Best short-term business loans in December 2024

Credibly is best for startups and bad credit borrowers as merchant cash advances (MCAs) are easier to qualify for. Credibly accepts personal credit scores as low as 500 with just three months in business. While these requirements are common for MCAs, they are difficult to find on the market, especially with credible, established lenders like Credibly. Credibly’s MCA also offers terms as short as three months, helping you pay off the loan quickly.

• Founded in 2010
• Online application
• Same-day funding 
• Accepts bad credit

Fora Financial is best for bad credit borrowers since it has lenient eligibility requirements. You can get a flexible, high-limit loan after just six months of operating and with a poor FICO score of 570, a lower requirement than many lenders. Most online lenders accept a score of 600, while bank lenders often require a personal credit score of 680 or more.

• Founded in 2008
• Online application
• Accepts 570 credit score
• No collateral required

Funding Circle is best for borrowers with assets or collateral that can be used to secure a loan or line of credit.  You can get a loan as high as $500,000 with repayments stretching up to seven years for term loans. That long term ensures a manageable payment for your business. Plus, with secured loans, you’re more likely to receive low interest rates, and that’s true for Funding Circle. The lender sets its lowest interest rate to 7.49 percent, on par with bank lenders.

• Founded in 2010
• Online application 
• 90% customer satisfaction
• No prepayment penalties
• Accepts low revenue

Backd is best for businesses needing fast funding. Backd can preapprove your business loan instantly and fund within 1 business day. Its working capital loan also offers multiple repayment options, with either daily, weekly or bi-weekly repayments. These options are designed to help you find a payment schedule that fits neatly within your business budget. Plus, its unique buy now, pay later loan can help you pay for an item your business needs now up to $1.5 million, and then you can repay over the next 12 months.

• Founded in 2018
• Online application
• Accepts fair credit
• 24-hour funding

National Funding is best for business owners who may not qualify for funding from traditional lenders but have the ability to pay off their loans quickly. It accepts fair personal credit scores of 660 or higher and offers an early repayment discount of 6 percent to 7 percent depending on the loan type — as long as you repay the loan within 100 days of its beginning. This discount is important because National Funding charges factor rates, where early repayment typically doesn’t save the borrower any money.

• Established in 1999
• Inc. 5000 honoree
• Online application
• Early payoff discount
• Lowest payment guarantee on equipment leases

QuickBridge is best for borrowers who want flexible funding options. QuickBridge offers loans starting at $10,000 and up to $500,000 without providing collateral. With its early payoff discount, you can pay off your loan early without worrying about prepayment penalties if you qualify.

• Founded in 2011
• Online application
• 24-hour funding
• Early payoff discount

Bluevine is best for established businesses as its monthly repayment option caters to businesses with high revenue and several years of experience. For a line of credit with a six-month repayment term, it does help businesses with one year in business and $10,000 in monthly revenue.

But for a 12-month term offering monthly payments, you’ll need a 700 FICO score, three years in business and $80,000 in monthly revenue to qualify. This is one of the steepest requirements around for business lines of credit.

• Founded in 2013
• Online application
• Available in 47 states
• Accepts fair credit
• 24-hour funding

eCapital is best for businesses that regularly have invoices and are looking for working capital. eCapital can handle large volumes of invoices, funding up to $30 million. This funding amount is incredible compared to most online business loans that max out at $500,000. 

The lender offers both standard and non-notification factoring for large accounts. Non-notification factoring means that the lender won’t contact your clients when working with your business. eCapital can respond to funding requests within 24 hours once you apply.

• Founded in 2006
• Submit invoices online
• 24-hour funding available
• Freight factoring

OnDeck is best for business owners who may not have business credit but want to actively work to improve it, as OnDeck reports your payments to the credit bureaus. Since you don’t need perfect credit to apply, OnDeck provides the chance to build your credit score from a fair score of 625 to a higher score. Improving your score will help you qualify for the most competitive business loans and interest rates in the future.

• Founded in 2006
• Online application
• Same-day funding
• Early prepayment benefit
• Accepts fair credit

American Express Business Blueprint™ is best for businesses looking for accessible lines of credit with limits as low as $2,000 and up to $250,000. Many lines of credit start at $10,000, making it difficult to use this option for minor purchases. With American Express, you also get flexible repayment terms, with options ranging from 6, 12, 18 or 24 months. The fee ranges from 3.00% to 9.00% on six-month terms, 6.00% to 18.00% on 12-month terms, 9.00% to 27.00% on 18-month terms and 12.00% to 18.00% on 24-month terms. Once approved, you’ll make a monthly payment instead of the usual daily or weekly payment schedule. And you won’t get tagged with a prepayment penalty if you pay back the loan early.

• Available in 50 states
• Online application
• Low minimum revenue required
• Minimal loan fees

• Personal information, such as your address and social security number
• Employer identification number (EIN)
• Recent business bank statements
• Appraisal of business assets
• Recent personal and business tax returns
• Balance sheet with assets and liabilities
• Profit and loss statement
• Business licenses
• Business plan
• Business formation documents
• Franchise agreement, if relevant

This is one of the most popular business loan types. A business line of credit lets you draw funds from a pool of cash only when you need to, up to a limit. You only pay interest on the outstanding balance and can draw funds repeatedly as you need them up to the credit limit. These can be useful when you need flexibility, but depending on your creditworthiness and annual revenue, short-term line of credit rates may be high.

With business term loans, you get a lump sum at the start of the loan and pay it back over time in regular payments of fixed amounts. They’re useful for large one-time expenses. These loans may be called short-term business loans, working capital loans or bridge loans by the lender.

Invoice factoring involves selling your invoices to a factoring company that sends you a portion such as 90 percent upfront, collects the remainder and keeps a percentage. These may appeal if you’re dealing with slow-to-pay clients. But since this is a high-risk type of loan open to business owners with bad credit, rates can be high.

Merchant cash advances give you quick access to funds to cover shortfalls or buy inventory. You repay the loan through a percentage of your future sales. They’re useful for immediate needs but often come at a high cost and cut into your future cash flow.

Long-term loans have repayment terms of three years or longer. While you likely pay more in interest over time, the monthly payments can be easier to manage compared to short-term loans. Banks and credit unions typically offer the best rates, while online lenders have more relaxed eligibility requirements and typically offer funds within 24 hours.

While typically a short-term type of business loan, lines of credit can also be long term. For example, Wells Fargo offers a Small Business Advantage line of credit with a five year revolving term. It also offers a BusinessLine line of credit, which is also revolving but with no end timeline.

Business credit cards are similar to business lines of credit. You use money as you need it rather than receiving it in a lump sum. Business credit cards may also earn rewards and have grace periods that can save you from having to pay interest as long as you consistently pay your balance in full each month. Once you’re approved for a business credit card, you’ll usually receive it in the mail within a week or two.

SBA loans are backed by the U.S. Small Business Administration. They’re usually the slowest to provide funds. But what they lack in speed, SBA loans make up for in reasonable interest rates and accessibility to underserved communities. You could also apply for an SBA Express loan of $500,000 or less. These loans don’t need direct SBA approval, so the loan can process more quickly than other SBA loans.

Most short-term business loans don’t have many restrictions on how you can use the loan. Short-term loans work well to cover small expenses or emergencies like inventory purchases that you’re confident you can repay quickly. They may also work well for startup businesses that need an infusion of cash to get the business going. Short-term loans tend to have lenient requirements for approval compared to other loans. 

The time to receive funds for a short-term business loan depends on the type of lender you use. Online lenders make applying for a short-term loan as efficient as possible, often funding within 24 to 48 hours. Traditional banks can take several days or weeks to fund the loan, but you get to work one-on-one with a bank representative. This helps you get the funding you need while building an important business relationship that could help you secure future loans.

Access to small business funding is a challenge for many business owners. Rate hikes and bank turmoil have led to lenders tightening credit standards and eligibility requirements. This can make it difficult for startups, bad-credit borrowers and business owners in underserved areas to get approved for small business loans. 

Our experts consider several factors in this category and award higher scores to lenders that offer flexible loan amounts, fast approval and funding and inclusive time in business and annual revenue requirements.

The affordability of a business loan often depends on a business owner's financial profile. A business with high revenue and a flexible budget will likely be able to afford most loan options. Businesses considered high risk, such as startups or those with bad credit, may struggle to find loans with affordable interest rates and reasonable fees. 

We consider a business loan affordable if the payments are manageable, you have the lowest possible rate based on your creditworthiness and there are minimal fees. Lenders that have lower rates, offer rate or fee discounts and have minimal fees receive higher scores. 

A good customer experience requires a lender to be transparent, efficient and responsive. Reputable lenders that value their customers are easy to communicate with, responsive to your questions and concerns and willing to go the extra mile to make sure you have a positive experience for the life of the loan.

Lenders offering online accounts and applications and a range of customer support availability score higher in this category. 

While the Truth in Lending Act (TILA) protects consumers against unfair or harmful lending practices, it doesn’t apply to business loans. This can make it harder to get straightforward and upfront information on loan costs when comparison shopping. We score lenders that make it easy to find rates and fees, as well as eligibility and credit score requirements, higher than those who do not disclose information.

Loan flexibility is finding a loan to meet your needs, even if you don’t have high annual revenue, several years in business or the best credit score. Loan flexibility can look like lenders that offer multiple lending products, variety in loan terms or unique options to give business owners the opportunity to fund their businesses in a way that works for them.

Lenders scoring high in this category offer varied products and services to cater to all types of borrowers and businesses.