Best Short-Term Business Loans

We chose Kabbage as our top option for business owners because of its quick turnaround time for both approval and funding, as well as its flexible loan options.

Kabbage is an online bank that offers finance tools that small business owners need, such as checking accounts, invoicing, and loans. Kabbage loans don't charge an application fee, origination fee, or any other hidden fees—a major reason why it's one of the best overall. Loan costs can vary depending on the type of loan you choose, loan amounts, and repayment terms. For example, you can get a short-term business line of credit worth up to $150,000.

This lender charges a monthly fee structured as a percentage of your balance, which means the faster you pay down your debt, the less you’ll pay. No prepayment penalties exist with Kabbage.

There are some minimum requirements to qualify for short-term financing. For starters, your business must be at least one year old. You’ll also need a certain amount in annual revenue. As a result, it may not be a good fit for brand-new businesses that aren't yet generating revenues.

Kabbage will run a personal credit check on the primary person applying for the loan but doesn’t specify a minimum credit score requirement. Funding into a bank account can take up to three days.

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Fundbox is far from the only lender that offers lines of credit, but its short-term options come with fast funding, no collateral, transparent pricing, and low credit score requirements.

Fundbox offers business term loans and lines of credit. Its short-term lines of credit are for up to $150,000 with repayment terms being either 12 or 24 weeks with flexible eligibility requirements, making it the best for lines of credit.

Instead of charging traditional monthly interest, the lender assesses a fee, which is included in your payment at the same time each week through a direct link to your accounting software and bank accounts. Fees are only payable when you have drawn on the line of credit.

Business owners can get up to $150,000 in a line of credit to access as needed. The Fundbox website lists a few requirements for approval. They are not too stringent. You must have a business checking account, have been in business for six months or more, be able to share records of your business activity, be based in the United States or its territories, and have a credit score of 600 or higher, and have at least $100,000 in annual revenue.

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Getting approved for any type of business loan can be difficult if your credit isn’t in good shape. SnapCap stands out by offering short-term business loans with a minimum credit score requirement of just 500.

SnapCap is a LendingTree company offering loans such as for equipment financing, inventory loans, and expansion capital. The primary reason we chose SnapCap as the best for bad credit is because of its rock-bottom 500 credit score requirement. That said, you’ll need at least $100,000 in annual revenue and must be in business for at least one year to get approved.

The interest rate on a SnapCap loan can vary based on a number of factors, including your recent business performance, industry, loan term, and loan amount. Once you’re approved for a loan, which can happen on the same day you apply, you can expect to receive your funds within 48 hours. Repayment terms are anywhere from three months to three years and are done via ACH withdrawals from your business bank account either daily or weekly.

The application process takes just a few minutes and utilizes a simple questionnaire. Loans are available for any type of business entity including sole proprietors, corporations, and partnerships. Use loan proceeds for various business needs including equipment financing, payroll, location remodeling, invoice factoring, and more.

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Accion is an international nonprofit organization that specializes in providing funding for startups. The revenue requirement is one of the lowest around, making it easier for young businesses to get a loan.

We chose Accion, founded in 1961, for the best short-term business loan for startups because this non-profit organization has much lower revenue requirements than traditional lenders, making it easier for startups to get funding.

Of course, that doesn’t mean there are no eligibility requirements. You must have at least $50,000 in annual sales and one year in business. Also, you must be 18 or older and own a certain percentage of the business. Loan terms are from 12 months to five years and range from $5,000 to $100,000.

You may also be asked to show business records of your revenue and expenses as well as tax returns.

As a nonprofit, Accion serves as more than just a lender. Its staff is knowledgeable about new business needs and will help founders throughout the life of the loan. Help includes referrals to banks, local organizations, and peer networks. This is an added edge Accion customers get that helps set them up for success with a new venture.

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Getting an affordable short-term business loan can be challenging, but Credibility Capital offers rates starting at just 6.99% where other lenders are charging 10% or more.

Credibility Capital was founded in 2013 and offers loans ranging from $50,000 to $500,000, which you can pay back over one to five years. One of the drawbacks to consider is that the lender charges a one-time origination fee, which ranges from 4% to 6% of the loan amount. 

Because Credibility Capital’s strength is in its low-interest rates, it has higher eligibility requirements than other short-term business lenders. For starters, you must have been in business for at least 24 months, be generating revenue, and have a strong personal credit history, though the lender doesn’t disclose a minimum score. Additionally, business owners must be a U.S. citizen with no commercial or personal bankruptcies within the past five years.

Loans are not available in Nevada, North Dakota, South Dakota, or Vermont. If you want an unsecured loan option, this lender isn’t for you. However, by completing an application, Credibility Capital will work with partner lenders for products it doesn't offer that may be what your business needs.

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Funding for small business loans is getting faster, and many of the lenders on our list will get you your money within a day or two. With OnDeck, though, you could get the funds on the same day your application is approved.

OnDeck has been providing small business loans since 2006 and has extended more than $13 billion in credit over the years. It offers term loans and lines of credit.

One of OnDeck’s strongest features is its same-day funding, which is why it wins the category for quick funding. If you’re borrowing up to $100,000, complete the process by 10:30 a.m., and live in an eligible state, you can receive your funds by 5 p.m. on the day you get approved. Unfortunately, you won’t be able to get that benefit if you borrow more than that; the lender offers loans ranging from $5,000 to $250,000. 

OnDeck charges an upfront origination fee, though the lender may reduce or eliminate that fee on subsequent loans if you’re eligible. Repayment terms range up to 24 months. To be eligible for a loan or line of credit, you must have been in business for at least one year, have a FICO score of 625 or better, and have at least $100,000 in annual revenue.

If you don’t qualify for OnDeck’s Prepayment Benefit and you pay off your loan early, you’ll be charged a prepayment penalty. Payments are automatically withdrawn from your bank account either daily or weekly.