Getting a short term loan can help you cover a gap in cash flow or help you buy equipment you need to run your business. You can also use a short term loan to pay employees, invest in marketing, or cover any other business expenses you might have right now.
Where can you find the best short term loans? Our team of financial experts reviewed and ranked the top online lenders to help you get funded.
When it comes to choosing the best short term loan for your business, there’s no single answer. You’ll need to decide what your business needs as well as what you qualify for. And of course, you want the loan with the best terms and lowest rates possible! Is all this too much to ask for?
With so many options out there for short term business loans, it can be daunting to choose one. That’s why we’ve done the homework for you, using the following factors to rank lenders.
Most of the time, you want a short term business loan because you want the money fast and don’t want the hassle that a lengthy bank loan may require. Fundbox not only has a short and sweet loan application, but you can also get a credit decision in minutes. And funds can be deposited as soon as the next business day. Fundbox offers both short term loans and lines of credit, as well as cash flow software to help you make financial decisions.
If you’re looking for a fast-funded short term loan, Fundbox can help you. With repayment plans of no more than a year, you can get the cash you need and repay it in a flash.
Read more in the full Fundbox review.
If you’d prefer to have access to a line of credit rather than getting all your money at once, like with a loan. BlueVine offers a short term line of credit for businesses of up to $250,000. Borrow what you need and pay for what you use, and your credit line will replenish with your payments. Once you request funds, they’ll be in your account within hours, ready for you to use. BlueVine also offers business checking with 1.2% interest. There are no fees for it, nor monthly minimum balances required.
If you’re looking for short-term financing and like the idea of having access to cash when you need it rather than all at once, like with a short-term business loan, BlueVine can get you access to what you need.
What can you do if you have bad credit and don’t qualify for other short term loans? Kabbage may be the solution. With no credit score requirements, Kabbage’s line of credit may be easier for some business owners to get approved for than other options. In addition to a line of credit of between $1,000 and $150,000, Kabbage (backed by American Express) also offers a business checking account that offers 1.1% interest on balances up to $100,000. Kabbage also offers a payment processing service.
For business owners who already have a relationship with American Express or Kabbage, and who don’t qualify for other options because of their credit, Kabbage may be an option you can easily get approved for.
You may need more than one short term loan over time, and that’s why you should consider OnDeck: customers who take out a second loan get the interest on the remaining balance of the first waived. You may also get a reduced origination fee on the next loan or none at all. OnDeck offers both term loans and lines of credit, and is known for a quick application and decision on your application. You can also get same-day funding on your loan or line of credit.
If you foresee taking out more than one short term loan or line of credit, you may be able to save money with OnDeck, since your interest on the first loan will be waived, and you may get a discount on the origination rate for another loan.
Short term loans aren’t known for having high limits, but that’s not the case with Fora Financial, which will allow borrowers to get up to $750,000 in as little as 72 hours after being approved. Fora offers both term loans and merchant cash advances, and approval isn’t solely based on your credit profile. There are no restrictions on loan use, and businesses in many industries can qualify, including businesses in construction, retail, restaurant, medical, services, manufacturing, transportation, and more.
If you need a lot of money over a short period of time, Fora Financial stands out because of its high loan limits. Also the fact that your credit isn’t as much of a factor in determining your eligibility for a loan may make this an appealing option for those with poor credit.
Read the full Fora Financial review for more details.
Though there are many options for short term business loans, not all of them offer stellar customer service. Credibly, though, is known for its attention on customers and fast application processing.
And if your credit isn’t great and you can’t qualify for other short term loans, not to worry. Credibly looks at other factors besides your credit scores to determine eligibility.
With such a wide variety of options when it comes to business financing, you’re sure to find what you’re looking for with Credibly. And qualifying is fairly easy: you need only a credit score of 500 or more, six or more months in business, and annual revenues of $50,000 or more. You can borrow up to $400,000 with Credibly’s working capital loans, invoice factoring, and merchant cash advances. Lines of credit are available up to $250,000.
Though short term loans are, by their nature, short, you still want to work with a lender that treats you with respect and care. Credibly has top reviews on Trustpilot, and customers rave about the fast service.
This option is a bit different from the other short term loans we’ve looked at so far. Funding Circle offers peer-to-peer lending. That is, loans funded by private investors rather than commercial lenders. Funding Circle offers term loans, lines of credit, and SBA loans. The benefits with Funding Circle are many. Requirements to qualify for funding are more lax than with many other lenders, and rates are surprisingly low, though they vary. There are fewer restrictions on how you can use the funds, too.
