The Best Cash Flow Loans For Small Businesses In 2023
Cash flow shortages can slow your momentum, but a business cash flow loan can help. Keep reading to see which lenders can help you resolve your cash flow issues.
Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
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Erica SeppalaErica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
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Unpaid invoices, emergency expenses, and low profits during a slow season are just a few of the factors that contribute to cash flow shortages in small businesses. At some point, nearly every business faces a cash flow issue. If this happens to your business, you can wait out the storm, or you can take action with a business cash flow loan.
Unsure of where to start? Kick off your search with these five best cash flow loans for small businesses.
If you need to boost your business’s cash flow, consider one of these cash flow loans. From installment loans to flexible lines of credit, you’ll find the funding you need with these lenders, including BusinessLoans.com, OnDeck, LoanBuilder, Fundbox, and Bluevine.
Why We Chose BusinessLoans.com For Best Cash Flow Loans
BusinessLoans.com is a great way to save time when comparing loan options. If you want the best rates and terms for a variety of cash flow loans, BusinessLoans.com simplifies the process. With just one application, this loan marketplace connects you with multiple funding partners that offer everything from long-term installment loans to flexible lines of credit.
BusinessLoans.com can even help you get funded if you’re a new business, don’t meet revenue requirements for traditional lenders, or have a low personal credit score.
BusinessLoans.com Services
BusinessLoans.com is a loan marketplace that can help you find funding up to $3 million with products like:
Long-term loans
Short-term loans
Merchant cash advances
Lines of credit
BusinessLoans.com Rates & Fees
Because BusinessLoans.com partners with numerous lenders, rates and fees vary.
BusinessLoans.com Eligibility Requirements
Since numerous funding options are available, there are no hard credit score requirements. BusinessLoans.com recommends businesses be in operation for at least six months and have annual revenue of at least $100,000. However, funding options may be available even if you don’t meet these minimum requirements.
If you need to improve your cash flow without delay, OnDeck is worth considering. The application takes 10 minutes or less, and you can get approved and receive your funds as quickly as the same day.
Additionally, OnDeck offers two types of loans to best fit your needs, whether you need a lump sum for an upfront purchase or a flexible line of credit to use as working capital.
OnDeck Services
OnDeck offers the following lending services:
Term loans up to $250,000
Lines of credit up to $100,000
OnDeck Rates & Fees
Rates for OnDeck’s term loans start at 29.9%, although the company notes that the average rate is 60.9%. An origination fee of up to 5% may apply.
Rates for lines of credit also start at 29.9%, but the average for borrowers is 52.6%.
OnDeck Eligibility Requirements
The minimum requirements for an OnDeck loan or line of credit are as follows:
Most lenders require borrowers to have been in business for 12-24 months, but LoanBuilder works with businesses that have been in operations for as little as nine months.
LoanBuilder isn’t just a good option for newer businesses. With credit and revenue requirements that are lower than banks (and even other online lenders), businesses that can’t receive funding elsewhere may be approved. LoanBuilder uses a single fixed-fee payment model with no hidden fees and also offers funding as quickly as the next business day.
LoanBuilder Services
LoanBuilder provides short-term business loans up to $500,000.
LoanBuilder Rates & Fees
LoanBuilder charges a single fixed-rate borrowing fee for its loans. These fees range from 2.9% to 18.72% of the borrowing amount. There are no origination fees or hidden fees.
LoanBuilder Eligibility Requirements
To receive a LoanBuilder loan, you must meet these minimum requirements:
BlueVine provides business lines of credit up to $250,000.
Bluevine Rates & Fees
Unfortunately, Bluevine isn’t very transparent when it comes to its rates and fees. The lender charges simple interest rates starting at 6.2%. A draw fee applies when you withdraw funds from your line of credit, although these fees aren’t disclosed publicly.
There are no setup fees, maintenance fees, subscription fees, or termination fees.
Bluevine Eligibility Requirements
Borrowers must meet these minimum requirements to qualify for a Bluevine line of credit:
If you don’t meet the requirements for a Bluevine line of credit, Fundbox has you covered. With low borrowing requirements, Fundbox provides lines of credit to businesses that might not meet the revenue, time in business, and credit score requirements of other lenders.
Fundbox has a fast and easy application process, and you may be able to receive funds from your first draw as quickly as the next business day — perfect for businesses that need fast funding for improved cash flow.
Fundbox Services
Fundbox specializes in business lines of credit up to $150,000.
Fundbox Rates & Fees
Fundbox charges a borrowing fee when funds are drawn from the line of credit. Fees start at 4.66% for 12-week terms and 8.99% for 24-week terms.
Fundbox Eligibility Requirements
To qualify for a Fundbox line of credit, you must meet these minimum requirements:
Before you choose a lender, you should be aware of the types of cash flow loans available. There are several types of loans that are ideal for increasing cash flow.
Installment Loans
Installment loans, also called term loans, are loans in which the borrower receives a lump sum of money that is paid back in regular installments.
Installment loans are paid back in regular installments, usually monthly. Most installment loans have term lengths between one and 25 years.
Because of the extended term lengths, installment loans are considered higher risk than other types of loans, and young and unstable businesses might have trouble qualifying. These loans are best for established businesses that want a longer period to repay debt.
Short-Term Loans
A short-term loan is a lump sum of money that is paid back in frequent, regular installments over a short timeframe.
Short-term loans are paid back in regular fixed installments on a weekly, or even daily, basis. For this reason, short-term loans are ideal for businesses with enough cash flow to afford frequent payments. Most short-term loans have term lengths between three and 18 months (with some up to 24 or 36 months).
Short-term loans are considered low-risk and are generally known for low borrower requirements, fast funding, and no specific collateral. This type of loan can be ideal for businesses in need of extra cash that have the existing cash flow to make frequent repayments.
Lines Of Credit
When you are approved for a line of credit, a lender gives you access to a credit line, which you can draw from at any time, up to the credit limit.
Any draws made on a line of credit are paid in regular installments. Most lines of credit are revolving — as soon as you pay off the amount you used, it gets added back into the total amount available on your credit line.
Lines of credit are relatively easy to qualify for because such a wide variety of lenders offer them. They are ideal for nearly any type of business in need of a cash flow solution or looking for peace of mind regarding unexpected expenses. The only downside is that if you use up your credit line all at once, you may not have access to the cash you need until you pay some of it back.
Invoice Factoring
Invoice factoring is a cash flow solution in which you sell your unpaid invoices to an invoice factor in exchange for immediate cash. The tradeoff is that the invoice factor keeps a portion of the cash from the invoice on reserve until your customer pays. Once paid, the factor will return that reserve minus a small fee.
Contract lengths and the invoices eligible for factoring vary by lender.
Invoice factoring is a great solution for businesses that suffer from slow-paying customers and need immediate cash. You do lose a small portion of your invoice sale to the factor’s fees, but this can be more than worth the cost for many businesses that rely heavily on invoices.
The Bottom Line On Small Business Cash Flow Loans
With so many great options, it can be hard to know which is right for your business. When choosing a cash flow loan, ask yourself these questions:
What is the purpose of the loan?
Which type of loan is best for my business needs?
What’s my credit score and monthly/yearly revenue?
Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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