A closer look at our top short-term business loans
Credibly merchant cash advance: Best for merchant cash advances
Overview: Founded in 2010, Credibly offers several types of small business loans, including merchant cash advances. With this type of loan, your payments are based on a percentage of your company’s future income until the advance is paid off, helping you avoid large, difficult payments.
Why Credibly is the best for merchant cash advances: Credibly has easy credit requirements, only asking for a FICO score of 550 or higher. It also has quick approvals and funding, which is essential for merchants in need of quick cash.
Who Credibly’s merchant cash advance is good for: You might consider a Credibly merchant cash advance if you have average credit, you’re in a rush to get funding and don’t mind paying high fees to cover a short-term cash flow interruption.
Fora Financial small business loan: Best for bad credit
Overview: Fora Financial, a working capital lender, has some of the lightest eligibility requirements among lenders on this list. The company offers prepayment discounts on its small business term loans, so you may save if you pay the loan off quickly.
Why Fora Financial is the best for bad credit: Fora has generous qualification requirements, which is important if your credit isn’t great. You can get a flexible, high-limit loan after just three months of operating and with a poor FICO score in the 500s.
Who Fora Financial's small business loan is good for: If you’re a newer business owner without a strong credit profile, a Fora Financial small business loan might work for you — especially if you think you can repay your loan quickly.
Funding Circle business term loan: Best for secured loan
Overview: Funding Circle is an online lender that has originated almost $20 billion in loans to 143,000 businesses around the world. It offers term loans, business lines of credit and SBA 7(a) loans.
Why Funding Circle is best for a secured loan: Funding Circle’s term loans are secured and can be repaid in as little as six months. But if that is too short, you can choose longer terms, going all the way up to seven years. The streamlined application process can be completed in as little as six minutes, and if approved, funds can be received within two days.
Who Funding Circle's secured business term loan is good for: If you have been in business for at least two years and have a personal FICO credit score of 660, you may be eligible for a loan with reasonably low interest rates.
Backd line of credit: Best for fast funding
Overview: Based in Austin, Texas, Backd offers working capital loans and lines of credit for small business borrowers. As a business owner, you can apply for a Backd line of credit and get preapproval with a soft credit check. If approved, you can draw between $10,000 and $750,000 for your company’s short-term needs.
Why Backd is best for fast funding: With instant preapprovals and access to funding in as little as 24 hours, Backd’s lines of credit might appeal if you need cash quickly.
Who Backd's line of credit is good for: Consider a Backd line of credit if you’re running a relatively new business that could benefit from prompt access to funding. As a trade-off for this speed and convenience, though, you’ll need to be okay with at least an 18.00 percent simple interest rate and be able to make weekly repayments.
National Funding working capital loan: Best for early payoff discount
Overview: California-based online lender National Funding may be a good choice for young businesses — so long as they’re making enough revenue. You may qualify for a loan as large as $500,000 after just six months of operating. It also offers equipment financing that companies can use to buy the tools they need to operate.
Why National Funding is best for early payoff discount: National Funding only requires six months in business and offers loans up to $500,000. This flexibility allows businesses to borrow only the needed amount. Plus, there are no prepayment penalties, and borrowers can receive an early payment discount if they're able to pay off their loan in full ahead of schedule.
Who National Funding's working capital loan is good for: If your business generates high cash flow and needs money to keep growing, this loan could be worth exploring.
QuickBridge short-term loans: Best for flexible funding
Overview: QuickBridge prides itself on providing short-term funding solutions to a variety of industries and small businesses, from a small-town plumber to a large corporation. It tailors the lending options to your business, which you can discuss with a dedicated Funding Specialist.
Why QuickBridge is best for flexible funding: QuickBridge allows your business to get funding up to $500,000 for short-term loans up to 18 months. You can apply with just six months in business and a 660 personal credit score, flexible requirements compared to most lenders. But your business will need a sizable annual revenue of $250,000 to qualify. QuickBridge’s loans can be funded in as little as 24 hours.
You also won’t need to put up collateral for its loans, though, like most business loans, you will have to sign a personal guarantee. Additionally, if you pay off the loan early, QuickBridge offers an early payoff discount on the total loan payment.
Who QuickBridge is good for: QuickBridge is best for businesses with established and consistent revenue, though startups could potentially qualify. You will need a business bank account to apply. Once approved, loan repayments are daily or weekly, which can be a tight payment plan compared to longer term loans’ monthly payments.
Bluevine line of credit: Best for established businesses
Overview: Bluevine is a financial technology company that offers lines of credit with relatively low interest rates. You can get lines of credit as large as $250,000 but will only be eligible if you have an established business with nearly $500,000 in revenue each year.
Why Bluevine is best for established businesses: Bluevine only lends to companies that have been around for a couple of years. That gives it the flexibility to offer relatively low simple interest rates. Keep in mind that simple interest rates don’t include fees, so the actual APR could be much higher – even as high as 50.00 percent APR.
Who Bluevine’s line of credit is good for: If you have a seasonal business (like a landscaping or pool-cleaning company) or aren’t sure how much money to borrow, this product could be a good option. Because it’s a line of credit, it allows you to draw money as needed, paying interest only on what you’ve borrowed.
eCapital invoice factoring: Best for invoice factoring
Overview: Alternative financing company eCapital has been offering invoice factoring, asset-based lending and equipment refinancing since 2006.
Why eCapital is best for invoice factoring: The onboarding process takes at least a week for commercial businesses, though only two to four days for transportation businesses. But once you're onboarded, eCapital can respond to funding requests within 24 hours. They can fund up to $30 million, a high limit compared to most online lenders and factoring companies.
Who eCapital's invoice factoring is good for: If you expect your business will want to use invoice factoring to fill future cash flow gaps, you may want to go through eCapital's onboarding process for fast access to working capital next time you need it.
OnDeck line of credit: Best for building business credit
Overview: OnDeck is an online lender that has been providing small business loans since 2006. Its line of credit lets companies access up to $100,000, which can be paid back in weekly installments over the course of 12, 18 or 24 months.
Why OnDeck is best for building business credit: OnDeck reports your payment history to credit bureaus. If you can repay your line of credit in full and on time, this type of loan is great for building business credit.
Who OnDeck's line of credit is good for: OnDeck’s line of credit is best suited for businesses that need funding as soon as possible and haven’t been able to get approved by other lenders. But since the APRs are so steep, you’ll need to be confident that you can afford to pay back what you’ve borrowed — or your business credit could take a hit.
American Express Business Blueprint™: Best for lines of credit
Overview: American Express Business Blueprint™, formerly Kabbage, is a service from American Express offering flexible lines of credit. What makes the service unusual is that it doesn’t charge interest, instead assessing a monthly fee when you have an outstanding balance.
Why American Express Business Blueprint™ is the best for lines of credit: American Express Business Blueprint™ offers lines of credit with flexible amounts and fair eligibility requirements.
Who American Express Business Blueprint™ is good for: These lines of credit could be suitable for you if you’re a small business owner with fair credit and want to draw money as you need it. However, you should be comfortable with putting up collateral and a personal guarantee and understand how the unique fee structure works. You also must have started your business at least a year ago.
* All businesses are unique and are subject to approval and review.