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Short-Term Small Business Loans For Good & Bad Credit

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  • Quick access to cash to cover immediate needs
  • Flexible repayment terms, such as daily or weekly payments
  • Minimal paperwork
  • Higher cost of borrowing
  • Lower funding amounts than traditional loans
  • Repayment within a few months or a year

Short-Term Small Business Loans For Good & Bad Credit

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Fast Short Term Business Loans For Startups, Bad Credit & More

Lenders for fast short term business loans

While financial decisions deserve careful attention, the need to access a loan fast can arise. In an effort to grow your business, a business loan can come in handy, and some lenders can fund them faster than others. If you need funds fast, we still encourage you to pay attention to offers and do what you can given the timeline to prepare to apply. 

Lender Highlight: OnDeck 

  • Best for fast short term loans 
  • Minimum credit score requirement: 625

Since 2006, OnDeck has been building a reputation of helping businesses grow. With funding times up to 3 days, qualified applicants can get the funds they need fast. On top of fast funding times, they are also known for lenient requirements. Unlock Fora Financial, OnDeck can help business owners establish credit along the way. For some, the required automatic daily or weekly payments may be a downside. 

Lenders For short term loans for startup business

Startups can struggle to find affordable funding, and funding they qualify for. However, funding is critical for startups. Some lenders have more lenient requirements when it comes to time in business and other factors. Startups will need to find the right lenders and sources in order to obtain the funding they need to grow. 

Lender highlight: Fora Financial

  • Best for short terms loans for bad credit and startup loans
  • Minimum credit score requirement: 500

With many lenders requiring a minimum of two years in business, it can sometimes be hard to get a startup business loan. Fora Financial’s business loan only requires you to be in business for six months to receive funding of up to $1,400,000. Additionally, term loans with Fora Financial do not require collateral. On the downside though, Fora Financial only offers two types of loans and repayment periods are short. Fora Financial offers Merchant Cash Advances (MCA) and short-term business loans. Startups with varying sales may find it easier to keep up with MCA’s as opposed to a traditional term loan.

What are short-term business loans?

Short-term business loans are financing options that you can use for several reasons when you own your own business. Short-term loans are commonly used to cover unexpected emergency expenses, boost cash flow during a slow time, or buy inventory or supplies needed to fulfill large customer requests. No matter your reason for needing a short-term cash infusion, a short-term loan most likely can be one of your best options. 

Short-term business loans come in many forms. Commonly, there are business term loans, business lines of credit, business credit cards, invoice financing, and merchant cash advantages. Although these different options can provide you with the short-term financing you need, some may be better for your situation than others. Short-term business loans usually have a repayment period of three to eighteen months.

Short Term Lenders

  • Rapid Finance - Terms as short as 4 months and funding as soon as the same business day upon approval
  • Credibly - Terms as short as 3 months and funding may be same business day depending
  • OnDeck - Short-term loans have repayment terms of a few months to a year or more, good for when you expect a quick return on what you’re investing in with the loan funds. Loan approval can be as fast as a few days, even for business owners with poor credit — however, higher rates are often a trade-off for speed and accessibility.

How do short-term business loans work?

Short-term business loans work by providing a business with a quick boost of cash that can be paid off within 12, 18, or 24 months. If you’re looking to acquire a short-term business loan in the form of a term loan, then you can work with your bank or credit union or find an online lender who can help you obtain the loan. 

Short-term business term loans work just like other types of conventional business and personal loans. Short-term loans are usually easier to qualify for, and business owners should have plenty of options. For lenders, short-term loans can be profitable yet less risky, so they like them. Even though the term is short, it can be costly. It’s important to pay attention to total loan costs when shopping. 

Before applying for a short-term loan, you should review your credit history and score. If there are ways to improve your chance of qualifying, you can do so. To access insights that will help you qualify for a loan, you can visit mySMBscore online. We will help business owners understand how lenders will view finances when approving a loan. When you’re ready for a short-term business loan, here’s a breakdown of how it will work.

Step #1: Fill out the application data 

Step #2: Link your business data and check your SMBscore

Step #3: Review Lender offers customized to your information

Step #4: Choose the offer that best fits your business needs 

Step #5: Complete the application process with the lender and submit any required documents

Step #6: Receive funds as a lump sum

Step #7: Repay the loan in fixed monthly installments with interest until paid in full

What are the different types of short-term small business loans?

The most common types of short-term business loans include business term loans, business lines of credit, invoice financing, and merchant cash advances. Here is a quick breakdown of these commonly used sources of short-term business financing. 

  1. Business term loans: A predetermined amount of money provided upfront in exchange for monthly or weekly payments that work to pay down the principal and the predetermined amount of interest on the loan. Loan terms can be for 12, 18, or 24 months.
  2. Business lines of credit: A revolving line of credit that includes a limit on how much a business can borrow. Businesses can take as little or as much of that amount as they need, when needed, and pay it back over time. Anytime a payment is made, the amount paid replenishes the credit line and can be borrowed again.
  3. Invoice financing: A way for businesses to use their unpaid invoices to obtain short-term cash infusions by selling the invoices to a third party at a discounted rate or by using the invoices as collateral to secure a short-term loan. Fees charged by invoice financing companies can vary, but typically, the fees come as a percentage of what is to be collected from the invoices.
  4. Merchant cash advances: A way for a business that receives a large volume of credit card transactions each day to get a short-term cash advance. A business pays back the loan by giving up a certain percentage of its daily credit card sales until the principal and factor rate is paid in full.

How long is a short-term small business loan?

Most short-term business loans come with terms of up to 12 or 18 months, but this can vary. Some lenders may offer terms up to two years, while others may offer them as short as three months. It all really depends on the type of financing and the lender. For example, with an invoice financing company, typically, you can pay back the amount borrowed within 30 to 90 days, depending on when the invoice is paid.

How do you qualify for a short-term business loan?

To qualify for a short-term business loan, you first need to own your own business. Also, you should have a good personal credit score, and if your business has an established credit score, that should also be good. Next, a lender will want to see a solid amount of business revenue and personal income that demonstrates you can easily make the necessary payments. Last, a lender may want to examine your business experience to see if you have a demonstrated history of establishing and running successful businesses.

If you are looking for invoice financing, a lender will want to see the invoices you plan to sell or borrow against. For a merchant cash advance, the lender will want to see a high volume of credit card sales coming in each day. 

Qualification requirements can vary depending on the lender, but to understand how likely you are to qualify, visit mySMBscore. 

Why would a small business need a short-term loan?

Short-term business can help businesses overcome cash flow challenges, buy equipment, expand, cover payroll, purchase inventory, and more. There are dozens of reasons why a business may need a short-term loan.  If you need money to help your business, a short-term business loan can be the perfect solution. To determine if it’s right for your business, weigh the pros and cons and make sure financially you can afford it. 

What are the pros and cons of short-term business loans?

Short-term business loans are popular and a good source of financing for small business owners who need a quick cash infusion to cover operating costs, buy inventory and supplies, or pay for an unexpected emergency expense. 

Short-term business loans are also good for helping to provide some working capital when business is slow for seasonal businesses. However, there are still some downsides to short-term business loans that borrowers should consider before obtaining a loan. 

Here are some of the main pros and cons of short-term business loans.


  • Fast loan processing and funding times
  • More flexible requirements for qualification
  • Simple application process
  • Many options to choose from


  • Higher interest rates than longer-term loans
  • Frequent payments can restrict cash flow

Are there short-term loans for startup businesses?

Startups struggle to qualify for financing, and that’s no surprise. The good news is that there are short-term business loans for startups. MySMBscore can be an extremely valuable resource for startups wondering how to qualify for a business loan. While a startup may not be able to qualify today, it can work toward qualifying. In the interim, business owners can use personal loans to fund their businesses. 

For a short-term business loan, most lenders will want a minimum time in business and minimum revenue. The exact requirements can vary, so check with the lender of your choice. At mySMBscore you can connect with lenders that may be able to help based on your finances and the business information you submit. 

Lenders may still rely on your personal credit score, too, even though you’re applying for a business loan. It’s common for lenders to request a personal guarantee or collateral, even for short-term loans. Business owners can borrow against their home, car, or other assets to qualify for a loan. While this can help you chase your dream of operating a successful business, be cautious, as you may lose the collateral if things go wrong. Always prepare for the worst-case scenario and keep cash in savings. 

Short-term loans are better for startups than long-term loans, thus making them a good starting point. Monitor your SMBscore regularly to get your business in a position where it can always qualify for the funds it needs, startup or not. 

How do I apply for a short-term business loan?

To apply for a short-term business loan, you’ll need to determine how much you need to borrow and who you want to apply with. It’s a good idea to shop offers, especially if you can do so without impacting your credit. You should also gather documentation that may be requested, such as tax returns, profit and loss statements, business licenses, and so forth. Before you apply for a short-term business loan, you should check your business credit and history and personal credit and history. To do so, visit mySMBscore. 

The SMBscore was developed to create an industry-specific, tailor-made risk assessment that can be used to determine the financial stability of small and medium-sized businesses (SMBs). It allows business owners to review their finances through a similar lens that a lender will. At mySMBscore you can view insights that lenders look at to approve your financing. Our platform can help you determine areas of improvement so that you can be as prepared as possible before applying for a loan. We can even help connect you to lenders that you have the best chance of qualifying for. Our goal is simple - to help businesses prosper. 

Launch your startup. . . check your SMBscore today and fast track the ability to qualify for financing!

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