The Best Short-term Business Loan Providers Explained
Founded in 2008, Fora financial has handed out over $2 million in funding to over 25,000 small businesses. Fora Financial provides terms of 15 months, so you won’t have to pay extra fees. This lend also boasts fast funding, so if you need funding to chase a new opportunity you won’t need to wait long for your money.
- Working capital from $5K – $500K
- Terms up to 15 months
- Approval is not solely credit based
- You require $5,000 in monthly credit card sales to be eligible for Fora Financial's merchant cash advance
- It requires $12,000 in monthly sales
Fora Financial is a solid choice for short-term loans as the terms are capped at 15 months. Given this, you won’t need to incur interest over an extended period. With this lender, you can put your loan to use for any of your business requirements. Thus, there are no restrictions placed on how you use your money. Yet, Fora Financial does demand a credit score of more than 500.
Fora Financial makes it easy and clear to apply for a loan. It has a fast online application process and you only need to provide bank statements dating back 3 months. Read more in the full Fora Financial review.
Fundbox specializes in short-term loans with term limits set at either 24 or 52 weeks, making it an ideal choice for businesses that want to fund a project or need to cover an emergency situation.
- 24-hour turnaround on funding
- Those with poor credit are welcome
- No application, origination, or prepayment fees
- Interest rates aren’t disclosed before you apply
- Weekly payments could affect cash flow
Fundbox has carved out a successful niche with its flexible weekly payments and poor-credit-friendly loans. Many use the platform to improve their credit score before taking on other types of borrowing.
If you’ve been struggling to get a loan, or simply need funding to cover an emergency, there are few better platforms than Fundbox. The service is designed around giving small businesses a helping hand. Read more in the full Fundbox review.
As the name might suggest, Quick Loans Direct is a specialist in providing short-term funding to you quickly. Many applications can be approved and disbursed on the same day and there are no credit score requirements to apply.
- Fast funding
- Very generous borrowing limits up to $1 million
- Minimal credit requirements
- Repayment terms aren’t made clear before applying
- Startups can’t apply
Quick Loans Direct doesn’t use your credit score to determine your loan terms; instead, it assesses your business performance on the whole. This opens up applications to all small businesses, giving applicants access to rates as low as 7.00%
The platform’s primary selling point is a fast turnaround for funding. So, if you need cash within the next 24 hours, we’d highly recommend submitting an application. You’re under no obligation to accept any offers and your credit rating won’t take a hit for looking. Read more in the full Quick Loans Direct review.
Founded in 2013, Fundera has built a reputation as one of the most reliable platforms in the industry. It’s a loan marketplace, meaning you’ll be connected to multiple lenders, which is great for finding some diverse rates and terms.
- Excellent and well-established reputation
- High borrowing limits
- Low starting rates
- Tough eligibility criteria
- Some lenders may charge additional fees
While Fundera might have some pretty strict eligibility criteria, including a credit score requirement of 680 and annual revenue of $300,000 or more, it’s still one of the best services on the market. Rates start at a respectable 7.00% and terms extend to five years.
Fundera lets borrowers get the most out of short-term borrowing by giving them the time they need to repay their loans. If you have good credit, we’d recommend it as your first port of call so you can take advantage of some great rates. Read more in the full Fundera review.
OnDeck has made a name for itself as one of the most welcoming alternative lenders on the market. Applications are open to all small businesses and there are no special requirements to meet.
- All applications welcome
- Same day funding is available
- Discounts for early repayments
- High-interest rates
- Weekly or daily payments could hit your cash flow
OnDeck has quite high interest rates, starting at 35.00%. However, the more loans you take out with the platform, the lower this rate gets. Plus, since all applications are welcome, even those with no credit history, anyone can apply for funding.
This is definitely a provider that’s suited to those with limited and/or poor credit. We’d recommend using it if you have a small project to fund, or are looking to boost your credit score over the short term. Read more in the full OnDeck review.