Compare 3 Short Term Business Loans

BySarah PritzkerDec. 22, 2020

This site is a free online resource that strives to offer helpful content and comparison features to its visitors. Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented, and in some cases may also impact the rating that is assigned to them. To the extent that ratings appear on this site, such rating is determined by our subjective opinion and based on a methodology that aggregates our analysis of brand market share and reputation, each brand's conversion rates, compensation paid to us and general consumer interest. Company listings on this page DO NOT imply endorsement. We do not feature all providers on the market. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.

The best-short term business loans
A short term business loan can take a variety of forms. Generally, traditional short term business loans are term loans that need to be repaid within a few months or up to 3 years.

The Top Lenders at a Glance

Minimum Credit Score Visit Site
Lendio 580
View Rates
Rapid Finance 550
View Rates
OnDeck 600
View Rates

A merchant line of credit loan permits businesses to draw on a flexible credit line up to the maximum agreed upon amount but needs to be repaid within weeks rather than months. Accounts receivable loans give advances against outstanding unpaid invoices. A short term business loan is usually approved quickly, with funding coming in within a few days, and isn't secured against any particular assets.

On average, short term business loans carry between 7% to 30% APR each month. Repayment terms are usually between 3 and 36 months, although some can be as short as just a few weeks. Some short term business loans do come with early repayment charges. Short term business loans are good for businesses that need extra capital for a short period of time like to cover stock expansion ahead of a busy shopping season. They are also great for covering an unexpected shortfall, meeting emergencies, or taking advantage of a business opportunity when the business needs the funding in a hurry. However, since rates tend to be higher than long-term business loans they can be risky, so only take on a short term loan if you are sure that you can pay it off within the term.

What to Look for When Choosing a Short Term Business Loan?

  1. Repayment fees: If you’ve decided that a short term business loan is the best solution for your company right now, then there are certain things to look for. Because short term loans usually carry higher interest rates, you’ll want to pay it off as fast as possible so look for a loan without any early repayment charges.
  2. Repayment schedule: Some short term lenders want repayments to be made daily or weekly rather than monthly, which could pose a challenge to your cash flow. Another issue is that many lenders allow you to renew your loan as soon as you’ve paid it or even when you’ve paid off just the majority of the amount. This can seem like a plus if you need more financing, but it can also turn into a temptation to keep on borrowing more without ever fully throwing off your debts.

The 3 Best Lenders for Small Businesses

1. Lendio


  • 10 different loan types
  • No minimum credit score

Lendio is an online small business loan aggregator that brings business owners and lenders together on one platform. The site is free to use, and offers over ten distinct loan programs, for every business need, from business acquisition to funding for commercial real estate, increasing your chances to find both a lender and a specific loan program that suits your needs.    

Read the full Lendio review

Lendio Lendio View Rates

2. OnDeck


  • 24-hour approval
  • Excellent customer service

OnDeck offers conventional business loans and lines of credit, allowing flexibility to get the loan you need. Best of all, you can have your money within 24 hours with fast approval and excellent customer service.

Read the full OnDeck review

View Rates

3. Rapid Finance


  • Quick application & approval
  • Multiple financing options

Founded in 2005, Rapid Finance advertises its dedication to “entrepreneurialism” and has extended over $2 billion in funding to companies. Operating as an alternative to banks and other traditional lending institutions provides Rapid Finance with the flexibility to work with businesses of all sizes across a broad range of industries.

Read the full Rapid Finance review

Rapid Finance Rapid Finance View Rates


Short term business loans are an easy way to get access to working capital in a hurry when you need to cover temporary cash flow issues or take advantage of a great business opportunity. Each of the five loan providers we’ve profiled here can fix you up with a competitive short term business loan.