Short-term business loans can give your business the fast cash it needs to bridge cash-flow gaps, handle emergencies and unexpected expenses, or take advantage of a business opportunity.
Think of them as quick-turnaround loans: Borrow what you can pay back relatively quickly so you can focus on running your business rather than managing debt.
You can choose between a OnDeck short-term loan or a BlueVine short-term line of credit. Lines of credit are more flexible and generally have shorter repayment periods than short-term loans, making them more suitable for managing cash flow. (However, there are pitfalls of short-term business loans.)
Here are short-term financing options from online business lenders.
BlueVine lines of credit
IF YOU NEED TO BRIDGE CASH-FLOW GAP:
BlueVine is a good option for newer businesses.
- Pros: Only requires a minimum six months in business to qualify; fast funding
- Cons: High borrowing costs; need strong revenue
LINE OF CREDIT
- Loan amount: $5,000 to $250,000.
- APR: 15% to 78%.
- Loan term: Repaid over 6 or 12 months.
- Funding time: As fast as 24 hours.
- Read our review.
Do I qualify?
Before you apply for a BlueVine line of credit with BitX Funding, find out whether you meet the minimum qualifications.
Six-month line of credit:
600+ personal credit score
6+ months in business
$120,000+ in annual revenue
Personal guarantee required
12-month line of credit:
620+ personal credit score
At least two years in business
$450,000+ in annual revenue
Personal guarantee required
Not available in North Dakota, South Dakota or Vermont
OnDeck Short-term business loans
IF YOU NEED FAST CASH:
OnDeck is a good option if you don’t have perfect credit.
- Pros: High borrowing amounts; fast funding
- Cons: Costly financing; frequent repayments
- Loan amount: $5,000 to $500,000.
- APR: 16.7% to 99.4%, as of Q1 2018
- Loan term: Repaid daily or weekly for 3 to 36 months.
- Funding time: As fast as 24 hours but typically a few days.
- Read our review
*APRs change quarterly
Do I qualify?
Before you apply for an OnDeck loan with BitX Funding, find out whether you meet the lender’s minimum qualifications.
500+ personal credit score.
1+ year in business.
$100,000+ in annual revenue.
No bankruptcies in the last two years.
Personal guarantee required.
Pitfalls of short-term loans
While short-term business loans provide fast cash, they do come with some disadvantages, including:
- Higher cost: Short-term business loans typically carry a higher annual percentage rate, or APR, than long-term loans. Use NerdWallet’s business loan calculator to figure out how much a loan will cost you.
- More frequent repayments: Some lenders require payments daily or weekly as opposed to monthly. Although these payments are smaller, their frequency can be an issue for businesses that have uneven sales or don’t always hold much cash in a bank account.
- Risk of debt trap: The speed and ease of short-term business loans can become addictive. Instead of repaying the debt in full, business owners may be enticed to refinance and roll over the debt into a new loan.
|Start Up Line of Credit||Short Term Loans||Long Term Loans||Business Lines of Credit|
|BitX Funding start-up financing program connects entrepreneurs and business owners with $25,000 – $150,000+ in unsecured business lines of credit. This program can provide you with funding in as little as 10 days and is typically offered with 0% interest financing for the first 6-18 months.||Designed to help meet short-term needs, such as unexpected events, or to take advantage of a great deal. Typically, most small business owners qualify.||BitX Funding offers true long-term business loans with automatic monthly payments. If you are looking to Fund larger projects that pay back over a longer term with rates as low as 5.49% this option may be right for you?||Business lines of credit allow you to draw funds whenever you need. Funds will be deposited directly into your bank account. Repay via automated weekly debits over six months. Your available balance replenishes as payments clear. Lines of credit can go as high as $100,000 with interest rates averaging around 13%.|
BitX Funding is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.
You can reach a loan specialist by toll-free at 1-800-824-2407, or email at firstname.lastname@example.org or applying online here and we can guide you on which loan is the best fit for your business.