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Best Short-Term Business Loans to Consider in 2022

Short-term business loans are there if you need capital quickly. Typically funded within 24 hours of loan approval, short-term loans can bridge any gaps you have in revenue or cover emergency expenses.

Best Short-term Business Loans
Susan Guillory
Written by:Susan Guillory
Professional Intuitive Business Coach and Content Writer

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

Fact Checked by: Dr. JeFreda R. Brown, DBA, CFEI and a highly respected financial expert


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Short-term business loans are typically given in one lump-sum, with fixed monthly payments and short repayment periods (average of one year). Getting a small business loan for short-term expenses can help cover payroll expenses, purchase equipment, invest in marketing, or cover any other business expenses you might have right now.

Online small business lenders offer short-term loans with quick applications and fast funding times. Our team of financial experts reviewed and ranked the best short-term business loans to help you get funded.

Best Short-Term Business Loan

Top Picks for Best Short-Term Business Loans

When it comes to choosing the best short-term loan for your business, you’ll want to ask yourself how much you need to borrow, look to see what you qualify for, and see what the lenders' various rates and fees are.

You’ll find many short-term business loan options out there. In this review, we’ve done the homework for you using our rating methodology. This methodology is designed to help you select the best option for your needs. 


Best Short-term Business Loans for 2022 - Full Overview

Kabbage - Best for Fair Credit Score Requirements


If your credit is fair and you need access to cash, Kabbage may be the solution. With fair credit score requirements, and borrowing amounts up to $250,000, Kabbage’s line of credit may be easier for some business owners to get approved for than other options.

Credit line replenishes as you repay it
Fair credit score requirements
No prepayment penalties
Complex fee structure
Rates may be high
Personal guarantee required

The application for a Kabbage line of credit 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, you must:

  • Meet the minimum credit score of 640
  • Have a valid business checking account
  • 12+ months in business
  • $3,000 per month in revenue

Account holders are charged a monthly fee based on creditworthiness and other criteria. You'll be charged a fee of 2-9% for a 6-month loan, 7.5-18% for a 12-month loan, or 15.75-27% for an 18-month loan.


The Bottom Line

For startups and small business owners who may not qualify for other options because of their credit, Kabbage may be worth looking into.

Try Kabbage

National Funding - Best For Working Capital Loans

National Funding’s short-term business loans come with repayment terms ranging from four months to two years. Depending on your finances and unique situation, you can get approved for up to $500,000 to cover the costs of payroll, rent, utilities, or other everyday expenses.

Fair credit accepted
Early repayment discount
Great reputation
No special interest loans
High annual revenue requirements
No mobile app

National Funding offers a quick, easy application process where you can get a decision and funding in as little as 24 hours of applying. You’ll also receive access to a Funding Specialist who can help answer any questions you may have about the loan. The factor rate starts at 1.10. To take out a working capital loan, you’ll need a minimum credit score of 600, a business track record of at least six months, and $250,000 or more in annual revenue.

The Bottom Line

As long as your business earns at least $250,000 in annual revenue, a working capital loan from National Funding may be worthwhile. You can prequalify online without any impact to your credit and won’t have to secure any collateral. Plus if you pay your loan in full within 100 days, you’ll score a 7% discount.

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. If approved, 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.

Fast application process
Instant decision on application
Money deposited as soon as next business day
No origination fee
No prepayment penalties
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
  • 6+ months in business


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

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 can help. Bluevine offers a short-term line of credit for businesses 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 1.5% interest. There are no fees or monthly minimum balances required.

Fast funding
Borrow what you need, then pay back
Reasonable interest rates
Not available in all states
May need a personal guarantee

Bluevine’s line of credit can get you as much as $250,000 that you can borrow from and repay again and again. Simple interest rates start at just 4.8%.

To qualify for a business line of credit with Bluevine, you need:

  • Credit score of 625+
  • $10,000 or more in monthly revenue
  • 6+ months in business


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, a line of credit from Bluevine may work best.

Try BlueVine

Uncapped - Best for No Credit Score Requirements

Uncapped Small Business Loans

If you need a quick injection of cash, you can get fast funding from Uncapped with a term as short as three months. Alternatively, you can repay Uncapped out of your monthly sales. It’s a great option for business owners seeking short-term financing without hidden fees. 

Terms as short as three months
No origination or application fees
No prepayment penalties
Fees as low as 2%
Loans up to $10 million
Not available in some states
Not available to sole proprietors
Online businesses only

You can borrow between $10,000 and $10 million from Uncapped with a finance fee ranging from 2% to 12% of the loan amount. There are no other fees or prepayment penalties. If you choose a fixed-term loan, you can select a term as short as three months or as long as 24 months. 

If you opt for revenue-based financing, you’ll agree to pay a percentage of your revenue between 5% and 25% until the principal and fee are paid. Your business will need to have an online model with six months of history and at least $10,000 in monthly revenue to qualify, but there are no minimum credit score requirements.

The Bottom Line

With low minimum borrowing amounts and short minimum terms, Uncapped is ideal for businesses that need a fast, short-term loan. Flexible repayment options and transparent fees make the lender ideal for a wide variety of online businesses.

Try Uncapped

Fora Financial - Best for High Value Loans

Fora Financial

Short-term loans aren’t known for having high limits, but that’s not the case with Fora Financial. Fora Financial allows 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.

No restrictions on loan use
High value loans
Early payoff discounts
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.

To qualify for a short-term loan from Fora Financial, you’ll need to have:

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

The Bottom Line

If you need a decent amount of money over a short period of time, Fora Financial stands out due to its high loan limits. Since your credit isn’t as much of a factor in determining your eligibility, Fora Financial may be an appealing option for many.

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.

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

OnDeck offers term loans of $5,000 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, and there are no prepayment fees.

To qualify for either, you will need:

  • 600+ FICO score
  • $100,000 in annual revenues
  • 1+ year in business
  • 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.

Try OnDeck

Funding Circle - Best for Peer-to-Peer Lending

Funding Circle

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, which are loans funded by private investors rather than commercial lenders. Funding Circle offers term loans, lines of credit, and SBA loans.

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.

More flexible qualification requirements
Lower interest rates
No prepayment penalty
Origination fees may be high
Some loans require collateral
Not available in Nevada

Funding Circle’s term loans range from $25,000 to $500,000, with repayment periods of six months to seven years. Lines of credit are available from $5,000 to $250,000, and there is an average draw fee of 1.6%.

To qualify for a loan from Funding Circle, you must have:

  • Credit score of 660+
  • Be in business for at least two years
  • No personal bankruptcies in the past seven years

The Bottom Line

If the idea of working with private investors rather than commercial lenders is appealing, peer-to-peer lending through Funding Circle may be a good fit. You’ll be assigned a dedicated account manager who can help ensure you get the type of financing you need.

How We Choose the Best Short-Term Business Loan

  • Loan features: Each lender has a cap on how much it will lend, with some offering significantly higher loan amounts than others.
  • 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 formulas for determining your interest rate, and many charge additional fees. The cost of borrowing can be expensive, so we took the time to look for lenders with the best rates.
  • 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 additional features such as payment flexibility, advertising transparency, and advanced technology.


Best Short-Term Business Loans - Main Features

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
Fundbox6006 months$100,000Up to $150,0004.66-18%
BlueVine6256 months$10,000 monthly revenueUp to $250,000Starts at 4.8%
Kabbage64012 months$3,000 monthly revenue$2,000 to $250,0006 months: 2-9%   
12 months: 7.5-18%   
18 months: 15.75-27%
OnDeck60012 months$100,000$5,000 to $250,000Starting at 30%
Fora Financialn/a6 months$12,000 (doesn’t specify monthly or annual)$5,000 to $750,00010-30%
Funding Circle6602 yearsn/a$5,000 to $500,000Starting at 9%
National Funding6006 months$250,000$5,000 to $500,000Factor rates starting at 1.1


What Is a Short-term Business Loan?

A short-term business loan offers borrowers a lump sum of cash that’s paid off in monthly installments, usually at a fixed rate of interest. Repayment terms can be anywhere from a few months all the way up to five years.

Short-term loans can be secured or unsecured, with secured loans requiring collateral. The main pro in backing your loan with collateral is you’ll typically receive a much lower interest rate.There are many different types of collateral, including cash, property, vehicles, inventory, stocks, bonds, and more.

Generally, these loans are used to pay for one-off investments or expenses, but can also be handy in emergency situations when you need funding quickly. Given their versatility, short-term loans are one of the most common types of lending you’ll find.


How Do Short-term Business Loans Work?

In general, short-term loans have similar characteristics to long-term ones. You borrow a set amount of money from a lender and have to repay it over an agreed period.

However, one of the main differences between the two is that payments usually have to be made on a more frequent basis. In most scenarios, lenders will ask for weekly payments. Moreover, this means the interest rate is usually based on a “factor” rather than an APR.

For example, some short-term business loans may use business days in a year to determine the repayment plan. So, for a 12-month loan, you’d have to make repayments based on 264 business days. Understanding these subtle differences is crucial when you’re searching for short-term loans online.


When to Consider Short-Term Business Loans

There are a few situations in which a short term business loan may be ideal:

  • You need access to capital quickly. Many short-term loan lenders give same-day decisions on applications and can fund your loan within 24 hours. This may be a great way to get access to cash fast
  • You don’t qualify for other types of financing. Short-term loans often have less strict requirements to qualify. As a result, you may be able to get financing with poor credit or minimal time in business.
  • You can pay back the loan quickly. Given the short nature of the repayment period, you’ll be limited in how much you pay in interest. Just be sure to calculate your monthly loan payment before signing the loan agreement to ensure you can afford it.


When to Avoid Short-Term Business Loans

Although short term loans can fill a need or two, there are certain situations when you might want to look for an alternative.

  • You can’t afford to pay a large amount over a short period. It may be tempting to take out as large a loan as possible. But with a short term loan, this means you'll have a hefty loan bill due each month. If you can’t afford to pay it with what you’re bringing in now, a short-term loan may not be ideal
  • The money won’t help you make more. Taking out a business loan can help you move your business forward. You can hire more staff members to increase productivity and serve more customers. If the short-term loan won’t do that, consider other types of financing.
  • The interest rate is astronomical. Interest rates on short-term loans can get crazy, especially if you have bad credit. Calculate the total you’ll pay in interest, including origination fees, and decide whether the cost of financing is worth it.


Business Term Loan Rates

There are a number of factors that will determine the rates you’ll get on a business term loan. While rates will vary by lender and by your specific qualifications, you can expect a range from 4.00% - 30.00%, on average. Determining factors are outlined below.

  • Credit score - The higher your credit score, the lower your rates tend to be. This won’t always be the case, but it’s the factor that is most commonly used by both traditional and alternative lenders.
  • Length of time in business - The longer you’ve been operating, the lower your rates will be.
  • Financial performance - From a lender’s perspective, the more money you’re earning, the lower the credit risk you present. If you can demonstrate a consistent level of profitability, then there’s an excellent chance you’ll be offered competitive rates.

Average small business loan interest rates for 2022 >>


How to Qualify for Business Term Loans

Specific qualification criteria, such as monthly income and credit score, will vary between each lender. It’s worth checking your credit score and getting your documents together well in advance of any application.

Lenders will commonly ask for:

  • Valid ID, such as a passport or driver’s license
  • Two years personal and business tax returns
  • Three months of business bank statements
  • Proof of ownership of your company
  • Evidence of asset ownership if you’re opting for a secured loan
  • Business lease, if applicable


How to Apply for a Business Term Loan

The process will depend on each lender, but you can follow these general business loan application guidelines below to get an idea of what to expect

  • Shop around – These days, most lenders will let you submit an application without facing a hard pull to your credit rating. We recommend submitting applications to a few different platforms. Assess each of them carefully before you accept a final offer.
  • Prepare your documentation - You should have all of your financial records ready before you officially submit your application. This will speed up the process and make things much easier for you.
  • Wait for approval - Most lenders will be able to either instantly reject your application or pre-approve you for a number of different offers. If you accept an offer at this stage, you’ll receive a hard pull against your credit rating. Full approval can happen in just a few hours, with funding taking place as soon as 24 hours from approval.


Final Thoughts

If you’re short on cash or want to take advantage of an opportunity and can’t wait for a bank loan application to process and fund, a short-term loan can provide the capital you need, fast.

Additionally, if you don’t have the credit scores required to qualify for traditional loans, short-term loans may open the door to the financing you seek.

Just keep in mind that with this convenience comes expense. Short-term loans often come with higher interest rates, so factor that cost into your decision to take on financing.

Susan Guillory

Written by: Susan Guillory

Professional Intuitive Business Coach and Content Writer

Susan Guillory is an intuitive business coach and content magic maker. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.

More about me
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me
Dr. JeFreda R. Brown

Fact checked by: Dr. JeFreda R. Brown

DBA, CFEI and a highly respected expert in personal and business finance

Dr. JeFreda R. Brown is more than a financial consultant: she’s an avid teacher and subject matter expert who helps people—individuals and groups in a business setting—master the skills they need to achieve lasting financial wellbeing. As Founder and CEO of Xaris Financial Enterprises, it is her passion and life goal to help others develop and maintain financial wellness.

More about me

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