If you’re starting your own business right now, you’d probably find it difficult to get the fund you need to get going in the first place. Especially in the middle of a pandemic like the one we’re currently in right now. Still, don’t worry, because you can use short-term business finance to get you the fund you need for your business quickly.
But, if you’re just starting out, chances are you wouldn’t know how to choose the best short-term business finance lenders in the market, which in turn brings us to today’s article about our recommendation to get you started with getting your funds as soon as possible.
The first in our list for the best short-term business finance loan lenders is Fundbox. Fundbox is an online lender that offers business lines of credit, making it best suited for entrepreneurs that need to quickly fill a cash-flow gap for their businesses.
Fundbox is very good for people who:
- Need very fast cash
Fundbox funding is considered very fast if not one of the fastest in market right now with next business day funding. Making it very suitable for people that need fast cash.
- Don’t meet the requirements for other financing options
Fundbox only requires a minimum annual revenue of $50,000 and at least three months of invoicing history with a supported accounting software or business checking accounts.
There are a couple of reasons for you to choose Fundbox as your short-term business finance lender. Among them are:
- Fast access to funds
As soon as you’re approved, you can immediately request to get funds. Fundbox will usually transfer the cash to your bank account within one business day if your request was made before noon Pacific time.
- Easy to qualify
Fundbox only requires a minimum credit score of 500, which is of course than most online lenders out there.
But it also requires you to connect your accounting software and bank account. Don’t worry
Second in our best short-term business finance lender is Ondeck. OnDeck Capital provides speed, convenience and looser qualification than most shot-term business finance banks or lenders, but it may also charge you with a higher annual percentage rate than normal.
As such, OnDeck is good for your business if you:
- Have a less than stellar credit
The minimum personal credit score required for you to be able to qualify for their loan is 600, making it accessible to more people with less than stellar credit score.
- Have big unexpected expenses for your business
Thanks to the quick turnaround on OnDeck’s financing, it means you can get a cash in a pinch.
- Have uneven cash-flow
OnDeck’s line of credit may very well help you tide over during periods where you have low cash flow from your business.
- Fast and easy to use
OnDeck is an online lender, as such, their applications can be completed online, or over the phone in as little as ten minutes or so. You’ll need basic information to apply, which includes: your business tax ID, three months of bank statements, social security number, and driver’s license number.
If you’re approved for the loan, OnDeck’s loan advisor will reach out to you within one business day after completing the application form to review your offer and complete your online checkout.
- Looser qualifications compared to traditional banks
Traditional banks usually require collateral like your home, or other personal assets to secure a loan. OnDeck doesn’t.
Bank also typically requires your credit score to be 700 or higher, making getting loan from them impossible or hard to do if your credit score is anything below that. OnDeck meanwhile, only requires 600 as we’ve mentioned above.
Cheaper loans for repeat customers
OnDeck’s term loans have a one-time origination fee between 2.5% to 4% of the loan you borrowed on your first loan.
This fee then will drop to 1.25% to 3% on your second time getting a short-term business finance loan from them and then to 0% to 3% on your third and future loans. Making it suitable if you’re thinking of getting loan time and time again.
Last but not least in our 3 best short-term business finance loan lenders is Blue Vine. Online lender BlueVine offers small-business owners multiple loan options to help them solve short-term financing needs.
The company is also offering the latest round of Paycheck Protection Program loans to assist businesses affected by the Covid-19 Pandemic.
BlueVine’s line-of-credit, and/or term loan may be a solid pick for your business if you’re:
- In need of a fast cash
BlueVine’s funding typically takes 12 to 24 hours after approval, making it a good choice if you’re in need of a fast cash.
- Having a B2B customers who don’t pay on-time
BlueVine offers invoice factoring as part of their products, which may help you fill the cash gap left by your customers.
- Not meeting the requirements with other lenders
BlueVine doesn’t flatly reject customers with bad credit, so if you have a bad credit score and no other lender is willing to give out their loan to you, BlueVine might be your saving grace.
- You have to deal with unpaid invoices
If your customers are from other business or organizations, they probably don’t pay you promptly like they probably should’ve. BlueVoice’s invoice factoring can help you ease your cash flow hiccups that’s caused by these sorts of delays.
- You have a bad credit
There not much lender out there that considers a person with bad credit as their customer. Thankfully, BlueVine is not one of them because the company focuses on your business’ cash flow.
So even if you have a bad credit, chances are you might still be approved for a short-term business finance loan on BlueVine.
And with ends our article about three best short-term business finance loan lenders out there to help you with your business expenses, low cash flow, or if you’re just starting out as a business. It’s tough trying to make a living during the pandemic, so any sort of help is appreciated, and that’s true to anyone here writing or reading this article.
That’s all from us, thank you for reading it through the end, we hope you find the information in here useful, and we hope to see you again some other time.