Fast business loans are short-term financing options that make funds available in one to three business days. They’re best for businesses needing short-term working capital for payroll, inventory, and expenses. We compared the top providers according to their terms, costs, and qualifications and chose the top seven options for fast business loans.
- Lendio: Best overall platform for applying for fast business loans
- Fundbox: Best for newer businesses
- BlueVine: Best for invoice factoring
- Credibility Capital: Best for competitive interest rates
- SBG Funding: Best for business owners with lower credit
- National Funding: Best for larger loans
- OnDeck: Best for fast approval on lines of credit
Lendio: Best Overall Platform
Why we like Lendio: The ability to shop around and find the best loan rates and terms is attractive for those business owners that have the flexibility and time to find the best possible offer. Lendio’s ability to connect businesses to more than 70 different lenders is a strong selling point.
Fundbox: Best for Newer Businesses
Why we like Fundbox: For newer businesses, Fundbox’s easier qualifications will come in handy. With a minimum credit score requirement of 600 and a minimum length of business operations of six months, Fundbox provides a lower barrier to access needed funds.
BlueVine: Best for Invoice Factoring
Why we like BlueVine: BlueVine’s approval time on invoice factor loan applications is typically in a matter of hours. Once approved, getting funds put into your bank account often occurs on the same business day. Its convenience in funding will help businesses who need money fast and cannot afford to shop around.
Credibility Capital: Best for Competitive Interest Rates
Why we like Credibility Capital: Credibility Capital’s loan products are best suited for business owners with good credit and businesses that have been in business for at least two years. Should you meet those criteria, Credibility Capital’s interest rate and favorable repayment terms are very attractive options when looking for a loan.
SBG Funding: Best for Business Owners With Lower Credit
Why We Like SBG Funding: SBG Funding only requires a minimum credit score of 500 and that the business has been in operation for at least six months. If a business owner with a lower credit score needs a loan, SBG is an option to look into.
National Funding: Best for Larger Loans
Why we like National Funding: National Funding can provide up to $500,000 in working capital, which provides business owners seeking higher levels of financing a competitive option.
OnDeck: Best for Fast Approval on Lines of Credit
Why we like OnDeck: Businesses that need a line of credit quickly can look to OnDeck. It can approve an application and fund the business within the same business day.
Types of Fast Business Loans
When applying for a loan, it is important to know what type of loan you are applying for since the process can be time-consuming. Knowing what options are available to you and also the best uses for loans can help streamline the process.
The types of business loans available to small business owners quickly include:
- Short-term business loan: This type of loan is a lump-sum advance of funds, repaid over terms up to three years. This loan is best suited to finance equipment or renovations.
- Business line of credit: This type of financing is a revolving credit line for ongoing expenses. A line of credit works best for cash flow management.
- Invoice financing: Financing made on partial advances of outstanding invoices. Invoice financing works for a short-term cash flow infusion.
Although online lenders offer these small business loans quickly, these loans also have some drawbacks. Repayment terms are usually less than a year, with frequent payments, and loan sizes are small. However, the largest drawback is the cost. Fast business loans have an extensive APR range, typically from 10% to 150%, so business owners that have good personal credit and don’t face an urgent financing need should consider a traditional lender first.
How We Evaluated the Best Fast Business Loans
We focused on alternative lenders when evaluating potential candidates for this list as their approval and funding times are typically within a few business days. In addition, other criteria we used include costs, terms, and qualifications like credit score and time in business.
Upon consideration of those factors, we chose Lendio as the best overall fast business loan provider. In addition, Lendio’s ability to provide access to several lenders gives small business owners the power to shop around for the best decision on short-term and fast financing.
Bottom Line
Businesses that need loans quickly have a number of options available to them. Most fast business loans are similar in application time and funding speed but vary in terms, minimum qualifications, and rates. Any of the seven options in this article will provide an array of choices to a business owner who needs short-term working capital in quick order.
