Best Short-term Business Loans – 7 Recommendations for 2020
Every business requires capital to grow. Sometimes a business loan is necessary to expand. However, sometimes, you do not need a massive influx of money, just a small infusion of cash can help you attain one-off projects or help you cover your emergencies when they pop up. When that is the case, short-term loans are usually your best bet. Short term business loans give you a lump sum of money, repaid over a short time (usually three to eighteen months) with fixed, regular payments. We will break all the famous short-term financing companies out there, so you know the ones that fit your business funding needs.
OnDeck Capital: Popular for repeat borrowing
OnDeck provides short-term loans and lines of credit. They are known as an established lender providing fast short term business loans as large as $250,000. Like most short term financing companies, OnDeck terms last from three to twenty-four months. Rates can range from 8.5 to 79 percent. It is vital to note that OnDeck has an origination fee for their short term business loans. The first time you get a short term loan with OnDeck, you will have an origination fee of 2.5 percent. Your second loan will have an origination charge of 1.25 percent, and all loans after that will not come with an origination fee.
Borrowers that require fast access to money for their business will benefit from their one-page application’s ease and speed. Thanks to such an easy application, you can get the financing you need very fast. To apply for a loan with OnDeck, you will only require a voided business check, three months of business bank statements, and a copy of your driver’s license. Once you have applied for the loan, and the application has been processed, you will get the cash in your bank account within 24 hours of your application.
BlueVine: Popular for larger cash flow loans
BVlueVine is a desirable short term lender to work with if you are looking for various types of funding. Through BlueVine, you can obtain invoice financing, short-term credit line, or a short-term loan. With a line of credit or term loan from BlueVine, you can acquire loans between $5,000 and $250,000 in terms of up to one year. Their invoice financing product can advance you up to $5 million on terms between obe and thirteen weeks. BlueVine charges interest rates between 4.8 and 51 percent.
Your business will require a 530 minimum credit score, three months of business history on the books, and $120,000 in annual revenues. A credit line or a short-term loan requires a minimum credit score of 600, six months of business history, and $100,000 in annual revenues. BlueVine will overlook if your business has had no history of bankruptcy, and there is no minimum bank balance requirement. Funding can be acquired in as little as two days of business.
Fundbox: Popular for low credit
If you require a short term line of credit, your best choice is Fundbox. With this short-term lender, you can attain between $1,000 and $100,000 in a revolving line of credit on terms between twelve and twenty-four weeks. Interest rates on the Fundbox business line of credit items begin at 4.66-percent for a twelve-week repayment plan. Changed into a weekly rate, you will end up paying o.5 to 0.9 percent of the drawn amount weekly.
You can also acquire invoice factoring from Fundbox, outside of lines of credit. This loan product has the same terms. The loan application process for Fundbox is one of the most appealing features of this service. Simply link your business bank account to their system to apply for the loan. Fundbox will then assess your financial history and will either accept or deny you within minutes. You will need a minimum of 500 credit score, at least three months of business history on the books, and $25,000 in annual revenue to qualify for the loan. If accepted, you can receive your funds in as little as one day. Repayments will be drawn every day from your business bank account, without you having to do anything.
CAN Capital: Popular for start-up and new businesses
CAN Capital is another big player among the non-bank short-term loan lenders. It is one of the oldest alternative lenders in small business lending. There is certainly a level of trust that comes with such an experienced lender in a comparatively new industry. CAN Capital provides both term loans and short term loans. The short term loan has terms of three to twenty-four months in length and is repaid through small, fixed every day repayments from the business checking account. CAN Capital price is quoted as a factor rate, ranging from 1.15 to 1.48. The median rate for short term loans is 1.22.
When it comes to short term loans, CAN Capital is one of the most straightforward lenders to qualify for. They set their qualifications at the following: a minimum credit score of 550, been in operation for at least six years, $4,500 per month in annual revenue, and a minimum of three months in the industry showing revenue. Moreover, they process short-term loan applications faster, with funds in your bank account after six days on average. Brand new companies and smaller startups have a tough time finding capital to expand their businesses. Most lenders simply do not want to work with companies until they have established and proven themselves. Even the available short term financing companies avoid working with businesses with less than six to twelve months under their belt. However, CAN Capital is a notable exception. CAN works with small business owners with only three months in business, as far as those three months have brought in consistent revenue.
StreetShares: Popular for the balance of requirements and rates
StreetShares does not have the lowest requirements or best rates out there; however, it might have the best combination of the two. StreetShares requirements include a fair credit score and $25,000 in revenue; however it allows you to qualify for rates as low as seven-percent- almost as good as what you can acquire from some traditional banks ( note that the stronger your application, the better the rates you can expect actually to get). So if you need to try lower rates, despite not having a ten-year-old, $1 million revenue business, consider StreetShares.
ForwardLine: Popular for low-interest rates
ForwardLine offers short term loans that work well as working capital loans. Loan amounts range from $5,000 to $150,000, with terms between six and fifteen months. Rates are comparatively affordable, ranging from 14.50 to 26.50 percent. They are able to remain inexpensive since they will not work with middlemen, business loan brokers, or referrals that will trace onto the cost of your business loan.
Like other short term financing companies, ForwardLine depends on its ForSight algorithm and technology to do most of the work for the application process. In the end, you will spend much less time on ForwardLine applications than you would with other online lenders and mainly traditional funding institutions. Moreover, ForwardLine looks at more than just your business assets and credit score when underwriting your loan. They take a more holistic look at all the data out there to evaluate if your business is stable (and has been stable) and will be strong enough to pay them back in the future. As a result of this, ForwardLine is an especially good option for businesses that do not qualify traditionally without collateral to provide or strong business financials.
ForwardLine provides particularly low-interest rates for business owners looking for short term loans. If you can get a rate quoted on the lower end of their interest rate scale (between 14.50 and 26.50 percent), you may have a harder time getting a lower rate with different short term loan lenders out there. They will also work with borrowers with poor credit, setting a minimum credit score of 540.
SmartBiz: Popular for SBA loans
If you are only interested in SBA loans, then consider trying SmartBiz. They claim to simplify the SBA application process with its loan marketplace. SmartBiz delivers your one application to many lenders, matching you with your best options. However, unlike other lending marketplaces, SmartBiz deals exclusively with SBA loans. That makes its loan application stiffer; however, it also means you can get super low rates.
If your business meets the requirements for SBA loans, use SmartBiz to streamline your application process. Generally, the most popular short term financing company for you is the most affordable lender that gets your company financing needs to be achieved. However, there are so many different short term loan lenders on the market; you will have to shop around to compare the offers. Eventually, you should be working with a trustworthy financing company that provides the lowest cost of capital while meeting your funding needs at the same time.