Best Emergency Business Loans of 2024

The right emergency business loan largely depends on why you need funding. Online lenders can provide the fastest access to capital.

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Written by Randa Kriss
Lead Writer
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Fact Checked
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Co-written by Olivia Chen
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250+ small-business products reviewed and rated by our team of experts.

95+ years of combined experience covering small-business and personal finance.

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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.

7 best emergency business loans
ProductMax loan amountMin. credit scoreLearn more
Bluevine - Line of credit

Bluevine - Line of credit

NerdWallet Rating 
5.0
Apply now

with Fundera by NerdWallet

$250,000625
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with Fundera by NerdWallet

OnDeck - Online term loan

OnDeck - Online term loan

NerdWallet Rating 
4.7
Apply now

with Fundera by NerdWallet

$250,000625
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with Fundera by NerdWallet

Headway Capital - Line of credit

Headway Capital - Line of credit

NerdWallet Rating 
4.7
Apply now

with Fundera by NerdWallet

$100,000625
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with Fundera by NerdWallet

Fora Financial - Online term loan

Fora Financial - Online term loan

NerdWallet Rating 
4.5
Apply now

with Fundera by NerdWallet

$1,500,000570
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with Fundera by NerdWallet

AltLINE - Invoice Factoring

AltLINE - Invoice Factoring

NerdWallet Rating 
4.4
$10,000,000300
Rapid Finance - Merchant cash advance

Rapid Finance - Merchant cash advance

Apply now

with Fundera by NerdWallet

$500,000600
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with Fundera by NerdWallet

SBA Economic Injury Disaster Loan

SBA Economic Injury Disaster Loan

$2,000,000Undisclosed
More Nerdy Perspective
I worked in small-business lending for half a decade, and there were a few mistakes I saw business owners make when they were in a rush for funding:

A closer look at the best emergency business loans

Bluevine

Best for same-day funding
Bluevine - Line of credit
Bluevine - Line of credit
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with Fundera by NerdWallet

Min Credit
625

Max Loan Amount
$250,000

When you apply for a Bluevine line of credit, you may be able to receive a decision and get funded within hours.

  • Minimum credit score: 625.

  • Minimum time in business: 12 months.

  • Minimum annual revenue: $120000.

  • No bankruptcies in the past year.

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.

Requires personal guarantee.

Not available in North Dakota, South Dakota or Nevada.

Rates can be high compared to traditional lenders.

OnDeck

Best for short-term business loans
OnDeck - Online term loan
OnDeck - Online term loan
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with Fundera by NerdWallet

Min Credit
625

Max Loan Amount
$250,000

OnDeck states that its loan application process can be completed within 10 minutes, online or over the phone, and you may be able to receive your funding the same day.

  • Minimum credit score: 625.

  • Minimum time in business: 12 months.

  • Minimum annual revenue: $100000.

  • Business bank account.

Pros

Cash can be available within the same business day.

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 Nevada, North Dakota or South Dakota.

Requires frequent (daily or weekly) repayments.

Interest rates can be high compared with traditional lenders.

Requires business lien and personal guarantee.

Headway Capital

Best for startups
Headway Capital - Line of credit
Headway Capital - Line of credit
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with Fundera by NerdWallet

Min Credit
625

Max Loan Amount
$100,000

If your new business needs capital quickly, Headway Capital can offer funding as soon as the next business day. You can complete the fast online application process without impacting your credit score.

  • Minimum credit score: 625.

  • Minimum time in business: 6 months.

  • Minimum annual revenue: $50000.

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.

Fora Financial

Best for bad credit
Fora Financial - Online term loan
Fora Financial - Online term loan
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with Fundera by NerdWallet

Min Credit
570

Max Loan Amount
$1,500,000

Fora Financial offers short-term loans that can be approved and funded in 24 to 48 hours. You may be able to qualify with a minimum credit score of 570.

  • Minimum time in business: 6 months.

  • Minimum annual revenue: $240000 .

  • No open bankruptcies or dismissed bankruptcies within the past year.

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.

AltLINE

Best for invoice factoring
AltLINE - Invoice Factoring
AltLINE - Invoice Factoring
Min Credit
300

Max Loan Amount
$10,000,000

For business-to-business (B2B) companies that need capital quickly and have current outstanding invoices totaling an amount large enough to help fill your emergency funding need, AltLINE can typically provide funding within 48 hours — no collateral required.

  • All credit scores may be accepted (ranging from 300 to 850).

  • No minimum time in business requirement.

  • No minimum annual revenue requirement.

  • Must be a B2B business.

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.

Rapid Finance

Best for merchant cash advance
Rapid Finance - Merchant cash advance
Rapid Finance - Merchant cash advance
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with Fundera by NerdWallet

Min Credit
600

Max Loan Amount
$500,000

If a merchant cash advance is your best — or only — option, Rapid Finance stands out for its lack of additional fees. As with any MCA, though, proceed cautiously — these are the most expensive types of emergency business funding.

  • Minimum credit score: 600.

  • Minimum time in business: 3 years.

  • Minimum revenue requirement: $10,000 per month.

Pros

No prepayment penalties or other fees.

Can be approved with a credit score as low as 600.

Cons

Daily or weekly payments.

Lengthy time in business requirement.

SBA Economic Injury Disaster Loan

Best for SBA financing
SBA Economic Injury Disaster Loan
SBA Economic Injury Disaster Loan
Min Credit
0

Max Loan Amount
$2,000,000

SBA Economic Injury Disaster Loans provide emergency funds of up to $2 million for businesses in declared disaster areas that have suffered substantial economic injury.

  • Must be located in a declared disaster zone.

  • Must show that you’ve suffered economic injury as the result of a relevant disaster.

  • Must be a small business, small agricultural cooperative or private nonprofit organization.

  • Must be unable to obtain credit elsewhere.

Pros

Large loan amounts and long repayment terms.

Interest rates max out at 4%.

No prepayment penalties.

Cons

Collateral required for loans over $25,000.

Only available for businesses located in a declared disaster area.

Can be slow to fund.

What is an emergency business loan?

An emergency business loan is a short-term loan used to address unexpected expenses or gaps in cash flow that arise from emergencies or disasters.

Online lenders typically offer the fastest business loans for emergency situations; however, they can come with high interest rates and fees. The SBA also offers disaster loans for small businesses — and while interest rates are lower, businesses must have been impacted by a declared disaster to qualify.

Use cases for an emergency business loan

You might use an emergency business loan to:

  • Repair physical damage to your business location.

  • Restore or restock damaged inventory.

  • Replace broken or damaged equipment.

  • Cover essential expenses when you experience a seasonal slow down, change in operations or have to close your business during an emergency.

  • Cover loss of revenue or additional expenses associated with losing a key employee.

Types of emergency business loans

Here are some of the most common types of emergency small-business loans:

SBA disaster loans

The federal government offers emergency business loans through the U.S. Small Business Administration. The SBA disaster loan program includes four types of loans to accommodate different scenarios:

  • Home and personal property loans. Replace or repair your home or personal property after a disaster.

  • Business physical disaster loans. Replace or repair business property, such as machinery, equipment, fixtures or inventory, after a disaster.

  • Economic injury disaster loans. Help businesses meet financial obligations and operating expenses that they could typically meet if not for a disaster.

  • Military reservist injury loans. Help businesses meet operating expenses because an essential employee was called to active duty.

With the exception of the military reservist injury loan, you can only apply for an SBA disaster loan if your business is located in a declared disaster zone

U.S. Small Business Administration. Disaster assistance.
.

If you can qualify, these government emergency business loans offer low interest rates and long repayment terms. You can apply online through the SBA website, but keep in mind that the process may take several weeks

.

Business term loans

A business term loan is a lump sum of capital that you pay back on a fixed schedule, with interest, over a predetermined period. A term loan is a good option for emergency financing when you need to pay for a one-time, specific expense, such as replacing broken equipment or damaged pipes.

Business term loans are available from both traditional lenders (banks and credit unions) and online lenders. If you need an emergency business loan, however, online lenders generally have streamlined applications, more flexible qualification requirements and the ability to fund faster than traditional lenders. Some can fund applications within the same day — and most within a few business days. As a result, though, online emergency business loans will typically be short-term loans that have higher interest rates.

🤓Nerdy Tip

In some cases, paying a little more for faster access to the funds you need can be worth it. But be sure that you’re not taking on high-interest debt that will actually make it more difficult for your business to recover in the long run. Use our business loan calculator to estimate your emergency business loan rates and payments.

Business lines of credit

A business line of credit allows you to draw from a set limit of funds and only pay interest on the portion of money you borrow. Business lines of credit are one of the most flexible types of business financing — making them a good option for emergency working capital needs.

Like term loans, business lines of credit are available from both traditional and online lenders. Banks will typically have the lowest interest rates on credit lines, but online lenders can offer fast funding and flexible eligibility criteria.

Business lines of credit may have lower maximum funding amounts than term loans — but often have revolving terms. This means you can continue to draw on the line as long as you make your payments on time and don’t exceed your credit limit.

Invoice factoring

Invoice factoring can help business owners who need emergency funding by giving them access to capital tied up in unpaid invoices.

With invoice factoring, you sell your outstanding invoices to a factoring company at a discount. The company pays you a percentage of the invoice upfront and assumes responsibility for collecting the payment from your customer. Once your customer repays the factoring company, you receive the remaining invoice amount, minus the company’s fees.

Invoice factoring is generally available from online lenders or fintech companies. Because factoring companies prioritize the value of your invoices and your customers’ payment history, this emergency business loan can be easy to qualify for and fast to fund, but can be expensive — especially if your customers are late to repay their invoices.

Merchant cash advances

With a merchant cash advance (MCA), a company provides you with a lump sum of cash that you repay using a percentage of your daily or weekly debit and credit card sales, plus fees. Merchant cash advances are typically fast to fund — sometimes as quickly as 24 hours — and easy to qualify for. Many MCA providers can work with startups and businesses with bad credit and require minimal documentation during the application process.

❗ MCAs are also one of the most expensive types of business financing. These products can have annual percentage rates that reach as high as 350% — making it difficult for business owners to repay what they’ve borrowed.

Generally, you should consider all other loan options before a merchant cash advance — even if your business is dealing with an emergency.

How to compare emergency business loans

Consider these factors to determine which emergency loan is right for your business’s needs:

  • Loan type. The right type of loan will depend on the kind of emergency your business has experienced and why you need funding. If, for example, you need to cover daily expenses during a slow period, you might opt for a working capital line of credit. On the other hand, you might choose equipment financing to replace broken or damaged equipment.

  • Interest rates. Business loan rates can vary based on the lender, loan type and your qualifications. Because emergency business loans are often fast to fund, however, interest rates may be higher than other loan options. Compare rates from multiple providers to find the best offer — and make sure you can afford any debt you take on.

  • Funding speed. When your business experiences a disaster, you usually need capital quickly. Some online lenders can offer same-day business loans. As you explore different options, talk to lenders about their process and timeline, so you know when you can expect your funds.

  • Repayment terms. Emergency business loans often have short repayment terms. You’ll want to make sure that you can manage potential payments (especially if they’re daily or weekly) based on your existing budget. 

  • Lender reputation. Reading online reviews can give you a better sense of a lender’s reputation and what it’s like to work for them. Be wary of predatory lenders that may try to take advantage of you when you’re in need of quick funding. These lenders may promise “guaranteed approval” or similar terms that seem too good to be true.

How to get an emergency business loan

1. Evaluate your financing needs.

Start by thinking about how much financing you need, how much debt you can afford and consider what type of business loan would be best for your emergency situation.

It may also be helpful to draft a plan that details exactly how you plan to use your capital — that way, you know how these funds will help address your immediate needs and how your business can grow in the future.

2. Check your qualifications.

The best type of emergency business loan for your business will also depend on what you can qualify for. Specific business loan requirements vary by lender, but you can consider common underwriting criteria — time in business, annual revenue, personal credit score — to know where you stand before applying.

You might also think about your cash flow and available collateral. If you’re considering an SBA disaster loan, you should confirm that your business falls into a declared disaster area — and check that you meet any additional SBA loan qualifications.

3. Research and compare lenders.

As you research lenders, consider factors such as interest rates, repayment terms, loan amounts, funding speed, application process and lender reputation.

It can be helpful to read reviews of lenders online or talk to former customers to verify a lender’s reputation. Keep in mind that fast funding can often result in higher interest rates. You’ll want to make sure that you can afford any debt that you take on.

4. Complete and submit your application.

The application process varies based on the lender, but if you opt for an online lender, the process should be fairly straightforward. Along with a simple application, you’ll typically provide basic documentation, such as business and personal bank statements and tax returns, as well as business financial statements. The lender will likely require you to sign a personal guarantee as well.

Pros and cons of emergency business loans

Pros

Can typically be approved and funded quickly, depending on the nature of the situation.

Federally backed funding (available in declared disaster areas) offers competitive rates and terms.

Cons

Can have high interest rates and short repayment terms, which can make it difficult for businesses to keep up with payments.

Exploitative or predatory lenders may try to take advantage of businesses seeking emergency funding.

Emergency business loan alternatives

An emergency business loan may not be the right choice if your need for capital isn’t immediate — especially if you can qualify for more competitive rates and terms by waiting.

There may also be instances where taking on debt will actually harm your financial situation instead of helping, even through a disaster. In those cases, consider these alternative financing options:

  • Business credit cards. If you’re looking for a quick and revolving source of financing to cover cash flow gaps, business credit cards can be a good option. Many business credit cards require good credit — a score of 690 or higher — to qualify. They can provide benefits like flexibility and spending rewards, but business credit cards can also become expensive if you’re not diligent about making payments. 

  • Personal loans. It is possible to take out a personal loan instead of a business loan to access much-needed capital for your small business. Personal loans can be easier to qualify for, particularly if you don’t have enough time in business or revenue to qualify for a business loan, and personal loans may fund faster than some business loans. 

  • Friends and family loans. Friends and family loans can help you save money on interest, and may give you fast access to capital because there’s no underwriting process. It’s a good idea, however, to put some sort of agreement in writing to avoid personal disputes.

  • Self-funding. If you have a business emergency fund or other money in savings, this may be the time to use it. Just be sure you have a plan to build your savings back up so you’re not vulnerable in the event of future emergencies or opportunities.

  • Crowdfunding. This likely won’t be your fastest alternative option for accessing emergency business funding, but particularly if your small business is already well-established within a community of supportive customers, crowdfunding presents a valuable opportunity to access emergency funding. In addition to helping you access capital without the worry of meeting stringent loan requirements or completing lengthy applications, crowdfunding doubles as an avenue for marketing your business.

Frequently asked questions

Many banks can offer business loans to help cover unexpected expenses. Although bank loans typically have low interest rates and long repayment terms, they may not be your best option when you need fast cash during a crisis.

Bank loans usually have detailed applications and are slow to fund. Plus, bank lenders will require that you meet top criteria to qualify.

Some online lenders may be willing to issue emergency business loans to borrowers with bad credit. As a result, however, these lenders will typically charge higher interest rates and offer shorter repayment terms.

Although you may be able to qualify, you should think carefully about taking on a high interest rate loan that can be difficult to repay — especially if your business is already dealing with a crisis.

Karrin Sehmbi, a NerdWallet content management specialist, contributed to this article.

Methodology

🤓 Here's the nerdy science behind how we picked the best emergency business loans.

NerdWallet’s review process evaluates and rates small-business loans from reputable banks, online lenders and more. Because online lenders provide fast access to cash, we focused much of our selection on these options to help you find the best match.

We analyze over 800 data points across lenders using a combination of company websites, public documents, company representatives and by going through lenders’ initial application process ourselves.

NerdWallet writers and editors conduct a full fact check and update our top lists regularly to ensure accuracy and fairness.

Here’s how we evaluate each lender

Lenders that don’t charge origination fees or prepayment penalties rank higher in this category.

Lenders that make it easy for borrowers to understand loan rates, fees, terms, qualification requirements and more rank higher in this category.

Lenders that report timely payments to the commercial credit bureaus rank higher as that helps borrowers build business credit.

Lenders that have flexible underwriting and offer multiple payment terms rank higher in this category.

Lenders that offer fast funding and multiple ways to apply for a loan rank higher in this category.

Lenders that provide multiple ways to speak with a customer service representative and an online dashboard for loan management rank higher in this category.

A guide to our star ratings

Lenders that receive a NerdWallet rating of 5 stars are outstanding among their peers. They deliver excellent value and excel at each of our evaluation criteria.

Lenders that earn 4 or 4.5 stars are excellent. They provide loans that possess all the standard features you'd expect, but are lacking in one or two areas.

Lenders with a rating of 3 or 3.5 stars are a good choice, however, they may be lacking in a few areas.

Lenders that we rate below 3 stars are lacking in several key areas, and we won’t typically recommend them as a first choice to secure a loan.

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