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Best Short-Term Loans For Small Businesses In 2024

Short-term business loans could help your business get out of a temporary financial hardship or capitalize on an opportunity. Could they be right for you?

    Shannon Vissers
  • Last updated onUpdated

  • Erica Seppala
  • REVIEWED BY

    Erica Seppala

    Editor & Senior Staff Writer

Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.

Short-term business loans are loans you must pay back quickly—usually in less than a year.

Though fees can be high, short-term loans are fast, with a 1-3 day time to funding. These loans also tend to have relaxed credit score requirements, minimal time in business requirements (often six months or less), and minimal or no collateral requirements.

Let’s look at the best short-term business loans available to small businesses.

Learn More About Our Top Picks

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BusinessLoans.com

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  • Offers: Term loans, lines of credit, & merchant cash advances
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: N/A
  • Offers: Term loans, lines of credit, & merchant cash advances
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: N/A

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Revenued

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  • Offers: Business credit card & credit line
  • Revenue Requirements: $180K/year
  • Minimum Credit Score: N/A
  • Offers: Business credit card & credit line
  • Revenue Requirements: $180K/year
  • Minimum Credit Score: N/A

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Lendio

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  • Offers: Accounts receivable financing & other business loans
  • Revenue Requirements: $96K/year
  • Minimum Credit Score: N/A
  • Offers: Accounts receivable financing & other business loans
  • Revenue Requirements: $96K/year
  • Minimum Credit Score: N/A

Apply Now

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OnDeck

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  • Offers: Short-term loans & lines of credit
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: 625
  • Offers: Short-term loans & lines of credit
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: 625

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Fora Financial

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  • Offers: Short-term loans & merchant cash advances
  • Revenue Requirements: $250K/year
  • Minimum Credit Score: 570
  • Offers: Short-term loans & merchant cash advances
  • Revenue Requirements: $250K/year
  • Minimum Credit Score: 570

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Fundbox

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  • Offers: Short-term lines of credit
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: 600
  • Offers: Short-term lines of credit
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: 600

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Read more below to learn why we chose these options.

Best Short-Term Business Loan Options

Let’s explore your best short-term business financing options. All of these short-term business loans offer honest financing solutions that can get you over a temporary business challenge. The best lender for your needs will depend on your business model as well as your credit score and other business credentials.

  • BusinessLoans.com: Best For Short-Term Financing Options
  • Revenued: Best Short-Term Loans With No Credit Check
  • Lendio: Best For Accounts Receivable Financing
  • OnDeck: Best Fast Short-Term Business Loans
  • Fora Financial: Best Short-Term Business Loans For Bad Credit
  • Fundbox: Best Short-Term Business Line Of Credit

How The Best Short-Term Loans For Small Business Compare

Type Of Short-Term LoanMin. Credit ScoreMax. Term LengthMax. Borrowing Amount
BusinessLoans.comTerm loanN/A5 years$3 million
RevenuedMerchant cash advanceN/A24 months$1 million
LendioAccounts receivable financing, STL, MCAN/A7 years$10 million
OnDeckTerm loan or line of credit62524 months$250K
Fora FinancialTerm loan or merchant cash advance57018 months$1.5 million
FundboxLine of credit60024 weeks$150K

BusinessLoans.com: Best For Short-Term Financing Options

BusinessLoans.com

Total Rating 4.0
Rates & Fees4.6

Services4.0

Eligibility Requirements4.1

Application3.0

Sales & Advertising Transparency3.6

Customer Service4.1

User Reviews4.4



Pros

  • Multiple short-term business financing options
  • Time-saving application process
  • Relaxed borrower requirements
  • High borrowing amounts

Cons

  • Minimal pricing information disclosed on website
  • Fees can be high

Why We Chose BusinessLoans.com For Short-Term Financing Options

BusinessLoans.com is a free business financing marketplace that provides businesses with multiple short-term financing options suited to their needs. This way, you can save time and choose the offer that works best for you.

After you fill out a quick form with information about your business, BusinessLoans.com will connect you with suitable pre-approval offers from lenders in its network. Some short-term loan types available through BusinessLoans.com include term loans, merchant cash advances, invoice factoring, and lines of credit.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com has no specific credit score or other borrower requirements. However, they recommend that your businesses should make at least $100,000 per year and have been in business for at least 6 months. But it is still possible that BusinessLoans.com will be able to find an offer for you even if you don’t quite meet these minimums.

BusinessLoans.com Rates & Fees

BusinessLoans.com does not list rates or fee information on its website. Fees will vary depending on which lender in BusinessLoans.com’s network you receive an offer from.

When To Use BusinessLoans.com

  • You want to see what short-term business financing options you qualify for
  • You have bad credit but strong business revenues

Get Started With BusinessLoans.com

Read our in-depth review

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Revenued: Best Short-Term Loans With No Credit Check

Total Rating 3.7
Rates & Fees2.5

Services3.4

Eligibility Requirements4.0

Application4.8

Sales & Advertising Transparency3.8

Customer Service4.3

User Reviews4.9



Pros

  • Access to both business credit card & credit line
  • No credit check to apply
  • Credit limit grows automatically with your business revenue

Cons

  • Factor rates can be high
  • Not available to startups
  • Doesn’t help build credit

Why We Chose Revenued For No Credit Check

With Revenued, small businesses can access quick and easy cash draws, even with poor credit or no credit, as this short-term lender requires no credit check. Revenued offers a business spending card, which is tied to your future business revenue and also allows you to open a flexible line of credit, called Flex Line, with your future sales as collateral. You can use Flex Line to withdraw cash from your credit line at your convenience.

This short-term financing option is convenient for small, frequent cash draws, particularly if you have good cash flow but bad credit.

Revenued Eligibility Requirements

Revenued requires business revenues of at least $15,000/month. You also need a minimum of 6 months in business and to maintain an average daily business bank account balance of at least $1,000. Credit score is not a consideration.

Revenued Rates & Fees

Revenued cash advances have factor rate between 1.1 and 1.5. There are no fees related to the credit card, as it is a charge card with no annual fee; you will, however, need to pay the balance in full every month.

When To Use Revenued

  • You need a merchant cash advance with bad credit
  • You need a business credit card with bad credit

Get Started With Revenued

Read our in-depth review

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Lendio: Best For Accounts Receivable Financing

Total Rating 4.8
Rates & Fees5.0

Services5.0

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.9



Pros

  • Multiple types of financing available
  • High borrowing amounts
  • Relaxed borrower requirements for AR financing
  • Useful for businesses with outstanding invoices

Cons

  • Rates can be expensive
  • Funding isn’t always as quick as advertised

Why We Chose Lendio For AR Financing

Similar to BusinessLoans.com, Lendio is a business financing platform that aggregates loan offers from lenders and matches them to its customers. The platform matches its users to a variety of business loan options, including various short-term business financing options.

One important form of short-term business financing you can access through Lendio is accounts receivable financing, a category that includes invoice factoring, inventory financing, and purchase order financing. Using AR financing, such as invoice financing, businesses with outstanding invoices can quickly free up cash from unpaid invoices.

Lendio also offers term loans and merchant cash advances with short-term lengths.

Lendio Eligibility Requirements

While the specific borrower requirements will vary depending on which of Lendio’s lending partners you get matched with, Lendio recommends that you have a personal credit score of at least 600, at least 6 months in business, and business revenues of at least $8,000/month ($96K/year) before applying for short-term loans.

MCA applicants only need a credit score of 500, in addition to $8K monthly revenue and 6 months in business.

Lendio does not have a minimum credit score or time-in-business requirement for AR financing, though the monthly income requirement is a little higher at $10,000/month, or $120K/year.

Lendio Rates & Fees

Looking at AR financing specifically, Lendio says loan terms are up to a year, with interest rates as low as 3%. You can receive up to 90% of your receivables amount and will receive your cash in as little as 24 hours after approval.

For its term laons, Lendio offers term lengths as long as 7 years. Lendio says rates on these term loans are as low as 8%.

For merchant cash advances, Lendio’s term lengths max out at 36 months, with factor rates starting at 1.08.

When To Use Lendio

  • You have fair credit and want to explore various short-term financing options
  • You have a B2B business and want to explore accounts receivable financing options

Get Started With Lendio

Read our in-depth review

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OnDeck: Best Fast Short-Term Business Loans

Total Rating 3.9
Rates & Fees4.6

Services2.9

Eligibility Requirements3.8

Application4.5

Sales & Advertising Transparency3.8

Customer Service4.1

User Reviews4.0



Pros

  • Same-day funding
  • Lower costs for repeat customers
  • Instant funding option for $1K-$10K LOC draws
  • Builds business credit

Cons

  • Financing not available in some states
  • High APRs
  • Only two loan types to choose from
  • Low max. borrowing amount

Why We Chose OnDeck For Speed

Whether you need $5,000 or $250,000, OnDeck offers short-term loans and lines of credit to businesses in need of fast cash. If your loan application is accepted, you may be able to access your funds within the same business day. OnDeck's same-day business loans are not cheap, but they are fast and reliable.

OnDeck also offers revolving lines of credit that run from $6,000 to $100,000 with same-day approval. If and when you're approved, you'll be able to start withdrawing funds immediately. For small draws from $1K-$10K, you can use the Instant Funding option which allows you to receive requested funds in seconds, even on nights and weeikends.

OnDeck Eligibility Requirements

To qualify for an OnDeck short-term loan or line of credit, you’ll need a minimum credit score of 625, at least 1 year in business, and business income of at least $100,000/year.

OnDeck Rates & Fees

The average APR for an OnDeck short-term loan is 56.1%. Term lengths are up to 24 months, and payments are required on a daily or weekly basis.

With an OnDeck LOC, term lengths are 12, 18, or 24 months per draw, there are no draw fees, and you can repay early without facing any penalty. The average APR for OnDeck lines of credit is 55.9%.

When To Use OnDeck

  • You have fair credit and need a small, fast loan
  • You have fair credit and need a convenient line of credit

Get Started With OnDeck

Read our in-depth review

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Fora Financial: Best Short-Term Business Loans For Bad Credit

Fora Financial

Total Rating 3.6
Rates & Fees3.2

Services3.5

Eligibility Requirements4.2

Application4.3

Sales & Advertising Transparency3.2

Customer Service2.8

User Reviews3.9



Pros

  • Low FICO requirements
  • Early repayment discount
  • High borrowing amounts
  • Opportunity to borrow more once you pay off 60% of loan

Cons

  • High borrowing fees
  • Not as fast as some other short-term lenders
  • Origination fee charged

Why We Chose Fora Financial For Bad Credit

Fora Financial is a direct lender offering short-term business loans and merchant cash advances. Though businesses with good credit can probably find better rates, Fora Financial is a good choice if you need a business loan for bad credit. Fora also offers pre-payment discounts and higher borrowing amounts than other short-term business lenders---up to $1.5 million---with a 24-72 hour turnaround.

Fora Financial Eligibility Requirements

To qualify for funding from Fora Financial, businesses will need a minimum credit score of 570, as well as 6 months in business. As far as business revenue, you need to bring in $250K/year.

Fora Financial Rates & Fees

Fora’s loan terms have a maximum length of 18 months. Factor rates range from 1.1-1.9, plus a 1-4% origination fee taken off the top of the loan.

When To Use Fora Financial

  • You have bad credit and need a loan or cash advance up to $1.5 million
  • Your annual sales total at least $250K

Get Started With Fora Financial

Read our in-depth review

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Fundbox: Best Short-Term Business Line Of Credit

Total Rating 3.8
Rates & Fees3.1

Services3.6

Eligibility Requirements4.5

Application4.8

Sales & Advertising Transparency3.8

Customer Service3.0

User Reviews4.4



Pros

  • Apply & draw funds directly from the Fundbox app
  • Convenient for ongoing borrowing needs
  • Funds are disbursed quickly
  • Transparent pricing

Cons

  • Low borrowing amounts
  • Short repayment terms
  • High fees

Why We Chose Fundbox For Best Business Line Of Credit

Fundbox is a super convenient and flexible form of financing for businesses that need 24/7 access to a line of credit to solve cash flow issues. You can both apply and draw funds right from the Fundbox app (or from your online dashboard); Stripe (check out our review) users can also use their Stripe dashboard to apply. With each Fundbox cash draw, you can choose the length of your term---12 or 24 weeks---and see upfront all of your weekly payment amounts so you won't be surprised later.

As with other short-term business financing options, Fundbox fees can be on the high side. But if your business needs easy access to cash on-demand, Fundbox's convenience is unmatched.

Fundbox Eligibility Requirements

Fundbox requires a FICO of 600 and $100,000 in annual business revenue. Ideally, applicants will have at least 6 months in business. Note that before applying, you’ll need at least three months of transactions in a business bank account or at least two months of activity using compatible accounting or invoicing software.

Fundbox Rates & Fees

Fundbox’s lines of credit are offered for up to $150,000, and repayments are made in equal installments over 12 or 24 weeks. The borrowing fee begins at 4.66% for 12-week terms and 8.99% for 24-week terms, and there is no prepayment penalty. If you’re approved, funds will be deposited into your business bank account within one or two days of your withdrawal request. There are no draw fees or money transfer fees.

When To Use Fundbox

  • You have fair credit and need small cash infusions from time to time
  • You have good cash flow and can repay your cash draws quickly

Get Started With Fundbox

Read our in-depth review

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Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

  • Rates & Fees: 20% of the total star rating
  • Services: 20% of the total star rating
  • Eligibility Requirements: 20% of the total star rating
  • Application: 15% of the total star rating
  • Sales & Advertising Transparency: 10% of the total star rating
  • Customer Support: 5% of the total star rating
  • User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

Best Types Of Short-Term Business Loans

Some popular types of business loans with short-term lengths include:

  • Term Loan: A lump-sum loan, repaid in fixed daily or weekly installments, used for short-term investments or working capital.
  • Merchant Cash Advance: An advance on your future credit card sales, repaid daily as a percentage of your sales.
  • Line Of Credit: A credit line that you can draw from as needed and repay in daily or weekly installments.
  • Invoice Financing: A loan that uses your unpaid invoices as collateral to help smooth cash flow issues when customers don’t pay on time.

These types of short-term loans can be useful for when your business needs cash fast to cover gaps in revenue, make payroll, purchase inventory, or cover another business expenditure.

How To Choose The Best Short-Term Loan For Your Business

Short-term loans don’t have the best reputation, to put it mildly.

However, though such loans can be expensive, they won’t necessarily end up harming your business’s future. Just make sure you adhere to the following best practices.

Be Aware Of The Overall Cost Of The Loan

Remember that the short-term loan interest rate (or factor rate) isn’t the only means by which a short-term loan can cost you. You may also be on the hook for origination fees, draw fees, or other fees, depending on the lender. And if the loan carries a variable interest rate, you’ll need to account for the fact that the prime interest rate may rise, thus increasing your overall borrowing costs.

It’s essential to have a plan for paying off your loan, and you can effectively do that only if you’re aware of the true overall cost of the loan.

Make Sure You Can Handle The Repayment Schedule

Short-term loans tend to require weekly or even daily repayments. This can be problematic if your business experiences inconsistent cash flow. Make sure you’re able to handle the repayment schedule before you take out a short-term loan.

Look Out For Prepayment Penalties

With short-term lending, your loan terms may not include an explicit prepayment penalty, but most short-term loans frontload all the interest that would otherwise accumulate over time and charge it to you as a factor rate. That means you won’t save money by repaying the loan early.

However, some short-term lenders offer discounts for early repayment. If you foresee being able to pay off your short-term loan early, look for a lender that offers early repayment discounts with its short-term loans.

If a short-term loan doesn’t sound right for you, check out our other best small business loan options.

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Shannon Vissers

Shannon Vissers

Lead Staff Writer at Merchant Maverick
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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