Finimpact

Best Short-term Business Loans

If you need money fast, you might not have weeks to wait for a loan application with a bank to be approved. Or you might not qualify for one. If that’s the case, a short term business loan might be exactly what you need.

Best Short-term Business Loans
Susan Guillory
Written by:Susan Guillory
Intuitive Business Coach and Content Magic Maker

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.

Our Top Picks for Best Short Term Business Loan

Fundbox review
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K - $150K
repayment
Loan Repayment 6-12 months
bluevine
  • Quick and simple application
  • Competitive interest rates
  • Available to customers with relatively low credit scores
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K-$250K
loan repayment
Loan Repayment 6-12 months
kabbage
  • No minimum credit score requirements
  • Easy application process
  • Funding in 48 hours
Min. Credit Score
Min. Credit Score No minimum required
Loan Amount
Loan Amount $1K-$150K
Loan Repayment
Loan Repayment Up to 18 months

How to Choose the Best Short Term Business Loan?

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.

  • Loan Features: Each lender has a cap on how much it will lend.
  • Application process: Some lenders do a hard pull on your credit when you apply, while others do a soft pull. Some applications are lengthy, while others short.
  • Interest rates and fees: Every lender has different secret formula for determining your interest rate, and many charge other fees. Know that many short term loans have higher interest.
  • Qualification process: Before applying, see what criteria you need to qualify for a short term loan. Credit scores, time in business, and annual revenues may factor in.
  • Customer support: You want a lender who is easy to reach on a variety of platforms, including phone, email, and chat.
  • Online user reviews: It’s smart to read reviews on independent review sites like Trustpilot to see what people say about a lender.
  • Perks and Bonuses: Lenders should work to get your business. Many offer features like payment flexibility, advertising transparency, and advanced technology.
  • Best Short-term Business Loans for 2022 - Full Overview

    1. Fundbox - Best for Fast Application and Funding

    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.

    Pros
    Fast application process
    Instant decision on application
    Money deposited as soon as next business day
    Cons
    Weekly repayment plan
    High interest rates

    With both Fundbox’s term loans and lines of credit, you can borrow up to $150,000. The term loan is repaid over 24 or 52 weeks, while the line of credit must be repaid over 12 or 24 weeks.

    Interest can range from 4.66% up to 18%, and varies for each customer and over time. To qualify for a loan with Fundbox, you will need:

    • Credit score of 600+
    • $100,000 or more in annual revenue
    • In business for 6 months or longer

    The Bottom Line

    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.

    Try Fundbox

    2.BlueVine - Best for Line of Credit

    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.

    Pros
    Fast funding
    Borrow what you need, then pay back
    Reasonable interest rates
    Cons
    Weekly repayment plan option
    High interest rates for low credit scores

    BlueVine’s line of credit can get you as much as $250,000 that you can borrow from and repay again and again. Interest rates are charged weekly rather than annually for the shorter repayment period, and monthly for the 1-year option:
    • 0.30%-1.50% per week (for six month repayment
    • 1.50%-6.50% per month (for 12 month repayment)
    To qualify for a business line of credit with BlueVine, you need:

    • Credit score of 600+
    • In business for 6 months or longer
    • $10,000 or more in monthly revenue

    The Bottom Line

    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.

    Try BlueVine

    3. Kabbage - Best for Low (or No) Credit Score Requirements

    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.

    Pros
    Credit line replenishes as you repay it
    No credit score requirements
    Business checking and payment processing
    Cons
    Interest is a monthly fee
    Rates may be high
    Must be Kabbage or American Express customer

    If you’re already a customer of American Express or Kabbage, you may qualify for a credit line up to $150,000. The application is short and easy, and funds are deposited into your account within a few days.

    To qualify for a business line of credit with Kabbage, the only requirements are that you have a valid business checking account and have been in business for at least 12 months. Its FAQs say you must also “satisfy other eligibility requirements and meet our creditworthiness criteria.”

    Account holders are charged a monthly fee based on the amount they owe, and that fee will range from 1 to 3%.

    The Bottom Line

    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.

    Try Kabbage

    4. OnDeck - Best for Discounts for Repeat Business

    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.

    Pros
    Fast funding
    Rewards for being a loyal customer
    Personalized loan offers
    Cons
    High interest rates
    Payments must be daily or weekly

    OnDeck offers term loans of $5,000 up to $250,000, with repayment terms up to 24 months. Its revolving lines of credit of $6,000 to $100,000 have repayment terms of 12 months, and this resets after each withdrawal. Payments are automated either weekly or daily. There are no prepayment fees.

    To qualify for either, you will need a 600 FICO score, $100,000 in annual revenues, time in business of a year or more, and a business checking account.

    The Bottom Line

    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.

    Try OnDeck

    5. Fora Financial - Best for High Value Loans

    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.

    Pros
    No restrictions on loan use
    High value loans
    Bad credit not an issue
    Cons
    High interest rates
    Origination fee charged

    You can borrow anywhere from $5,000 to $750,000 with Fora Financial, with terms up to 15 months. If you pay off your loan early, you may receive a discount. These loans don’t require collateral, which can be uncommon.

    To qualify, you’ll need to have:

    • 6+ months in business
    • $12,000+ in gross sales
    • No bankruptcies on your credit report

    The Bottom Line

    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.

    6. Credibly - Best for Great Customer Service

    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.

    Pros
    Bad credit not an issue
    Fast funding
    Excellent customer service
    Cons
    Fees on top of the factor rate charged
    Payments may be daily or weekly

    Credibly offers a wide range of financial products, including:

    • Short term loans
    • Long term loans
    • Lines of credit
    • Equipment loans
    • SBA loans
    • Merchant cash advances
    • Invoice factoring

    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.

    The Bottom Line

    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.

    Try Credibly

    7. Funding Circle - Best for Peer-to-Peer Lending

    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.

    Pros
    More flexible qualification requirements
    Lower interest rates
    No prepayment penalty
    Cons
    Origination fees may be high
    Some loans require collateral