Find the Best Short-Term Loan Lender for Your Small Business

If you’re a small business owner looking for an infusion of cash to help you achieve a one-off project or help you recover from an unforeseen emergency, then a short-term business loan may be your best bet. Short-term loans give you a lump sum of capital typically repaid over a period of two years or less, with fixed, regular payments.

Below, we’ll dive into detail on the best short-term lenders you can turn to for a small business loan. And if you’re interested in finding out which ones you qualify for, we can help match you with your top options.

Altbanq is an online lender that offers short-term loans in large amounts, ranging from $10,000 to $10 million, with terms up to two years in length. This lender offers some flexibility when it comes to repayment schedules: You can choose a weekly, biweekly, or monthly payment cadence.

As with many other short-term loan lenders, Altbanq can approve your loan within one business day and may be able to fund your account the same day of approval. 

Altbanq does charge an origination fee of 2% of the total loan amount, and APRs range from 0% to 44%.

To qualify for an online business loan from Altbanq, you’ll need a FICO score of 650, at least one year of established business history, and $100,000 or more in annual revenue.

Backd is an alternative lender offering short-term business lines of credit from $10,000 to $750,000. A Backd line of credit comes with either six- or 12-month terms and weekly payments.

You may get approved the same day you apply, and once approved, you’re likely to receive funds within 24 hours.

While Backd doesn’t charge an origination fee, you will pay a fee, called a draw fee, of 3% each time you withdraw from your line of credit. APRs, inclusive of the draw fee, range between around 42% and 63%.

You can qualify for a Backd line of credit with a fairly low credit score of 600, but you’ll need a rather large annual revenue of $300,000 and at least a year in business.

Fundation offers both short-term loans and lines of credit. This lender’s line of credit ranges from $10,000 to $150,000 with terms up to two years and monthly payments. The term loan is offered in amounts from $10,000 to $500,000. Terms range from one to four years, and payments are made on a semimonthly basis.

Unlike many of the other short-term loan lenders on this list, Fundation takes a bit more time to approve and fund a small business—although still faster than a bank lender. Pre-approval typically takes a few days, and funding can take up to five days.

You’ll also need a considerably higher personal credit score to qualify, 680 for the line of credit and 660 for the term loan. For the annual revenue requirement, however, you only need to show a minimum of $50,000. A final caveat for Fundation is that the lender only serves small businesses and sole proprietors in a limited number of states.

Headway Capital’s short-term line of credit is available up to $100,000 with terms of one to two years. You can repay the loan on a weekly or a monthly basis.

Headway is another short-term lender offering swift approval and funding. Pre-approval can happen in minutes, the lender states, and your account can be funded as soon as the next business day following approval.

This lender may be attractive to newer businesses as qualification requirements include only six months in business, a credit score of 625, and a minimum annual revenue of $50,000.

iBusiness Funding acquired Funding Circle’s U.S. short-term loan portfolio in 2024. It offers term loans from $25,000 to $500,000 with terms from six months to seven years and payments made monthly.

Approval can happen within 48 hours, and your account can see the funds in as fast as one business day.

You’ll need a minimum FICO score of 660, at least two years in business, and annual revenue of $50,000 or more to qualify.

iBusiness Funding stands apart from most other online lenders in that it also offers highly sought-after SBA loans (and requires a credit score of 640 for those, compared with the higher threshold of many other SBA lenders).

OnDeck offers lines of credit and short-term loans. OnDeck’s line of credit maxes out at $100,000 and has terms of 12, 18 or 24 months with a weekly or monthly repayment schedule. 

OnDeck’s short-term loan is available up to $250,000, and comes with 18- or 24-month terms along with daily or weekly payments. It’s important to note that OnDeck charges an origination fee of 0% to 4% on its short-term loans. 

Currently, the APR for either loan option averages around 56%, though the range can vary as widely as 27% to 99%. 

Borrowers that need a quick business loan will benefit from the ease and speed of OnDeck’s online application, which the lender states only takes about 10 minutes to complete. To apply with OnDeck, you’ll only need your three most recent business bank statements, a business tax ID and SSN. After your loan application with OnDeck is processed, you can get the funds in your bank account as soon as the same day you apply.

To qualify for an OnDeck business loan, you’ll need a personal credit score of 625 or higher, a minimum of one year in business, and at least $100,000 in annual revenue.

If you need a short-term loan of significant value, Rapid Finance offers small business loans of $5,0001 to $1 million. Terms range anywhere from three months to five years, and fixed payments are made daily, weekly, or monthly.

Like many other short-term lenders, Rapid Finance has a fast online application requiring only a few items from you: valid ID, business bank account number, and your last few months of bank statements. If approved, you may be able to receive funds the same day.

To qualify for funding from Rapid Finance, you’ll need to have a credit score of at least 550, two years of business history, and at least $120,000 in annual revenue.

Click below to see if you qualify for a short-term loan.