Here are 8 best online business loans
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
OnDeck - Line of credit with Fundera by NerdWallet | 5.0/5 Best for fast line of credit draws | $100,000 | 625 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.7/5 Best for borrowers who have bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for same-day funding | $250,000 | 625 | with Fundera by NerdWallet |
iBusiness Funding - Online term loan with Fundera by NerdWallet | 4.2/5 Best for long repayment terms | $500,000 | 660 | with Fundera by NerdWallet |
Fundomate - Term loan with Fundera by NerdWallet | 4.5/5 Best for overall flexibility | $500,000 | 600 | with Fundera by NerdWallet |
National Funding - Equipment financing with Fundera by NerdWallet | 4.6/5 Best for equipment financing | $150,000 | 600 | with Fundera by NerdWallet |
Fundbox - Line of credit | 4.9/5 Best for startups | $150,000 | 600 | Read Review |
American Express® Business Line of Credit* | 5.0/5 Best for low-revenue businesses | $250,000 | 660 | Read Review |
I'M INTERESTED IN:
Our pick for
fast line of credit draws
OnDeck offers a line of credit of up to $100,000 that can be approved and funded within four business days. Subsequent draws between $1,000 and $10,000 can be funded instantly via a debit card.
OnDeck - Line of credit
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.90-84.90%
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
May fund quickly
OnDeck - Line of credit
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.90-84.90%
OnDeck offers a line of credit of up to $100,000 that can be approved and funded within four business days. Subsequent draws between $1,000 and $10,000 can be funded instantly via a debit card.
OnDeck’s fast line of credit is a standout option for small-business owners with less-than-stellar credit who need working capital. This line of credit offers flexible repayment options, allowing you to choose between three term options and a weekly or monthly frequency. It’s also a good option for borrowers who don’t want to risk their company assets; OnDeck’s line of credit does not require physical collateral and it doesn’t take a UCC lien out on your business.
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100,000.
- No bankruptcies in the past two years.
May fund quickly
Our pick for
borrowers who have bad credit
For borrowers who can’t qualify for traditional funding because of bad personal credit, Fora Financial’s minimum credit score requirement is 570, lower than any other lender on our list. (Fora only conducts a soft credit pull when you apply, so there’s no unnecessary harm to your credit if you don’t get approved.)
Fora Financial - Online term loan
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial - Online term loan
Max loan amount
$1,500,000
Min. credit score
570
For borrowers who can’t qualify for traditional funding because of bad personal credit, Fora Financial’s minimum credit score requirement is 570, lower than any other lender on our list. (Fora only conducts a soft credit pull when you apply, so there’s no unnecessary harm to your credit if you don’t get approved.)
Fora Financial stands out as a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide prepayment discounts for those who repay early.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
Our pick for
same-day funding
For a small added fee, Bluevine can approve and fund a line of credit within a single business day, and it can fund approved draws instantly if you have a Bluevine Business Checking account.
Bluevine - Line of credit
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
May fund quickly
Bluevine - Line of credit
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
For a small added fee, Bluevine can approve and fund a line of credit within a single business day, and it can fund approved draws instantly if you have a Bluevine Business Checking account.
Bluevine stands out for its fast funding speed and flexible qualification requirements. To get a line of credit, you can apply quickly online and receive funding in as little as 24 hours. Newer businesses and borrowers with bad credit may be able to qualify. Bluevine also offers a larger credit line maximum compared to some competitors and doesn’t charge draw or account maintenance fees.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
- No bankruptcies in the past year.
May fund quickly
Our pick for
long repayment terms
iBusiness Funding’s business loans can have terms up to seven years, with lower interest rates than many other online lenders, making it an ideal online option for larger purchases to finance over a long period of time.
iBusiness Funding - Online term loan
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
May fund quickly
iBusiness Funding - Online term loan
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
iBusiness Funding’s business loans can have terms up to seven years, with lower interest rates than many other online lenders, making it an ideal online option for larger purchases to finance over a long period of time.
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders. And with a large maximum funding amount, this loan can be used for a variety of long-term expansion projects, as well as refinancing existing debt.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
- Minimum credit score: 660.
- Minimum time in business: 24 months.
- Minimum annual revenue: $50,000.
- No bankruptcies in the past seven years.
May fund quickly
Our pick for
overall flexibility
Fundomate provides flexible financing options for business owners seeking fast access to cash to expand their business, lease equipment, cover advertising costs and more. Borrowers have the choice to repay their loan daily, weekly or biweekly.
Fundomate - Term loan
4.5
NerdWallet rating with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
600
Est. APR
18.00-75.00%
Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
Fundomate - Term loan
NerdWallet rating
4.5/5
Max loan amount
$500,000
Min. credit score
600
Est. APR
18.00-75.00%
Fundomate provides flexible financing options for business owners seeking fast access to cash to expand their business, lease equipment, cover advertising costs and more. Borrowers have the choice to repay their loan daily, weekly or biweekly.
Fundomate provides access to short-term funding in as little as 24 hours. It can be a good option for businesses that have significant debt and credit card sales — as the product functions like a merchant cash advance. Unlike some MCAs, however, Fundomate gives you a few different options for how you can structure repayments.
Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
- Minimum credit score: 600.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
Our pick for
equipment financing
National Funding’s equipment loan allows business owners to borrow up to $150,000 to buy new or pre-owned equipment, including vehicles, medical equipment, technology and office furniture. Fast funding allows you to stay competitive as a buyer and capitalize on the best opportunities.
National Funding - Equipment financing
Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Equipment financing
Max loan amount
$150,000
Min. credit score
600
National Funding’s equipment loan allows business owners to borrow up to $150,000 to buy new or pre-owned equipment, including vehicles, medical equipment, technology and office furniture. Fast funding allows you to stay competitive as a buyer and capitalize on the best opportunities.
National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $250,000.
Our pick for
startups
Fundbox accepts applications from businesses with as little as three months in business and low monthly revenue requirements, making it a good option for businesses that are just getting up and running.
Fundbox - Line of credit
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
May fund quickly
Fundbox - Line of credit
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Fundbox accepts applications from businesses with as little as three months in business and low monthly revenue requirements, making it a good option for businesses that are just getting up and running.
Fundbox is one of the best online line of credit options for startups. Businesses with just three months in business may be able to qualify. Fundbox is also a good option for borrowers with bad credit and businesses with low revenue. The lender offers a flexible short-term line of credit that can fund within one business day after approval.
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
May fund quickly
Our pick for
low-revenue businesses
Businesses with an average monthly revenue of at least $3,000 may be able to qualify for the American Express® Business Line of Credit.
American Express® Business Line of Credit*
Max loan amount
$250,000
Min. credit score
660
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
American Express® Business Line of Credit*
Max loan amount
$250,000
Min. credit score
660
Businesses with an average monthly revenue of at least $3,000 may be able to qualify for the American Express® Business Line of Credit.
The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital. This line of credit offers a monthly repayment schedule and no extra fees. Existing American Express customers can login to their accounts to see if they’re pre-approved for funding.
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
- Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
- Must have started your business at least a year ago.
- Average monthly revenue of at least $3,000.
- All businesses are unique and are subject to approval and review.
- American Express® Business Line of Credit offers two loan types, installment loans and single repayment loans for eligible borrowers. All loan term types, loan term lengths, and pricing are subject to eligibility requirements, application, and final approval. This article contains general information about the American Express® Business Line of Credit installment loan type only.
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
Objective and comprehensive business loans ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
What is an online business loan?
An online business loan can be a term loan, line of credit or other type of business financing offered by a nonbank or alternative lender. While banks or credit unions may require you to visit a branch, online lenders typically process and fund small-business loans entirely online.
Because everything’s done online, these loans are usually fast to fund, with more flexible qualification requirements than other types of business financing. Some online business lenders even work with startups or businesses with bad credit.
Speed and flexibility come with a cost, however. Online business loans tend to have higher interest rates than bank or U.S. Small Business Administration loans. Annual percentage rates for online loans range from 6% to 99%.
Many online lenders don’t require collateral — assets such as real estate, equipment and unpaid invoices that can be seized by the lender if you don’t repay the loan. However, offering collateral may help you get lower interest rates and better terms, such as a longer repayment period.
Frequently asked questions
Online business loans are a safe and legitimate way to fund your business. These loans can be good options if you need fast access to cash or if you can’t qualify for other types of business loans.
Predatory lenders do exist online, however, looking to take advantage of small businesses. Watch for these red flags: Lenders that guarantee approval, make you pay a fee upfront or don’t have a physical address.
Some online business lenders can approve applications within minutes and offer funding within 24 hours. Ultimately, funding speed varies based on the individual lender, but many online lenders issue loans within a matter of days.
Many online business lenders don’t require you to provide physical collateral to secure your loan. Your lender may take out a blanket lien on your business assets, however. This means that if you don’t repay your loan, your lender may take possession of other business assets, like inventory, accounts receivable or real estate, to recover its losses. You’ll also likely need to sign a personal guarantee, which holds you personally responsible to pay back the loan with your own assets if your business goes belly up.
While collateral may not be required for an online business loan, you may be able to offer it to access better interest rates and repayment terms.
An online business loan can be a good option for businesses with low credit scores. Online lenders generally have more flexible qualification requirements than traditional lenders like banks. For example, Fora Financial, one of the lenders on our list, has a minimum credit score requirement of 570.
Types of online business loans
There are many types of online loans you can use to finance your small business. Here are some of the most common options.
Business term loans
Small-business term loans provide a lump sum of cash that you repay, with interest, over a set period of time. Some online lenders offer short-term loans, with terms of 12 months or less — while others offer longer repayment terms of seven years, for example.
Because you can repay business term loans over an extended period, these online loans are usually a good choice for larger investments and long-term growth.
Business lines of credit
A business line of credit allows you to withdraw cash as needed up to a set limit. You only pay interest on the money you’ve borrowed. You repay the money you withdraw over a specific period of time, with minimum payments due typically every week or month.
Compared with term loans, business lines of credit are more flexible — making them a good choice for managing cash flow, covering payroll and other short-term needs.
Equipment financing
Equipment financing is a type of small-business loan used to buy machinery or equipment. Equipment loans are typically structured as term loans — with repayment periods often based on the expected life of the equipment you’re looking to buy. Depending on the equipment, that could mean loan terms of a year to up to 10 years or more.
With equipment financing, the equipment you purchase typically serves as collateral on the loan, which means you may not have to rely as heavily on your credit or financial history to qualify.
Invoice financing and invoice factoring
Invoice financing allows you to borrow money against your outstanding invoices. A lender gives you a percentage of your unpaid invoices upfront in the form of a loan or line of credit with the invoices serving as collateral. Once your customer pays the invoice, you pay the lender back the amount borrowed, plus fees and interest.
With invoice factoring, on the other hand, you sell your outstanding invoices to a factoring company at a discount. The factoring company then collects payments from your customers directly.
Both of these types of financing are good options for business-to-business companies that need to cover cash flow gaps. Invoice factoring and financing can also be easier to qualify for than other types of business loans — but may have higher interest rates.
Merchant cash advances
A merchant cash advance, or MCA, provides you with a lump sum of money that you repay using a percentage of your future credit and debit card sales, plus a fee. A merchant cash advance isn't technically a loan — instead, an MCA company is buying your future sales at a discount.
Although merchant cash advances are fast to fund and easy to qualify for, they’re one of the most expensive forms of online business financing. NerdWallet recommends considering all other options before turning to an MCA.
» MORE: Best startup business loans
Pros
No need to visit a branch location.
Can receive funds within days or as quickly as 24 hours.
Fast application processes with minimal documentation required.
Lots of loan types to choose from with a range of interest rates, repayment terms and loan amounts.
Qualification requirements are typically more flexible and some lenders will also work with new businesses or those with bad credit.
Cons
Generally more expensive than bank and SBA loans. APRs for online loans can vary anywhere from 6% to 99%.
May require daily or weekly payments, and may have lower maximum funding amounts and shorter repayment periods than bank loans.
Not ideal if you’re looking to build a relationship with a lender or have someone address your questions one-on-one.
Some predatory lenders try to trap businesses with offers that seem too good to be true, especially if those businesses are having trouble finding financing elsewhere.
How to apply for an online business loan
Although loan applications vary from lender to lender, you’ll typically be able to apply for an online business loan within minutes. Here are the steps you can follow:
1. Understand your financing needs
The amount of funding you need and what type of online loan is best for your business will largely depend on how you will use funding and how much you can afford.
2. Evaluate your qualifications
Most lenders look at your personal credit score, time in business and annual revenue when reviewing your loan application. Online lenders may also look at your cash flow, financial accounts or outstanding invoices. You’ll want to review your business qualifications ahead of time so you know where your company stands. Also, you may want to estimate the value of any assets you plan to offer as collateral for your loan.
3. Compare lenders
You should explore and compare multiple private business loans to find the best fit for your needs. This includes reviewing factors such as:
- Loan amounts.
- Interest rates.
- Additional loan fees.
- Repayment terms.
- Prepayment penalties.
- Customer support options.
You’ll also want to research the lender and read reviews to make sure they’re reputable.
» Compare lenders: Use our business loan calculator to estimate total loan cost
4. Submit your application
With most online lenders, you should be able to complete and submit your business loan application in minutes. Some lenders have you fill out a simple form and connect your financial data to their system so they can evaluate your business information more quickly and provide a faster application decision.
You may also need to upload or email financial documents, such as:
- Business and personal tax returns.
- Business and personal bank statements.
- Business financial statements (e.g., profit and loss statement, balance sheet).
Additionally, your lender may secure the loan by taking out a blanket lien on your business assets — and you’ll likely be required to sign a personal guarantee.
» MORE: How to apply for a business loan
5. Review your loan agreement and receive funds
Online lenders typically fund business loan applications within a matter of days. Some lenders offer funding in as little as 24 hours. Before signing a business loan agreement, make sure you review the terms and conditions and talk to your lender if you have any questions.
Alternatives to online business loans
If an online loan is not the right fit for your business, you may want to consider these other types of funding.
SBA loans
SBA loans offer low interest rates and long repayment terms. You’ll often need multiple years in business and good credit to qualify, but SBA microloans typically offer more flexible eligibility requirements and may be an option if you need $50,000 or less in funding. SBA loans are generally slow to fund.
Business credit cards
Business credit cards can be used in a similar way to a business line of credit — they are a revolving source of capital, and you only pay interest on money you’ve spent. They may be easier to get than business loans because qualification typically relies on your personal credit, instead of your business’s age and revenue.
Bootstrapping
Bootstrapping involves self-funding your business through your personal resources which may include using your own savings, taking out personal loans and tapping into retirement accounts, including withdrawals called rollovers as business startups (ROBS) transactions. Self-funding allows you to avoid both debt and ownership dilution; however, if your business fails, you’ll lose the money you sunk into it.
Family and friends loans
When traditional forms of financing are not available, family and friends loans for your business may be a funding option. Although this type of loan doesn’t typically involve a formal loan application, you do want to put the loan details in writing to avoid any misunderstandings that could affect your personal relationships.
Last updated on January 29, 2025
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
See Your Loan Options