Commonly available through online lenders, short-term loans are ideal for cash flow gaps, emergency expenses, working capital and more
Short-term business loans offer financing with a quick payment turnaround – typically three to 18 months. If you’re seeking fast financing and can repay it quickly, short-term loans may be the right choice. We’ve compiled a list of lenders to help you secure the best short-term loans for your background and qualifications.
Best short-term business loans
Whether you need a short-term loan to expand your business or buy a piece of equipment, choosing the right lender is key. To be included on our list of best short-term business loans, lenders needed to meet the following criteria:
- Loans available from $5,000 to $500,000.
- No more than two years in business required.
- Minimum repayment terms between three months and one year.
Offering loans from $5,000 to $250,000, OnDeck may be a good option for business owners with small or medium financing needs. Terms can range from 3 to 24 months with APRs starting at 35% (% is the average rate). OnDeck charges an origination fee of up to 5% of the loan amount.
- One year in business
- $50,000 in annual revenue
- 600 minimum credit score
Depending on your state, you e day after approval for loans up to $100,000. The loan would need to be repaid in either daily or weekly installments. Business owners that qualify for the Prepayment Benefit option do not incur any fees or penalties for paying off their loans early. OnDeck does not extend financing to borrowers within Nevada, North Dakota or South Dakota.
For credit scores as low as 500: Credibly
Credibly working capital loans are available in amounts of $5,000 to $400,000 with terms from 6 to 18 months. With a 500 minimum credit score requirement, Credibly can be suitable for low-credit applicants. Credibly charges a factor rate instead of an interest rate – the cost is calculated by multiplying the factor rate by your total loan amount. Factor rates start at 1.15 and can rise to 1.45 and higher. An origination fee of 2.5% of the total loan amount would also apply if you get approved.
- 6 months in business
- 500 minimum credit score
It typically takes one business day after approval to receive the funding. Repayment would follow either a daily or weekly repayment schedule.
For larger loans up to $500,000: Funding Circle
Offering the highest amount on our list, business owners can secure $5,000 to $500,000 with Funding Circle’s business term loan. Short-term loan interest rates from Funding Circle can range from % – % with repayment terms ranging from 3 months to 60 months.
Funding Circle collects an origination fee of 3.49% to 6.99% of the loan amount and may require collateral and a personal guarantee from the primary business owners. Eligibility requirements include:
Funding Circle does not post minimum revenue requirements but does state the average of borrowers they accept do $1.4 million in annual sales. It typically takes one to three business days after approval to receive funding. Business owners can choose to make weekly, biweekly or monthly installments and will not incur any prepayment penalties for repaying the online installment loans Kansas loan early. Funding Circle business term loans are not available to Nevada-based businesses or certain industries, such as casinos or speculative real estate.
For established business: Credibility Capital
Credibility Capital offers loan amounts of $50,000 to $350,000. Terms can range from 1 – 4 years with interest rates spanning 6.99% – %. Business owners with 25% ownership in the business must sign a personal guarantee, a provision that means you are personally liable for repaying the loan. Also, Credibility Capital secures the loan with a blanket Uniform Commercial Code – you would not be able to use the same assets for other types of financing (until you repay the full loan amount). The origination fee can range from 4% to 6%. To qualify for a Credibility Capital loan, business owners should meet the following requirements: