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and 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:<br>- Transparency of rates and terms.<br>- Flexible payment options.<br>- Fast funding times.<br>- Accessible customer service.<br>- Reporting of payments to business credit bureaus.<br>- 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.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
