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Best Online Business Loans of 2024

By Randa Kriss
Last updated on September 19, 2024
Edited by Sally Lauckner
Fact checked and reviewed
Online business lenders often provide faster and easier access to capital than traditional lenders, though at higher interest rates.

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Online business loans are loans you can apply for completely online. Although any lender can use an online application, online business loans are usually offered by financial technology companies, not banks.
Compared with traditional lenders, online business lenders typically have more flexible qualifications and streamlined underwriting processes — but charge higher rates for these conveniences. As a result, these small-business loans are a good fit if you can’t qualify with a bank or are willing to pay extra for faster funding.

How much do you need?

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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

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

OnDeck - Line of credit

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5.0/5

Best for Same-day funding

$100,000625

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American Express® Business Line of Credit*

Read Review
5.0/5

Best for Low-revenue businesses

$250,000660
Read Review

Fora Financial - Online term loan

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4.8/5

Best for Bad credit

$1,500,000570

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Bluevine - Line of credit

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5.0/5

Best for Short-term loans

$250,000625

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iBusiness Funding - Online term loan

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4.6/5

Best for Long-term loans

$500,000660

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Fundbox - Line of credit

Read Review
5.0/5

Best for Startups

$150,000600
Read Review

National Funding - Online Term Loan

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4.4/5

Best for Unsecured loans

$500,000600

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JR Capital Equipment Financing

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4.1/5

Best for Equipment loans

$10,000,000620

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AltLINE - Invoice Factoring

Read Review
4.7/5

Best for Invoice factoring

$5,000,000300
Read Review

Here are 9 of the best online business loans

Best for Same-day funding

OnDeck

Max Amount

$100,000

Min. Credit Score

625

Best for Low-revenue businesses

American Express Business Blueprint™

Max Amount

$250,000

Min. Credit Score

660

Best for Bad credit

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

570

Best for Short-term loans

Bluevine

Max Amount

$250,000

Min. Credit Score

625

Best for Long-term loans

iBusiness Funding

Max Amount

$500,000

Min. Credit Score

660

Best for Startups

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Best for Unsecured loans

National Funding

Max Amount

$500,000

Min. Credit Score

600

Best for Equipment loans

JR Capital

Max Amount

$10,000,000

Min. Credit Score

620

Best for Invoice factoring

AltLINE

Max Amount

$5,000,000

Min. Credit Score

300

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

Read Review

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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.
  • Requires personal guarantee.
May fund quickly

OnDeck - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.90-84.90%
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*

Read Review
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.
  • Personal guarantee required.
  • Complex monthly fee structure makes it difficult to compare costs to other lenders.

American Express® Business Line of Credit*

NerdWallet rating 
5.0/5
Max loan amount
$250,000
Min. credit score
660

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

Read Review

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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.

Fora Financial - Online term loan

NerdWallet rating 
4.8/5
Max loan amount
$1,500,000
Min. credit score
570

Our pick for

Short-term loans

Bluevine offers up to $250,000 with repayment terms of 26 weeks.

Bluevine - Line of credit

Read Review

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Max loan amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%

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.
  • Requires personal guarantee.
  • Not available in North Dakota, South Dakota or Nevada.
  • Rates can be high compared to traditional lenders.
May fund quickly

Bluevine - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
May fund quickly

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

Read Review

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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 two years.
  • Minimum credit score is higher than some other lenders.
May fund quickly

iBusiness Funding - Online term loan

NerdWallet rating 
4.6/5
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
May fund quickly

Our pick for

Startups

Fundbox accepts applications from businesses with as little as three months in business.

Fundbox - Line of credit

Read Review
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.
  • 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).
May fund quickly

Fundbox - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
May fund quickly

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

Read Review

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Max loan amount
$500,000
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.
  • Short-term loans require daily or weekly repayment.
  • Requires higher annual revenue than other online lenders.
  • Misleading website marketing.

National Funding - Online Term Loan

NerdWallet rating 
4.4/5
Max loan amount
$500,000
Min. credit score
600

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

4.1
NerdWallet rating 

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Max loan amount
$10,000,000
Min. credit score
620
Est. APR
6.99-18.00%

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

NerdWallet rating 
4.1/5
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
6.99-18.00%

Our pick for

Invoice factoring

AltLINE’s online invoice factoring can offer business-to-business companies cash for their unpaid invoices.

AltLINE - Invoice Factoring

Read Review
Max loan amount
$5,000,000
Min. credit score
300

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

NerdWallet rating 
4.7/5
Max loan amount
$5,000,000
Min. credit score
300

How Much Do You Need?

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What is an online business loan?

An online business loan is one that’s offered by nonbank lenders, also called alternative lenders. 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

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 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. Consider all other options before turning to an MCA.
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

Determine how much money you need, how much debt you can afford and what type of online loan is best for your business.

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 lenders 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.
Use our business loan calculator to help you understand the total cost of a loan when comparing lenders. You’ll also want to research the lender and read reviews to make sure they’re reputable.

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 that 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.

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 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. If your business should fail, however, your personal assets could also be in jeopardy.

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 in the future that could affect your personal relationships.
Last updated on September 19, 2024

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