How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 5 best cash flow loans you should consider
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
Fora Financial - Online term loan with Fundera by NerdWallet | 4.7/5 Best for borrowers with bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for fast-funding loans | $250,000 | 625 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 4.8/5 Best for short-term loans | $250,000 | 625 | with Fundera by NerdWallet |
American Express® Business Line of Credit* | 5.0/5 Best for low cost options | $250,000 | 660 | Read Review |
Fundbox - Line of credit | 4.9/5 Best for startups | $150,000 | 600 | Read Review |
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Our pick for
borrowers with bad credit
Fora Financial’s term loan can be used for a wide variety of purposes. You may be able to qualify with a minimum personal credit score of 570.
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
Fora Financial’s term loan can be used for a wide variety of purposes. You may be able to qualify with a minimum personal credit score of 570.
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.
Qualifications:
- 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
fast-funding loans
Bluevine’s revolving line of credit is available up to $250,000 with repayment terms of 26 weeks. You can receive approval and get funding in as fast as 12 hours.
Bluevine - Line of credit
Max loan amount
$250,000
Min. credit score
625
Est. APR
18.00-48.00%
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
18.00-48.00%
Bluevine’s revolving line of credit is available up to $250,000 with repayment terms of 26 weeks. You can receive approval and get funding in as fast as 12 hours.
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.
Qualifications:
- 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
short-term loans
OnDeck’s term loan is available in amounts up to $250,000 with repayment terms up to 24 months. It can be a good option for specific investments in your business.
OnDeck - Online term loan
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
May fund quickly
OnDeck - Online term loan
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
OnDeck’s term loan is available in amounts up to $250,000 with repayment terms up to 24 months. It can be a good option for specific investments in your business.
OnDeck’s short-term loan is a good option for making one-time investments in your business, such as opening a new location or renovating your space. This loan offers fast funding (sometimes as quickly as the same day) for borrowers who may not qualify for more traditional financing options. OnDeck’s short-term loan can also be used to establish and build business credit — as the lender reports your payment history to the three commercial credit bureaus.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100,000.
- Must have business bank account.
May fund quickly
Our pick for
low cost options
American Express® Business Line of Credit charges total monthly fees that are based on the length of the term. For example, it charges a total monthly fee of 12-18% for 24-month loans. There are no origination fees, application fees or prepayment penalties.
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
American Express® Business Line of Credit charges total monthly fees that are based on the length of the term. For example, it charges a total monthly fee of 12-18% for 24-month loans. There are no origination fees, application fees or prepayment penalties.
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.
Qualifications:
- 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.
Our pick for
startups
Fundbox offers lines of credit up to $150,000. You may be able to qualify with just three months in business.
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 offers lines of credit up to $150,000. You may be able to qualify with just three months in business.
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).
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
May fund quickly
Cash flow loans, explained
Technically, any type of small-business loan that is used to meet cash flow needs could be considered a cash flow loan; however, the term “cash flow loan” may more specifically refer to an unsecured loan that is issued based on the projected revenue of your business.
Cash flow loans can be used for a variety of purposes, such as:
- Buying inventory.
- Hiring staff.
- Making payroll.
- Covering day-to-day expenses (e.g., rent, insurance).
- Managing a seasonal slowdown or cash flow gap.
Here's a more detailed breakdown of cash flow loans:
- Where to get them: Cash flow loans are usually available from online or other alternative lenders.
- How they’re structured: Some cash flow loans are structured like a standard term loan or line of credit, while others work like a merchant cash advance. With the latter, you receive an upfront sum of capital and repay it using a percentage of your debit and credit card sales, plus a fee.
- How they differ from other loans: In general, cash flow loans have shorter terms and higher interest rates than more conventional small-business loans, like bank or SBA loans.
- How lenders decide which loans to approve: Instead of relying on your credit score or available collateral, lenders prioritize your business revenue when underwriting your loan application. Although the lender may check your credit history and ask how long you’ve been in business, these factors tend to weigh less heavily on the decision-making process.
- Documents you may need to apply: Lenders may ask to see your bank statements, financial statements and merchant accounts, among other documents to evaluate your business’s historical and projected performance.
» Increase your odds of getting approved: How to qualify for a small-business loan
Cash flow loan vs. traditional small-business loan
Cash flow loan | Traditional small-business loan | |
|---|---|---|
Qualifications | Based on historical and projected performance, or cash flow, of your business. | Based on time in business, business and personal credit histories, revenue, collateral and debt service coverage ratio (DSCR). |
Collateral | Personal guarantee or UCC lien. | May also require physical collateral like cash deposits, vehicles or property. |
Terms | Typically short term loans – between one and two years. | Between two to 10 years, or up to 25 years for certain SBA loans or commercial real estate loans. |
Interest rates | Between 20% to 99%. | Depending on lender and collateral, between 4% and 99%. |
Pros and cons of cash flow loans
Pros
If you need a fast business loan, some cash flow lenders can approve and fund applications in just 24 hours. And while bank and SBA lenders may take weeks or even months to issue financing, most cash flow loans are available within a few business days.
Cash flow loans are usually issued by online lenders, which typically offer a streamlined application process. You can often complete and submit a simple application with minimal documentation required. Plus, cash flow lenders may leverage technology to underwrite your application — asking you to connect your financial accounts to their online platform — instead of having you submit documents for them to review manually.
Cash flow lenders prioritize your historical and projected revenue when evaluating your application — meaning they’re generally more flexible when it comes to traditional eligibility requirements. Although requirements vary by lender, startups and/or businesses with bad credit may be able to qualify.
You don’t need to put up physical collateral, like equipment or real estate, to secure a cash flow loan. Asset-based lenders, on the other hand, will require collateral to back your financing.
Cons
Because of their unique underwriting process and lack of collateral, cash flow loans are considered riskier than traditional business loans. To offset this risk, lenders typically charge higher interest rates and fees — annual percentage rates can range anywhere from 20% to 99%. Interest rates can even reach triple digits with products like merchant cash advances.
Cash flow loans tend to have short terms and frequent repayments — daily or weekly — instead of monthly. This payment schedule can impact your cash flow and be difficult to manage, particularly if you’re a seasonal business or took out the loan to fill a cash flow gap. The frequent payments combined with high interest rates can trap you into a cycle of debt that’s hard to break out of, especially if you need to take another loan or refinance an existing one to repay.
Although you won’t need to secure your cash flow loan with physical collateral, most lenders will require you to sign a personal guarantee. This agreement states that you’ll pay back your loan with your personal assets if your business defaults. Some lenders may also take out a Uniform Commercial Code lien on your business assets. This document allows a lender to use your business assets to recoup its losses in the case of default.
Types of cash flow loans
Term loan
Term loans are the most common type of small business loan, and online lenders may offer term loans based on future cash flow instead of more traditional loan requirements. Term loans — even those from online lenders — may have lower rates and fees than other types of alternative financing like invoice financing or merchant cash advances (MCAs).
Business line of credit
Lines of credit are revolving business loans, where you can borrow up to a certain amount and only pay interest on the amount borrowed. Once you repay the original amount back, you can borrow more money, up to your limit. Business lines of credit can be expensive, but work well for businesses that have frequent gaps in cash flow due to customer payments or seasonality.
Invoice financing
Invoice financing is a type of business loan that functions similar to a cash advance — where you use unpaid customer invoices as collateral for a lump sum from a third-party invoice financing company. These cash flow loans work best for B2B businesses, especially those that operate seasonally.
Merchant cash advance
Not technically a business loan, a merchant cash advance (MCA) is an alternative form of business financing that involves a company providing a cash advance by essentially purchasing your future sales. MCAs are one of the most expensive forms of business financing, and are generally best as a last resort.
How to get a cash flow loan
To get a cash flow loan, you can follow these basic steps.
Understand your financing needs
Determine what you’re going to use your loan for, how much capital you need and how quickly you need it. Also, think about which type of cash flow loan is the best fit for your needs. For example, if you think a revolving source of funding would be beneficial, maybe a business line of credit is the best option.
Evaluate your business credentials
You’ll want to look closely at your historical revenue, projected revenue, cash flow and other financial data. Although your credit score may not be a top priority for cash flow lenders, you should also check your credit history to help you get a sense of what type of loans you can qualify for, and what loan amount and rate you might expect.
Research and compare lenders
Explore several online lenders to find the right option for your business. When comparing different options, consider factors such as interest rates, repayment terms, funding speed, application process, customer service and lender reputation.
» Estimate rates and payments with our business loan calculator
Submit your application
Cash flow lenders typically offer simple, online applications that can be completed in a matter of minutes. You shouldn’t need extensive documentation, but you may be asked to provide:
- Personal and business tax returns.
- Personal and business bank statements.
- Business financial statements (e.g., profit and loss statement or a balance sheet).
You’ll also likely be required to sign a personal guarantee.
Review your loan agreement
Thoroughly review your loan agreement before signing and make sure the interest rates and repayment terms are laid out clearly. Instead of using an APR, some cash flow lenders may give simple interest rates or factor rates, so you’ll want to try and calculate these rates into an APR to get a better understanding of how much your loan costs.
If you have any questions or concerns about your business loan agreement, reach out to your lender for clarification. If a lender won’t provide rates and terms upfront or seems hesitant to provide straightforward answers to your questions, these could be red flags of a predatory company. In this case, you might consider looking for a loan elsewhere.
Former NerdWallet writer Jackie Zimmermann contributed to this article.
Last updated on February 4, 2025
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and 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
Frequently Asked Questions
Interest rates on cash flow loans range anywhere from 20% to 99%. APRs on merchant cash advances can even reach triple digits. The interest rate you receive, however, will vary based on your lender and business’s qualifications.
Some of the most common types of cash flow loans include business lines of credit, short-term loans, invoice financing and merchant cash advances.
Cash flow loans are typically considered unsecured because you don’t need to provide physical collateral, like equipment or real estate, to get approved. Most cash flow lenders, however, will require you to sign a personal guarantee and/or take out a lien on your business assets.