Best Short-Term Business Loans of September 2024

Randa Kriss is a small-business writer who joined NerdWallet in 2020. She previously worked as a writer at Fundera, covering a wide variety of small-business topics including banking and loan products. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona College.

Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.

Short-term business loans are used to cover immediate financing needs. Online lenders typically provide these loans.

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Short-term business loans provide funds for working capital, emergency expenses, interruptions in cash flow and other immediate financing needs. These small-business loans typically have repayment terms of 12 months or less, although some may have terms that extend up to 24 months.

Below, you’ll find our full list of the best short-term business loans, plus information on how to choose the right option for your needs.

Why trust NerdWallet

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.

How much do you need?

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 8 of the best short-term business loans

Bluevine - Line of credit

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Best for Fast funding

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Fundbox - Line of credit

Best for Startups

OnDeck - Online term loan

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Best for Working capital needs

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Headway Capital - Line of credit

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Best for Easy application process

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American Express® Business Line of Credit

Best for Business lines of credit

Fora Financial - Online term loan

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Best for Large loan amounts

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AltLINE - Invoice Factoring

Best for Invoice factoring

Expansion Capital Group Merchant Cash Advance

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Best for Bad credit

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Here are 8 of the best short-term business loans

Best for Fast funding

Min. Credit Score

Best for Startups

Min. Credit Score

Best for Working capital needs

Min. Credit Score

Best for Easy application process

Min. Credit Score

Best for Business lines of credit

Min. Credit Score

Best for Large loan amounts

Min. Credit Score

Best for Invoice factoring

Min. Credit Score

Best for Bad credit

Min. Credit Score

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Bluevine offers short-term financing with terms of 26 weeks. Funds can be available within hours of approval.

Bluevine - Line of credit

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• Cash can be available within 12 to 24 hours.
• Can be used to build business credit.
• Low minimum credit score requirement.

• Requires weekly payments.
• Requires personal guarantee.
• Not available in North Dakota, South Dakota or Nevada.
• Rates can be high compared to traditional lenders.

• Minimum credit score: 625.
• Minimum time in business: 12 months.
• Minimum annual revenue: $120,000.
• No bankruptcies in the past year.

Min. Credit score

• Cash can be available within 12 to 24 hours.
• Can be used to build business credit.
• Low minimum credit score requirement.

• Requires weekly payments.
• Requires personal guarantee.
• Not available in North Dakota, South Dakota or Nevada.
• Rates can be high compared to traditional lenders.

• Minimum credit score: 625.
• Minimum time in business: 12 months.
• Minimum annual revenue: $120,000.
• No bankruptcies in the past year.

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Fundbox offers short-term funding for startups with six or more months in business. Repayment terms are 12 or 24 weeks.

Fundbox - Line of credit

Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.

• Financing available within one business day after approval.
• Simple application with minimal documentation required.
• Startup-friendly — accepts borrowers with a minimum of six months in business.
• Low minimum credit score requirement.
• No prepayment penalties, account maintenance fees or inactivity fees.

• Rates are high compared with traditional banks.
• May require personal guarantee.
• Weekly repayments required over a short term (maximum of 24 weeks).

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

Min. Credit score

Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.

• Financing available within one business day after approval.
• Simple application with minimal documentation required.
• Startup-friendly — accepts borrowers with a minimum of six months in business.
• Low minimum credit score requirement.
• No prepayment penalties, account maintenance fees or inactivity fees.

• Rates are high compared with traditional banks.
• May require personal guarantee.
• Weekly repayments required over a short term (maximum of 24 weeks).

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

Working capital needs

OnDeck’s short-term business loan offers fast access to working capital with repayment terms up to 24 months.

OnDeck - Online term loan

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OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

• 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.

• 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.

• Minimum credit score: 625.
• Minimum time in business: One year.
• Minimum annual revenue: $100,000.
• Business bank account.

Min. Credit score

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

• 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.

• 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.

• Minimum credit score: 625.
• Minimum time in business: One year.
• Minimum annual revenue: $100,000.
• Business bank account.

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Easy application process

You can get a short-term line of credit from Headway Capital with repayment terms up to 24 months. The lender offers a streamlined application and flexible qualification requirements.

Headway Capital - Line of credit

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Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.

• Flexible qualification requirements.
• No prepayment penalties.
• Funds available by next business day after approval.

• Most borrowers are subject to a 2% draw fee.
• Not available in all U.S. states.

• Minimum credit score: 625.
• Minimum time in business: Six months.
• Minimum annual revenue: $50,000.

Min. Credit score

Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.

• Flexible qualification requirements.
• No prepayment penalties.
• Funds available by next business day after approval.

• Most borrowers are subject to a 2% draw fee.
• Not available in all U.S. states.

• Minimum credit score: 625.
• Minimum time in business: Six months.
• Minimum annual revenue: $50,000.

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Business lines of credit

American Express offers short-term lines of credit from $2,000 to $250,000. Repayment terms of six-, 12-, 18- or 24 months are available.

American Express® Business Line of Credit

The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

• Streamlined application process with minimal paperwork.
• Financing from $2,000 to $250,000 available.
• Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
• Monthly repayment schedule (as opposed to daily or weekly).
• No prepayment penalties, account maintenance fees or draw fees.

• Must have online checking or PayPal account to verify cash flow.
• Personal guarantee required.
• Complex monthly fee structure makes it difficult to compare costs to other lenders.

• Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
• Must have started your business at least a year ago.
• Average monthly revenue of at least $3,000.
• All businesses are unique and are subject to approval and review.

Min. Credit score

The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

• Streamlined application process with minimal paperwork.
• Financing from $2,000 to $250,000 available.
• Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
• Monthly repayment schedule (as opposed to daily or weekly).
• No prepayment penalties, account maintenance fees or draw fees.

• Must have online checking or PayPal account to verify cash flow.
• Personal guarantee required.
• Complex monthly fee structure makes it difficult to compare costs to other lenders.

• Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
• Must have started your business at least a year ago.
• Average monthly revenue of at least $3,000.
• All businesses are unique and are subject to approval and review.

Large loan amounts

Fora Financial offers short-term business loans in amounts up to $1.5 million. Repayment terms are available up to 18 months.

Fora Financial - Online term loan

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Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.

• Cash can be available quickly.
• Get a discount for prepaying.
• No collateral required.
• Low minimum credit score requirement.

• 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.

• In business for at least six months.
• At least $20,000 per month in revenue.
• No open bankruptcies or dismissed bankruptcies within the past year.

Min. Credit score

Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.

• Cash can be available quickly.
• Get a discount for prepaying.
• No collateral required.
• Low minimum credit score requirement.

• 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.

• In business for at least six months.
• At least $20,000 per month in revenue.
• No open bankruptcies or dismissed bankruptcies within the past year.

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AltLINE can provide business-to-business companies with fast access to cash that’s currently tied up in unpaid invoices.

AltLINE - Invoice Factoring

• Capital available within 24 to 48 hours.
• No collateral required.
• Manages payment collection from your customers.
• Accepts startups and businesses with bad credit.

• Fees can become expensive the longer it takes your customers to pay.
• Difficult to compare factoring costs to other types of business loans.

• 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.

Min. Credit score

• Capital available within 24 to 48 hours.
• No collateral required.
• Manages payment collection from your customers.
• Accepts startups and businesses with bad credit.

• Fees can become expensive the longer it takes your customers to pay.
• Difficult to compare factoring costs to other types of business loans.

• 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.

Expansion Capital Group issues short-term funding to borrowers with a minimum credit score of 500 or higher. Like all merchant cash advances, however, this product may be expensive.

Expansion Capital Group Merchant Cash Advance

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Expansion Capital Group can provide fast and easy financing for newer businesses and borrowers with bad credit.

• Simple application with minimal documentation required.
• Low minimum credit score requirement.
• Daily or weekly repayment available.

• Business assets required as collateral in some cases.
• Factor rate and fee information not available on website.

• Minimum credit score: 500.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

Min. Credit score

Expansion Capital Group can provide fast and easy financing for newer businesses and borrowers with bad credit.

• Simple application with minimal documentation required.
• Low minimum credit score requirement.
• Daily or weekly repayment available.

• Business assets required as collateral in some cases.
• Factor rate and fee information not available on website.

• Minimum credit score: 500.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

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How Much Do You Need?

What is a short-term business loan?

A short-term business loan is a loan that typically has a shorter repayment period, ranging from three to 12 months — although some terms may go up to 24 months.

Short-term business loans can be good options for covering working capital needs and short-term expenses, paying for emergency expenses or taking advantage of an unexpected business opportunity.

How do short-term business loans work?

Short-term business loans are generally structured as lump sums of capital that you pay back over a set period of time, or term. These loans are usually repaid on a daily or weekly basis, meaning you’ll make larger, more frequent payments than you would with a long-term business loan.

Short-term loans are most often issued by online lenders, which offer fast funding and streamlined applications. Compared with bank or Small Business Administration lenders, short-term lenders typically have more flexible qualification requirements and may work with startups or businesses with bad credit.

Short-term business loan interest rates

Short-term business loans generally have higher interest rates than longer-term loans or more traditional financing options. Interest rates can range anywhere from 10% to 99% APR.

And although some short-term lenders use an annual percentage rate, others might offer a simple interest rate, or even a factor rate. You should always calculate these rates (and fees) into an APR, as this makes it easier to compare products and is the best way to understand how much the loan costs.

Types of short-term business loans

Business term loan

A business term loan provides a one-time infusion of capital into your business. It offers a lump sum of cash that you repay over a set period of time, with interest, to the lender. Term loans can be used for a variety of purposes such as paying short-term expenses, investing in specific projects or making large purchases.

Business line of credit

A business line of credit allows you to access capital as it’s needed for your business. After a lender approves you for a set limit, you have the flexibility to determine how much money to withdraw and when. You’ll make regular payments and pay interest on the funds you draw. Lines of credit can be a good option for working capital, cash flow gaps, seasonal slows and emergency funding.

Invoice factoring

For business-to-business companies, invoice factoring can be an option for short-term funding. Invoice factoring involves selling unpaid invoices to a factoring company at a discount in exchange for a cash advance. The factoring company then assumes responsibility for collecting payment from your customers. It can be a good option if your business has a large amount of cash tied up in unpaid invoices.

Merchant cash advance

A merchant cash advance (MCA) can be an option for a business that has substantial debit and credit card sales. MCA companies give you an upfront sum of capital that you repay using a percentage of your debit and credit card sales, plus a fee. MCAs can have extremely high APRs, however, so they should be used as a last resort option.

Pros and cons of short-term business loans

Pros

Short-term business loans typically don’t have restrictions on the ways you can use them. Because these loans have short repayment terms and fund quickly, however, they’re often best suited for immediate or unexpected expenses.

If you need a fast business loan, some short-term lenders can provide financing in as little as 24 hours. And compared with bank lenders, which may take weeks to process your application, short-term business loans are often funded within a matter of days.

Most short-term business loans are issued by online lenders, which typically offer streamlined applications. You can usually complete and submit an online application in a matter of minutes, with minimal documentation required.

Short-term lenders generally have more lenient qualification requirements compared with more traditional business lenders. Startups or businesses with bad credit may be able to qualify for a short-term business loan.

Cons

Short-term business loans typically have higher interest rates and fees compared with long-term loans. Business bank loans, for example, have annual percentage rates that range from 6.14% to 12.47% whereas short-term loans have rates that range anywhere from 6% to 99% .

Short-term lenders often require payments daily or weekly as opposed to monthly. This means you’re making larger, more frequent payments over a shorter term. For some businesses, this payment schedule can impede cash flow and can be difficult to manage.

The speed and ease of qualifying for some short-term business loans can be problematic if you can’t keep up with your payments. When these daily or weekly payments cut into your cash flow, you may feel the need to take out another loan or refinance in order to repay. With high interest rates and frequent repayments, this cycle of debt can be difficult to break.

When to consider a short-term business loan

Working capital needs. Short-term business loans can provide quick access to funds that can be used to cover day-to-day business operations and expenses such as rent, supplies, inventory and payroll. These loans may be a good option for businesses that can’t qualify for more traditional financing.

Unexpected business opportunity. If you receive an unexpected business opportunity, a short-term loan may be a good option to help grow revenue or even cut costs. It can provide the funds needed to take on a new customer and hire additional staff or take advantage of an inventory discount for buying in bulk, for example.

Seasonal cash flow gaps. Seasonal businesses often experience interruptions in cash flow during the off-season. A short-term business loan can provide quick access to the funds you need to keep operations running when sales fall off or meet the costs of preparing for the upcoming season.

Emergency expenses. If you need to replace a crucial piece of broken equipment, a short-term loan may be a good option. These loans can help you cover emergency expenses as a result of a natural disaster, accident or economic difficulty.

When to consider an alternative to a short-term business loan

In some cases a short-term loan may not be your best option. Here are instances where you might consider an alternative:

Loan payment amount is too large. If the monthly payment amount on your short-term loan is outside your budget, a business loan with a longer repayment period may offer a lower monthly payment. Long-term business loans can have terms up to 10 years, and even 25 years, in some cases. Depending on the rate, however, you may pay more in interest over the life of the loan.

Frequent payments will disrupt your cash flow. Daily or weekly payments are often required by short-term lenders. If frequent payments would disrupt your cash flow, you may want to consider a business credit card which operates similar to a business line of credit and typically requires monthly payments. However, carrying a balance instead of paying off the card in full each month can get expensive, depending on the interest rate charged by the lender.

Taking on any additional debt isn’t possible. If your business isn’t generating enough revenue to take on another debt payment, business grants may be an option. Business grants don’t require repayment, but competition for this “free money” is strong.

Can’t meet lender requirements. If you don’t meet lender requirements for a loan because you have a low credit score or haven’t been in business long, consider using crowdfunding to create a fundraising campaign for your business. It can be a low-cost way to raise capital and also an opportunity to build an enthusiastic client base — without taking on additional debt.

How to get a short-term business loan

1. Assess your financing needs

You’ll want to think about how much funding you need and what you want to use it for. You’ll also want to consider what type of business loan is right for you. In addition to term loans, business lines of credit and invoice factoring are common forms of short-term financing.

Since short-term business loans have more frequent payments and higher interest rates, you’ll want to make sure your business can afford any debt you take on.

2. Evaluate your qualifications

Although short-term lenders often have flexible business loan requirements, you’ll want to know where your company stands before applying. You can check your credit score, time in business and annual revenue — as many lenders use these three criteria to evaluate your loan application.

3. Find and compare lenders

Once you have an understanding of your funding needs and qualifications, you can explore lenders to find the best choice for your business.