Getting a business loan can take as long as a few months, even if you have stellar credit. But if you need cash now and are willing to pay a little extra for it, there are plenty of options available.
Business lenders that offer quick cash tend to be online only, and many of them offer loans to business owners with good and bad credit alike. As you compare our top options, make sure you consider their costs in interest and fees, repayment terms, and funding time.
Fundbox doesn’t offer business loans per se, but they do provide a line of credit and invoice financing. With a Fundbox line of credit, you can borrow between $1,000 and $100,000 with a repayment schedule of up to 12 weeks.
Once you’re approved, you could get the funds as early as the next business day. Depending on your creditworthiness and loan terms, the APR can range from 10.1% to 68.7%, including interest and fees.
To qualify for a line of credit with Fundbox, you’ll typically need to be in business for at least three months with $25,000 or more in annual revenue. That said, there’s no minimum credit score requirement, making it an excellent choice for business owners with bad credit.
If you’re looking for invoice financing, you can qualify for 100% of the invoices used to secure the loan, between $1,000 and $100,000. Like the lender’s line of credit, you’ll have up to 12 weeks to repay the debt, and you’ll receive the money as fast as one business day. The APR can range from 13.44% to 67.70% APR.
To qualify, you’ll need to be in business for at least three months with accounting software data for that amount of time. You also can’t have a bankruptcy or major liens on your credit report.
If you’re looking for a term loan, you can get one with OnDeck in as little as one day after approval. The lender offers loans of $5,000 to $500,000 with repayment terms ranging from three to 36 months.
The annual interest rate (AIR), which excludes the loan’s origination fee, averages 48.7% but can be as low as 9.99%. The origination fee is 2.5% to 4% for your first loan, 1.25% to 3% for your second, and 0% to 3% after that.
While the lender’s minimum credit score is just 500, its business requirements are more stringent. To qualify, you’ll need to be in business for at least a year with $100,000 or more in annual revenue. You’ll also need a stable checking account balance with frequent transactions.
One thing to note before applying is that OnDeck requires daily or monthly payments. The lender will automatically deduct from your business checking account.
StreetShares offers small business owners term loans, lines of credit, and government contract financing. With its term loan, you can borrow between $2,000 and $250,000 and pay it back weekly over three to 36 months. Keep in mind, though, that the maximum you can borrow is 20% of your company’s annual revenue.
Once you accept the loan, you’ll be charged an origination fee of 3.95% to 4.95%. After that, you’ll typically receive the funds within a week. The APR can range from 8% to 35% or higher, based on your loan terms and creditworthiness.
To qualify for a StreetShares business loan, you’ll need to be in business for at least one year and meet certain minimum revenue requirements. There’s also a minimum credit score requirement of 600.
LendingClub is a marketplace lender that works a little differently than most business lenders. Instead of providing the loan funds itself, it matches small business borrowers with individual investors who fund the loan amount.
While LendingClub is more well known for its personal loans, its business loans fund in as little as a few days. You can borrow between $5,000 and $300,000, and repayment terms range from one to five years.
The lender’s APRs range from 9.77% to 35.71%, which includes an origination fee of 1.99% to 8.99%. To qualify, you typically need a credit score of 600 or higher. However, a bankruptcy or tax lien would result in an automatic denial.
You’ll also need longer than a year in business, and a minimum of $50,000 in annual revenue to get approved.
Like FundBox, Kabbage offers a line of credit, which ranges from $2,000 to $250,000. You can get approved within 10 minutes after applying and use your funds as soon as the same day.
Depending on your loan terms, you’ll have six or 12 months to repay what you owe. The loan has a monthly fee you’ll pay with each payment, which can range from 1.5% to 10%. As a result, Kabbage’s APRs can range as high as 90%, making it one of the more expensive business financing options on the market.
To get approved for a Kabbage line of credit, you’ll need to be in business for at least one year. However, the lender is flexible with revenue, asking for at least $50,000 annually or $4,200 per month over the last three months. The lender doesn’t disclose its minimum credit score requirement, but most Kabbage reviews recommend having a credit score of 560 or higher.
How to pick the best loan for your business
If you’ve been in business for a while, and have solid revenue numbers and decent credit, you shouldn’t have too many problems getting fast financing. These and other online lenders have streamlined the process enough to get you funding when you need it.
For that convenience, however, you’ll typically pay more in interest than you would with a traditional business loan. As a result, it’s essential that you take the time to compare each of these loan options to determine how much they’ll cost you.
In addition to interest rates and fees, it’s also important to consider how long you’ll have to pay back the debt. If the repayment term is too short, you may default or be forced to take out another loan to cover this one. If you’re not careful, that kind of debt reshuffling could cause significant long-term problems for your business.To get an idea of what’s available, sign up for a Nav account and view loan offers based on your credit score and business situation. From there, you can determine which loan best suits your company’s needs.
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