Short-term business loans provide quick access to funds to help manage immediate financial needs such as cash flow interruptions, emergency expenses, or working capital. These loans typically have repayment terms ranging from a few months to two years and are available from various lenders, including online platforms, banks, and credit unions.
Top Short-Term Business Loans for Small Businesses
Bluevine: Best for Fast Funding Bluevine offers a revolving line of credit with amounts up to $250,000 and terms of 6 or 12 months. It’s known for its fast application process, with funding available as soon as the same day. Businesses need a minimum credit score of 625 and $40,000 in monthly revenue. Bluevine is ideal for established businesses needing quick access to capital.
OnDeck: Best for Working Capital OnDeck provides both term loans and lines of credit with amounts up to $250,000. It requires a minimum credit score of 625 and annual revenue of $100,000. OnDeck’s streamlined application and same-day funding make it a top choice for businesses needing working capital to manage day-to-day operations.
Fundbox: Best for Startups Fundbox offers short-term lines of credit up to $150,000, with terms of 12 or 24 weeks. Fundbox’s flexible eligibility criteria, including a minimum credit score of 600 and $100,000 in annual revenue, make it an excellent option for startups needing quick funds for growth and operational needs.
Fora Financial: Best for Bad Credit Fora Financial specializes in providing loans to businesses with bad credit. It offers amounts up to $1.5 million with terms ranging from 4 to 18 months. The minimum credit score required is 570, and businesses need at least $180,000 in annual revenue. Fora Financial’s high borrowing limits and lenient credit requirements make it suitable for businesses needing substantial funds despite a poor credit history.
Kabbage: Best for Flexibility Kabbage offers lines of credit up to $250,000 with flexible repayment options. The application process is quick, and funds can be available within a few days. Kabbage does not have a minimum credit score requirement, making it accessible to a wide range of businesses. This flexibility makes Kabbage ideal for businesses with fluctuating financial needs.
Factors to Consider When Choosing a Short-Term Loan
When selecting a short-term business loan, consider the following factors:
- Interest Rates: Compare APRs to find the most affordable option.
- Repayment Terms: Ensure the repayment schedule aligns with your cash flow.
- Eligibility Requirements: Check credit score and revenue requirements to find a suitable lender.
- Funding Speed: Consider how quickly you need the funds.
- Fees and Charges: Be aware of any origination fees, late payment fees, and other charges.
How to Apply for a Short-Term Business Loan
Applying for a short-term business loan typically involves the following steps:
- Research Lenders: Compare different lenders to find the best terms and rates.
- Prepare Documentation: Gather necessary documents such as financial statements, tax returns, and business plans.
- Complete Application: Fill out the application form online or in-person, providing accurate and detailed information.
- Await Approval: Lenders will review your application and creditworthiness.
- Receive Funds: Upon approval, funds are typically disbursed within a few days.
Conclusion
Short-term business loans are a valuable financial tool for small businesses needing quick access to funds. By understanding the options available and considering factors like interest rates and repayment terms, you can choose the best loan to support your business’s growth and stability.
