When urgent financial needs arise, fast funding solutions can help keep operations running smoothly. Many lenders offer competitive rates, with APRs ranging from 10% to 99%, making them accessible for various credit profiles.
Speed is a major advantage—some providers approve and disburse funds in as little as 12-24 hours. This makes them ideal for unexpected expenses or growth opportunities. Lenders like Bluevine, OnDeck, and American Express Business Blueprint™ stand out for their quick processing and flexible terms.
Credit requirements vary, with some accepting scores as low as 500. Repayment terms also differ, typically spanning 3 to 24 months. However, availability may be limited in certain states, including North Dakota, South Dakota, and Nevada.
NerdWallet’s trusted ratings highlight lenders that excel in transparency, speed, and borrower-friendly features. Whether you need working capital or emergency funds, comparing options ensures the right fit for your situation.
Key Takeaways
- Fast funding options can provide capital in 12-24 hours.
- APRs range from 10% to 99%, depending on creditworthiness.
- Some lenders accept credit scores as low as 500.
- Repayment terms vary between 3 and 24 months.
- Certain providers have geographical restrictions.
What Are Short Term Business Loans?
Flexible financing options help businesses manage cash flow challenges. These solutions typically require repayment within 3 to 24 months, making them ideal for temporary needs. Common uses include covering payroll, emergency repairs, or seasonal inventory gaps.
“Daily or weekly repayments align with revenue cycles, reducing strain on budgets.”
Key Features
- Faster approval: Online lenders fund in 24 hours vs. banks’ 1–2 weeks.
- Higher APRs: Rates range from 10% to 99%, compared to traditional loans at 6.43–12.45%.
- Collateral alternatives: Personal guarantees or equipment liens may replace hard assets.
| Lender Type | Speed | APR Range | Repayment Frequency |
|---|---|---|---|
| Online | 12–24 hours | 10%–99% | Daily/Weekly |
| Traditional Bank | 1–2 weeks | 6.43%–12.45% | Monthly |
For B2B companies, invoice factoring converts unpaid invoices into immediate cash. However, merchant cash advances—while quick—carry high fees and can trap borrowers in cycles of debt.
Before applying, assess whether daily repayments suit your revenue stream. A small business with steady sales might prefer weekly terms, while seasonal ventures could opt for longer timelines.
Why Choose Short Term Business Loans?
Immediate access to funds helps businesses seize time-sensitive opportunities. Whether covering payroll gaps or stocking inventory, these solutions offer speed and adaptability.
Fast Access to Capital
Lenders like Bluevine and OnDeck approve applications in under 24 hours. A retail case study showed how 12-hour funding helped a store restock during a holiday surge.
Traditional bank loans take weeks. Online alternatives streamline paperwork, using algorithms to assess risk quickly.
Flexible Repayment Terms
Repayment schedules adapt to revenue cycles. Options include:
- Daily: 5% of sales (ideal for consistent income).
- Weekly: Fixed amounts (easier budgeting).
| Repayment Type | Best For | Example Lender |
|---|---|---|
| Daily | High-volume sales | Merchant Cash Advances |
| Weekly | Steady cash flow | Bluevine |
| Monthly | Seasonal businesses | National Funding |
Prepayment discounts reduce costs. National Funding offers 6–7% savings for early payoff.
“Revenue-based repayments align with earnings, preventing budget shocks.”
Caution: Frequent repayments can strain budgets. Analyze your cash flow before committing.
Best Short Term Business Loans for Your Needs
Industry-specific solutions help businesses tackle unique financial challenges. Whether you need working capital or specialized funding, comparing lenders ensures the right fit.
Lender Comparison by Credit Requirements
Your credit score plays a key role in approval. Below is a snapshot of minimum requirements:
| Lender | Minimum Credit Score |
|---|---|
| Idea Financial | 650 |
| Headway Capital | 625 |
| OnDeck | 625 |
| BHG | 700 |
| Funding Circle | 660 |
| Cadence Bank | 650 |
| BayFirst Financial | 650 |
| Ready Capital | 640 |
Freight factoring and B2B invoice financing cater to niche needs. For example, eCapital advances up to $30M for unpaid invoices, while Credibly offers merchant cash advances from $25K–$600K.
Understanding Costs
Blended APRs and factor rates vary widely. SBA loans provide fixed rates, whereas cash advances use factor rates (e.g., 1.2–1.5). Fora Financial funds up to $1.5M, ideal for large projects.
“Soft credit checks let you prequalify without impacting your score.”
Longer-term SBA 7(a) loans (up to $5M) suit expansions. Always verify lender terms, as some require 6+ months in operation.
Bluevine: Best for Fast Funding
Quick access to working capital can be a game-changer for growing companies. Bluevine stands out for its rapid approvals, offering funds in as little as 12–24 hours. Their business line credit and term loan options cater to diverse needs, from payroll gaps to inventory boosts.
Key Advantages and Drawbacks
Pros:
- Funds disbursed within one business day.
- Flexible weekly or monthly repayments via ACH.
- No prepayment penalties; early payoff saves costs.
Cons:
- Not available in North Dakota, South Dakota, or Nevada.
- Requires ChexSystems verification for bank accounts.
Who Qualifies?
Bluevine’s eligibility criteria include:
- 625+ personal FICO score.
- $120,000 minimum annual revenue.
- At least 12 months business history.
Corporations and LLCs are eligible, but industries like gambling or firearms are excluded. Approved applicants gain access to a complimentary Bluevine Business Checking account.
“Their streamlined process lets businesses focus on growth, not paperwork.”
Expansion Capital Group: Best for Bad Credit
Businesses with lower credit scores still have access to funding solutions. Expansion Capital Group specializes in serving applicants who may not qualify elsewhere. Their flexible options include asset-backed and unsecured financing, catering to diverse needs.
Advantages and Limitations
Pros:
- Accepts credit scores as low as 500.
- Funds available in 1–2 business days.
- Prepayment discounts reduce total costs.
Cons:
- May require collateral like business assets for larger amounts.
- Factor rates (1.3–1.8) lack transparency compared to APRs.
Who Can Apply?
Eligibility includes:
- $100,000+ annual revenue.
- 3+ months in operation.
- Valid tax ID and bank statements.
| Requirement | Details |
|---|---|
| Credit Score | 500+ |
| Revenue | $8,000/month minimum |
| Repayment Terms | 3–12 months |
| Documentation | Bank statements, tax returns, proof of ownership |
“Asset-backed financing can unlock higher amounts, but unsecured options suit businesses without collateral.”
Industries like restaurants and health services often qualify. However, high-risk sectors like gambling may face restrictions. Always review terms to avoid hidden fees.
OnDeck: Best for Working Capital Needs
Managing daily expenses while growing your company requires flexible funding solutions. OnDeck specializes in working capital loans, offering same-day approvals to keep operations running smoothly. Their structured repayment plans align with revenue cycles, making them ideal for businesses with steady cash flow.
Advantages and Limitations
Pros:
- Funds disbursed within 24 hours for urgent needs.
- Fixed monthly payments simplify budgeting.
- Credit bureau reporting helps build your credit score over time.
Cons:
- Daily repayments may strain seasonal businesses.
- Higher APRs compared to traditional bank options.
Eligibility and Terms
To qualify, applicants typically need:
- 625+ personal FICO score.
- $100,000+ annual revenue.
- Active business bank account for monitoring.
Repayment terms range from 12 to 24 months, with ACH transfers processed within 1–2 business days. OnDeck’s prepayment benefit reduces costs for early payoff.
“Their transparent fee structure and fast approvals make OnDeck a reliable partner for growth.”
Fora Financial: Best for Large Loan Amounts
Securing substantial funding can fuel expansion plans without lengthy approval delays. Fora Financial specializes in high-capital solutions, offering up to $1.5M for businesses aiming to scale operations or invest in major projects. Their streamlined process delivers funds within 24 hours, making them a top choice for urgent, large-scale needs.
Advantages and Limitations
Key benefits include:
- No collateral required, reducing risk for borrowers.
- Flexible 4–18-month terms to align with cash flow cycles.
- Prepayment discounts (up to 7%) for early repayment.
Potential drawbacks:
- Factor rates (1.3–1.8) lack APR transparency, complicating cost comparisons.
- Industry restrictions may apply for high-risk sectors like gambling.
Eligibility and Terms
Fora Financial’s requirements are accessible for moderate-credit applicants:
- 570+ personal credit score.
- $8,000+ monthly annual revenue.
- Active business bank account.
“Converting factor rates to APRs helps businesses gauge true borrowing costs—always request this breakdown.”
Unlike SBA 7(a) loans, Fora Financial’s term loans prioritize speed over ultra-low rates. Revenue advances suit businesses with fluctuating income, while fixed-term options provide predictable repayments. Industries like restaurants often qualify for higher amounts due to consistent revenue streams.
Headway Capital: Best for Easy Application Process
Streamlined funding applications save time for busy entrepreneurs. Headway Capital simplifies the process with an online platform that approves and disburses funds within 24 hours. Their focus on efficiency makes them ideal for businesses needing quick capital without lengthy paperwork.
Advantages and Drawbacks
Key benefits include:
- Online application completed in minutes—no in-person meetings.
- Funds deposited the next business day after approval.
- Flexible 12–24-month repayment terms.
Potential drawbacks:
- 2% draw fee per transaction (varies by state).
- *UCC filing* may be required if defaults occur.
Eligibility Requirements
Headway Capital evaluates applicants holistically, but core criteria include:
| Requirement | Details |
|---|---|
| Credit Score | 625+ |
| Annual Revenue | $50,000+ |
| Bank Statements | 3 recent months |
| Time in Business | 6+ months |
“Their digital process cuts approval times dramatically compared to traditional banks.”
Unlike traditional lenders, Headway Capital doesn’t require collateral. However, ensure your credit score meets the threshold before applying. Uploading documents upfront speeds up underwriting.
Fundbox: Best for Startups
Early-stage companies need financing that adapts to their unpredictable income cycles. Fundbox offers solutions tailored to ventures with limited operational history, requiring just 3 months in operation and $30,000 in annual revenue. Their focus on cash flow over rigid credit checks makes them stand out.
Advantages and Limitations
Key benefits:
- Funds disbursed within one business day for urgent needs.
- No prepayment penalties—clear savings for early repayments.
- Weekly repayment schedules align with monthly revenue fluctuations.
Considerations:
- Maximum 24-week terms may not suit long-term projects.
- Interest rates start at 4.66% for 12-week terms.
Eligibility Simplified
Fundbox evaluates startups holistically:
| Requirement | Details |
|---|---|
| Time in Business | 3+ months |
| Revenue Verification | $30K annually (via invoices/bank data) |
| Repayment Term | 12–24 weeks |
| Credit Check | Soft pull; focuses on business credit health |
“Integrating with accounting software streamlined our cash flow—no manual paperwork delays.”
Unlike traditional lenders, Fundbox uses transactional data (e.g., PayPal activity) to verify income. This helps newer businesses bypass strict time business requirements. However, compare rates to credit cards, which may offer longer grace periods.
American Express Business Blueprint™: Best for Business Lines of Credit
A dedicated line credit offers businesses predictable financial flexibility. American Express Business Blueprint™ provides revolving credit with transparent terms, ideal for managing cash flow gaps or unexpected expenses. Unlike traditional loans, this solution adapts to your spending needs while offering Amex-specific perks.
Advantages and Limitations
Key benefits include:
- Fast access: Funds appear in Amex Business Checking immediately or within 1–3 days for external accounts.
- Flexible fees: Rates range from 3% to 27%, decreasing over longer terms (e.g., 6–24 months).
- Credit-building: Regular reporting to bureaus helps strengthen your credit history.
Considerations:
- Higher initial fees compared to traditional LOCs (e.g., 9% for 12-month terms).
- External bank linking delays disbursement by 1–3 business days.
Eligibility and Terms
Approval requires:
- 660+ FICO score.
- $3,000+ average monthly revenue.
- Active business bank account (Amex Business Checking preferred).
“Linking our Amex account cut funding delays—we had capital the same day for inventory restocks.”
Pre-approved offers are available for existing Amex cardholders. Larger credit limits ($150K+) may require a prior relationship. For transparency, always convert factor rates to APRs when comparing costs.
AltLINE: Best for Business-to-Business Companies
B2B companies often face delayed payments, creating cash flow gaps that hinder growth. AltLINE specializes in business-to-business financing, offering invoice factoring to convert unpaid bills into working capital. Their solutions cater to industries like manufacturing and logistics, where 30–90-day payment terms are common.
Pros and Cons
Advantages:
- Fast funding: Receive up to 90% of invoice value within 24–48 hours.
- Non-notification factoring: Clients aren’t alerted, preserving relationships.
- Focuses on customer creditworthiness, not just your credit score.
Considerations:
- Late payment fees escalate costs (e.g., 1.5%–3% monthly).
- Doesn’t build business credit since repayments aren’t reported.
“Freight companies benefit from AltLINE’s industry-specific rates—factoring fuel invoices at 70% upfront with 2% fees.”
Eligibility Requirements
AltLINE’s flexible criteria include:
- No minimum credit score (300+ accepted).
- Invoices due within 90 days.
- Clients must pass credit checks (not your business).
Unlike traditional loans, AltLINE’s invoice factoring suits businesses with strong clients but uneven revenue. Compare it to supply chain financing, which leverages purchase orders instead of invoices.
Types of Short Term Business Loans
Understanding loan types ensures businesses pick the right fit. Whether covering payroll gaps or seizing growth opportunities, each option serves unique needs. Below are four common structures:
Business Term Loans
Fixed amounts ($5,000–$500,000) with set repayment timelines (3–24 months). Ideal for one-time expenses like equipment purchases.
- Collateral: Often required for larger amounts (e.g., equipment liens).
- Speed: Funding in 1–3 days with online lenders like Funding Circle.
Business Lines of Credit
Revolving funds up to $250,000, similar to a credit card. Bluevine offers lines credit with 2% draw fees.
- Renewal: Reuse funds after repayment without reapplying.
- Flexibility: Pay interest only on used amounts.
Invoice Factoring
Convert unpaid invoices into immediate cash (70–90% of value). Invoice factoring suits B2B companies with slow-paying clients.
“AltLINE advances 90% upfront, charging 1.5%–3% monthly fees on remaining balances.”
Merchant Cash Advances
A merchant cash advance provides lump sums in exchange for future sales (10–20% holdback). Beware of APRs up to 350%.
| Type | Collateral | Typical APR |
|---|---|---|
| Term Loan | Yes | 10%–99% |
| MCA | No | 150%–350% |
UCC-1 filings may secure loans, giving lenders asset claims if defaults occur.
Pros and Cons of Short Term Business Loans
Quick capital access comes with trade-offs that businesses must weigh carefully. While these solutions address urgent needs, understanding their full impact ensures sustainable financial health.
Advantages
Speed is the biggest benefit. Many lenders disburse funds in 24 hours, unlike traditional banks that take weeks. This helps cover payroll gaps or inventory shortages without delays.
Flexible repayment terms align with cash flow. Options like daily or weekly payments suit businesses with steady revenue. Some lenders even adjust schedules seasonally.
Disadvantages
High interest rates can escalate costs. APRs often exceed 30%, especially for lower credit scores. Frequent payments may strain budgets if revenue dips unexpectedly.
Refinancing risks exist. Rolling over debt into new loans can create cycles of borrowing. Always calculate total costs before committing.
“Daily repayments work for high-volume sales but can trap seasonal businesses in debt. Always model worst-case scenarios.”
Key Considerations
- Personal guarantees: Many lenders require these, putting personal assets at risk.
- State lien priority: UCC-1 filings may place lenders first in line for collateral claims.
- Interest capitalization: Unpaid interest can compound, increasing total debt.
| Feature | Short-Term Loans | Long-Term Loans |
|---|---|---|
| Funding Speed | 24 hours | 30+ days |
| APR Range | 10%–99% | 6%–12% |
| Repayment | Daily/Weekly | Monthly |
| Collateral | Often unsecured | Usually required |
For transparency, convert factor rates to APRs when comparing options. This avoids hidden fees and clarifies true costs.
When to Consider a Short Term Business Loan
Strategic financial decisions often determine a company’s ability to navigate unexpected hurdles. These loans provide flexibility for specific scenarios, from inventory restocks to emergency repairs. Evaluating your needs ensures optimal use of funds.
Working Capital Needs
Maintaining daily operations requires steady liquidity. Calculate working capital ratios to identify gaps. For example, a retail store might use a 6-month loan to stock holiday inventory.
- Opportunity cost: Compare loan fees against potential revenue loss.
- Projections: Use cash flow templates to forecast repayment capacity.
Unexpected Opportunities
Time-sensitive deals—like discounted bulk supplies—demand quick action. A case study showed an HVAC company securing funds in 48 hours to replace failed equipment before peak summer demand.
“Bridging gaps swiftly prevented $20K in lost contracts.”
Seasonal Cash Flow Gaps
Businesses with uneven revenue cycles benefit from tailored repayment terms. For instance, a landscaping firm might use a 4-month loan to cover payroll during winter.
| Scenario | Solution |
|---|---|
| Off-season payroll | 3-month term, weekly repayments |
| Marketing campaign | 6-month term, deferred payments |
Tax implications vary by loan type. Consult an accountant to optimize deductions.
How to Get a Short Term Business Loan
Navigating the funding process efficiently can secure the capital your company needs without delays. Follow these steps to streamline approvals and secure competitive terms.
Assess Your Financing Needs
Calculate how much capital you require and its purpose. Use the *debt service coverage* formula:
- Net Operating Income ÷ Total Debt = DSCR (Aim for ≥1.25).
For example, a $50,000 inventory purchase with $10,000 monthly income needs a 5-month repayment plan.
Evaluate Your Qualifications
Lenders review three key areas:
- Credit score: 625+ for most online lenders (e.g., OnDeck). Dispute errors on reports via AnnualCreditReport.com.
- Revenue: $100K+ annually or $8K/monthly (varies by lender).
- Documentation: Tax returns, bank statements, and proof of ownership.
Compare Lenders
Rate-shop within 14 days to avoid multiple credit score dings. Consider:
| Lender | Amount | Credit Minimum | Speed |
|---|---|---|---|
| Funding Circle | $25K–$750K | 660 | 3 days |
| Kapitus | $10K–$750K | 640 | 1 day |
| BlueVine | Up to $250K | 650 | Same day |
Submit Your Application
Complete these steps for a smooth application:
- Gather documents (e.g., IRS Form 4506-C).
- E-sign agreements digitally for faster processing.
- Negotiate closing costs—some lenders waive fees for early repayment.
“Soft credit checks let you prequalify without impacting your score—always ask lenders about their process.”
Alternatives to Short Term Business Loans
When immediate capital isn’t the priority, exploring other financing options can provide better long-term value. These alternatives often feature lower costs, flexible terms, or unique benefits tailored to specific needs.
Long-Term Business Loans
SBA-backed loans offer extended repayment periods—up to 7 years for working capital needs. Unlike short-term solutions, these feature:
- Fixed APRs between 6-12%, significantly lower than merchant cash advances
- Monthly payments that simplify budgeting
- Credit-building through regular bureau reporting
“SBA 7(a) loans provide stability for expansions, with 85% government guarantees reducing lender risk.”
Business Credit Cards
Revolving credit lines offer quick access with built-in rewards. Key considerations:
| Feature | Benefit | Consideration |
|---|---|---|
| 0% Intro APR | 12-18 months interest-free | Standard rates up to 27% after |
| Cash Back | 1-5% on purchases | Annual fees up to $695 |
Cards like American Express Blueprint™ track spending patterns to suggest optimal payment timelines.
Crowdfunding
Platforms like Kickstarter convert community support into capital. Success depends on:
- Equity regulations: SEC rules limit non-accredited investor participation
- Reward tiers that balance appeal with deliverability
- Video pitches that increase conversion by 85%
Grant matching services like GrantWatch can supplement these efforts for eligible businesses.
Conclusion
Choosing the right financial solution requires balancing speed, cost, and flexibility. Top lenders like Bluevine, OnDeck, and Fora Financial excel in fast approvals, but always scrutinize terms for hidden fees.
Avoid predatory practices by converting factor rates to APRs. Hybrid approaches—mixing a line of credit with a term loan—can optimize cash flow. Repaying on time strengthens your credit profile, unlocking better rates long-term.
NerdWallet prioritizes lenders with transparent pricing and borrower-friendly features. Whether addressing gaps or seizing opportunities, informed decisions ensure sustainable growth.
