When your ecommerce runs dead silent for most of the year, only for demand to shoot through the roof during the holidays, it can be a pain to keep up with the sudden need for cash.
Or what if you have a handful of huge clients slow on paying their invoices – how are you supposed to keep the lights on?
When the need for cash is dire, short term business loans can be your saving grace.
In this article, I’ve outlined the seven providers of the best short term business loans out there.
9 Providers of The Best Short Term Business Loans – Overview
- OnDeck
- American Express Business Blueprint
- BlueVine
- Funding Circle
- Lendio
- Fundbox
- Credibly
- QuickBooks Capital
- National Funding
Let’s dive in further.
OnDeck: Best For Building Credit Score
- Annual revenue needed: $100K
- Credit score needed: 625
- Loan Amounts: $6K – $100K
OnDeck was founded in 2006 and based in New York, US. It was founded in 2006 and operates as a financial platform that provides loan financing to small and medium-sized businesses.
OnDeck has established itself as a go-to solution for short term business loans, and it’s easy to see why. They have a wide range of financial solutions available for all sorts of business needs, and they operate with speed and efficiency.
Starting from their fast funding capability. They can provide businesses with quick access to capital through just a 10-minute application process. Once approved, the funds can be in a business’s account as soon as the same day.
There’s no lack of trust either. Having delivered over $15 Billion to US businesses, OnDeck boasts an A+ Rating with the Better Business Bureau.
More Than Short Term Business Loans
OnDeck is not just about short term business loans either. They also offer a line of credit, meaning a revolving fund that replenishes as businesses repay.
This flexibility is ideal for businesses with ongoing financial needs, with credit limits ranging between $6K to $100K.
OnDeck is committed to transparency on one hand, and supporting your business on the other. For example, businesses can check their eligibility without a hard credit pull, ensuring their credit score remains unaffected.
Timely payments are reported to credit bureaus, meaning businesses can build their credit history when repaying the business loan. This focus on credit-building is a testament to OnDeck’s dedication to the long term success of its clients.
To qualify for short term business loans, businesses need to have been operational for at least a year, possess a personal credit score of 625, report an annual revenue of $100K, and maintain a business checking account.
American Express Business Blueprint: Best Loan Provider With Deep Pockets
- Annual revenue needed: $36K
- Credit score needed: 660
- Time in business needed: 1 year
- Loan Amounts: $2K – $250K
American Express Business Blueprint, was founded in 2009 as the Kabbage short term business loan.
When you sign up to the AMEX Business Blueprint, you’re actually signing up for the American Express Business Line of Credit. Through AMEX, you can get small business loan amounts ranging from $2K to $250K, catering to a wide range of needs.
Instead of traditional interest rates, the American Express Business Blueprint employs a unique fee structure based on the term of your loan. For instance, for a 6-month loan, the monthly fees range from 3% to 9%.
This structure ensures transparency, and businesses can be assured of no hidden costs, application fees, or origination charges.
In addition, the absence of a prepayment penalty provides businesses with the flexibility to repay their loan early without any additional charges.
Access to American Express Business Line of Credit
Eligibility for the American Express Business Line of Credit requires businesses to have a minimum FICO score of 660, be operational for at least a year, and demonstrate an average monthly revenue of at least $3,000.
The application process is streamlined. Small business owners only need to connect their checking account, bookkeeping software, or payment solution to the American Express Business Blueprint platform.
This data-driven approach allows them to evaluate a business’s eligibility efficiently.
One of the standout features is flexibility. Each time a business draws from its line of credit, a separate installment loan is issued, each with its own agreement. This structure allows businesses to manage their finances effectively, paying fees on each individual loan.
BlueVine: Best Tailored Loans for Small Businesses
- Annual revenue needed: $480K
- Credit score needed: 625
- Time in business needed: 2 year
- Loan Amounts: $5K – $250K
BlueVine is a California based short term business loan provider and was founded in 2013.
With a focus on transparency, flexibility, and customer support, BlueVine has carved a niche for itself, offering a range of financial products designed to meet the diverse needs of today’s businesses.
With BlueVine, expect a seamless user experience.
The online application process is not only user-friendly but also remarkably swift, allowing businesses to apply for financing in just a few minutes.
And for those in urgent need of funds? BlueVine delivers, with the potential for funds to be available as soon as the next business day.
Transparency and Diverse Loan Offerings
BlueVine offers a variety of financing solutions, from lines of credit to short term business loans and even invoice factoring. This diversity ensures that businesses can find a financial product that aligns with their specific needs.
Whether it’s a line of credit ranging from $5K to $250K or invoice factoring up to a whopping $5 million, BlueVine has got it covered.
Transparency is a hallmark of BlueVine’s services.
They are upfront about their pricing and loan terms, ensuring businesses are never in the dark about the cost of borrowing. This commitment to clarity extends to their fee structure, with a firm policy against hidden charges.
Behind the scenes, BlueVine’s dedicated customer support team ensures a smooth experience.
Funding Circle: Best SBA Loan P2P Business Lending Platform
- Credit score needed: 660
- Time in business needed: 2 year
- Loan Amounts: $5K – $500K
Funding Circle has its origins in the UK and has expanded its operations to other countries since being founded in 2010. It stands out as a pioneering peer-to-peer lending platform, bridging the gap between small businesses seeking financing and investors eager to support them.
With a global reach and a diverse range of loan offerings, Funding Circle has become the go-to online business loan marketplace for businesses looking for short term financing.
At the heart of Funding Circle’s operations is its commitment to simplicity and transparency.
The online application process is designed for efficiency, allowing businesses to apply for financing in just a few minutes.
And when it comes to costs?
Funding Circle is all about clarity, ensuring that businesses are well-informed with no hidden fees lurking in the shadows.
Pioneer of Peer-to-peer Lending
What truly sets Funding Circle apart is its peer-to-peer model for short term business loans.
Bypassing traditional banking structures, this model connects businesses directly with individual and institutional investors. This direct connection can often lead to more favorable loan terms and conditions, tailored to the unique needs of each business.
Funding Circle’s loan portfolio is as diverse as the businesses it serves.
From SBA 7(a) loans and term loans to merchant cash advances and invoice factoring, the platform caters to a wide range of financial needs. Short term business loans are available for amounts between $5K and $500K, but they also offer merchant cash advance loans ($5K-$400K) and working capital loans.
Support doesn’t end with loan approval.
Funding Circle assigns dedicated account managers to guide businesses through the lending process, ensuring a smooth and informed experience. A slew of positive reviews suggest that the platform is working and users are happy.
Lendio: Best User-Friendly P2P Business Lending Platform
- Credit score needed: 650
- Time in business needed: 2 year
- Loan Amounts: $5K – $750K
Lendio is a US-based short term business loan provider. It started as FundingUtah in 2006, and then by 2011, it was renamed Lendio.
Rather than being a direct lender, Lendio operates as a marketplace, similar to Funding Circle. They connect businesses with countless lenders, each offering a variety of loan products. This unique approach ensures that businesses have access to tailored financing solutions, optimized for their specific needs.
Lendio’s selection of short term business loans starting at a modest $5,000 and can stretch up to a substantial $750,000 to cater to a wide range of business needs.
And while short-term loans inherently come with higher interest rates due to their brief repayment periods, Lendio’s rates remain competitive, averaging between 8% and 13%.
These rates are typically fixed, offering businesses the predictability t