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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 9 of the 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 Same-day funding | $100,000 | 625 | with Fundera by NerdWallet |
American Express® Business Line of Credit* Read Review | 4.6/5 Best for Low-revenue businesses | $250,000 | 660 | Read Review |
Fora Financial - Online term loan | 4.5/5 Best for Bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Bluevine - Line of credit | 5.0/5 Best for Short-term loans | $250,000 | 625 | with Fundera by NerdWallet |
iBusiness Funding - Online term loan | 4.5/5 Best for Long-term loans | $500,000 | 660 | with Fundera by NerdWallet |
Fundbox - Line of credit Read Review | 4.9/5 Best for Startups | $150,000 | 600 | Read Review |
National Funding - Online Term Loan | 4.1/5 Best for Unsecured loans | $500,000 | 600 | with Fundera by NerdWallet |
JR Capital Equipment Financing | 4.1/5 Best for Equipment loans | $10,000,000 | 620 | with Fundera by NerdWallet |
AltLINE - Invoice Factoring Read Review | 4.4/5 Best for Invoice factoring | $5,000,000 | 300 | Read Review |
Here are 9 of the best online business loans
Best for Same-day funding
Best for Low-revenue businesses
Best for Bad credit
Best for Short-term loans
Best for Long-term loans
Best for Startups
Best for Unsecured loans
Best for Equipment loans
Best for Invoice factoring
I'M INTERESTED IN:
Our pick for
Same-day funding
OnDeck offers a short-term line of credit of up to $100,000. The lender can fund applications as soon as the same day.
OnDeck - Line of credit
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.
- Requires personal guarantee.
OnDeck - Line of credit
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.
- Requires personal guarantee.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- No bankruptcies in the past two years.
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*
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.
- Personal guarantee required.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
American Express® Business Line of Credit*
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.
- Personal guarantee required.
- 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
Bad credit
Fora Financial’s minimum credit score requirement is 570, lower than any other lender on our list.
Fora Financial - Online term loan
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.
Fora Financial - Online term loan
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.
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
Short-term loans
Bluevine offers up to $250,000 with repayment terms of 26 weeks.
Bluevine - Line of credit
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.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared to traditional lenders.
Bluevine - Line of credit
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.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared to traditional lenders.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
- No bankruptcies in the past year.
Our pick for
Long-term loans
Funding Circle’s online business loans can have terms as long as seven years.
iBusiness Funding - Online term loan
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 two years.
- Minimum credit score is higher than some other lenders.
iBusiness Funding - Online term loan
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 two years.
- Minimum credit score is higher than some other lenders.
Qualifications:
- Minimum credit score: 660.
- Minimum time in business: Two years.
- Minimum annual revenue: $50,000.
- No bankruptcies in the past seven years.
Our pick for
Startups
Fundbox accepts applications from businesses with as little as three months in business.
Fundbox - Line of credit
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly -- accepts borrowers with a minimum of three months in business.
- 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.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox - Line of credit
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly -- accepts borrowers with a minimum of three months in business.
- 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.
- May require personal guarantee.
- 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.
Our pick for
Unsecured loans
National Funding doesn’t require physical collateral or a down payment for its online term loans.
National Funding - Online Term Loan
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.
- Short-term loans require daily or weekly repayment.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing.
National Funding - Online Term Loan
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.
- Short-term loans require daily or weekly repayment.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $250,000.
Our pick for
Equipment loans
JR Capital can fund equipment loans online of up to $10 million. These loans can be used for a variety of new or used equipment purchases.
JR Capital Equipment Financing
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
JR Capital Equipment Financing
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Qualifications:
- Minimum credit score: 620.
- Minimum time in business: Typically two years, but can prioritize industry experience in some cases.
- No minimum annual revenue requirement.
Our pick for
Invoice factoring
AltLINE’s online invoice factoring can offer business-to-business companies cash for their unpaid invoices.
AltLINE - Invoice Factoring
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
AltLINE - Invoice Factoring
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
Qualifications:
- All credit scores may be accepted (ranging from 300 to 850).
- No minimum time in business requirement.
- No minimum annual revenue requirement.
- Must be a B2B business.
Frequently asked questions
Business term loans
Business lines of credit
Equipment financing
Invoice financing and invoice factoring
Merchant cash advances
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.
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.
1. Understand your financing needs
2. Evaluate your qualifications
3. Compare lenders
- Loan amounts.
- Interest rates.
- Additional loan fees.
- Repayment terms.
- Prepayment penalties.
- Customer support options.
4. Submit your application
- Business and personal tax returns.
- Business and personal bank statements.
- Business financial statements (e.g., profit and loss statement, balance sheet).
5. Review your loan agreement and receive funds
SBA loans
Business credit cards
Bootstrapping
Family and friends loans
Methodology
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.