Fundera business loans
Get connected with short-term funding, SBA loans, lines of credit and more.
| Features |
|
|---|
Emergency business loans can be a lifeline when unexpected financial challenges arise. Typically offered by online lenders, they feature low-doc applications, quick turnaround and flexible repayment terms. You can use them for virtually any purpose, including making payroll, fixing broken equipment or riding out seasonal cash flow slumps.
We break down the top six emergency business loans by category to help you choose the right type of funding for your situation.
9.6 Excellent
The Lendio marketplace has 75+ lending partners to help you find emergency funds quickly. Its partners offer a wide range of fast-turnaround term loans, such as merchant cash advances, business lines of credit, accounts receivable financing, equipment loans and more.
To get started, fill out a single online form with your information to connect with lenders who may offer you an emergency loan — even with a credit score as low as 580. But be prepared to receive a large number of marketing calls and emails afterward.
| Loan amount | $1,000 – $5,000,000 |
|---|---|
| APR | Varies by lender |
| Min. Credit Score | 580 |
| Loan amount | $1,000 – $5,000,000 |
|---|---|
| APR | Varies by lender |
| Min. Credit Score | 580 |
9.5 Excellent
Clearco is a fintech invoice financing company that works with e-commerce businesses. Clearco works by paying your outstanding invoices, and you pay Clearco back with smaller weekly repayments — freeing up vital cash in emergencies.
Clearco is best for e-commerce businesses with $10,000 in monthly revenue that need quick working capital. It accepts inventory, marketing, shipping and logistics invoices and uses a flat fee model based on your revenue, so you know exactly what your repayments will be.
| Loan amount | $5,000 – $1,800,000 |
|---|---|
| APR | A flat fee of 3.63% to 12.5% |
| Loan amount | $5,000 – $1,800,000 |
|---|---|
| APR | A flat fee of 3.63% to 12.5% |
9.2 Excellent
OnDeck offers fast-turnaround term loans that can be funded as soon as same day, depending on the state. While OnDeck is ideal for quick emergency funding, its rates can run high — with the company stating that its average term loan rate is 57.9% APR.
OnDeck only requires a minimum credit score of 625, but you must be in business for at least one year with $100,000 in annual revenue to qualify. There are no prepayment penalties on its term loans, so you can save on interest by paying off the loan early.
| Loan amount | $5,000 – $400,000 |
|---|---|
| APR | Average is 56.4% to 56.6%. |
| Min. Credit Score | 625 |
| Loan amount | $5,000 – $400,000 |
|---|---|
| APR | Average is 56.4% to 56.6%. |
| Min. Credit Score | 625 |
8.4 Great
Fundbox is a marketplace that focuses on lines of credit (LOCs). It offers fast-turnaround low-doc LOCs up to $250,000. To qualify, you need three months in business, $30,000 in annual revenue and a credit score of 600 or higher. But rates start at 4.66% for a 12-week repayment term or 8.99% for a 24-week repayment term.
However, its rates may be a fair tradeoff for newer businesses facing a cash flow emergency. You could receive a decision in as little as three minutes and funds as soon as the next business day. And you can borrow against the same line of credit without having to complete an application every time.
| Loan amount | $1,000 – $250,000 |
|---|---|
| APR | Starts at 4.66% |
| Min. Credit Score | 600 |
| Loan amount | $1,000 – $250,000 |
|---|---|
| APR | Starts at 4.66% |
| Min. Credit Score | 600 |
7.6 Great
Credibly offers merchant cash advances up to $600,000 with a factor rate of 1.11, making it one of the more affordable MCA options out there. And it's fast. Credibly states that it offers approval in as little as four hours and funding the same day if you're approved.
To qualify, you must be in business for at least six months and show $15,000 a month in average monthly bank deposits. Credibly gets overwhelmingly positive reviews on Trustpilot and only requires a 500 credit score to qualify.
| Loan amount | $5,000 to $600,000 |
|---|---|
| Starting Factor Rate | 1.11 |
| Min. Credit Score | 500 |
| Loan amount | $5,000 to $600,000 |
|---|---|
| Starting Factor Rate | 1.11 |
| Min. Credit Score | 500 |
If you have unpaid invoices you want to convert into quick emergency funds, altLINE is an invoice factoring company that offers up to 90% of the value of your outstanding invoices, up to $5 million. It serves business-to-business (B2B) industries, including small businesses, retail, manufacturing, trucking and more.
You'll pay a factoring rate typically between 0.5% and 5% and a filing fee of $150 to $500. Once altLINE collects on the invoices, you receive the rest of the value minus altLINE's factoring rate. Previous customers highly rate it on Trustpilot for its speed and service.
| Loan Amount | Up to 90% of outstanding invoices |
|---|---|
| Fee for Terms | 1% to 5% |
| Loan Amount | Up to 90% of outstanding invoices |
|---|---|
| Fee for Terms | 1% to 5% |
Our lending experts analyze dozens of business loan providers to narrow down the best options for business owners. We weigh lenders against 12 key metrics:
We also search for lenders that cater to a range of needs, including those that work with bad credit and newer business owners.
An emergency business loan is any type of fast business loan that can help business owners cover urgent, unforeseen expenses or disruptions like equipment breakdowns, cash flow shortages or even natural disasters.
There isn’t one type of business emergency loan. Emergency loans can include any type of quick-turnaround loan offering funds in a day or so, including term loans, lines of credit, merchant cash advances, invoice factoring and financing, as well as disaster loans from the SBA.
Here are the six main types of emergency business loans:
Business term loans come in short-term loan options and long-term loan options. It’s a fixed-rate lump sum loan repaid over a set period, typically from one to 10 years. Depending on the lender, rates can range from 6% to over 60% APR. With a term loan, interest starts accruing as soon as funds hit your bank account.
A business line of credit is a flexible form of revolving financing that allows you to access funds as needed, with repayment terms from one to two years. APRs typically range from 10% to 99%, but you only pay interest on what you actually borrow. Most lenders let you borrow against the line again as you pay it down.
MCAs allow you to borrow against your future credit card sales and are repaid as a percentage of daily receipts. Rates run high with MCAs, with APRs that can hit up to 350%, but they can be a lifeline for newer businesses or bad-credit borrowers who may not qualify for other types of loans.
Invoice financing uses your business’s unpaid invoices as collateral for a term loan from an invoice financing company. You can typically borrow up to 90% of your invoice’s value and pay a fee of between 1% and 5% rather than interest. With invoice financing, you retain control over your invoices.
Invoice factoring allows you to sell your unpaid invoices to a third-party factoring company at a discount. You get a portion of your invoices up front — usually around 80% to 95%. Then, you receive the rest of the invoice value when your client pays the factoring company minus a fee — usually called a discount rate.
An SBA disaster loan is a low-interest, long-term loan designed to help businesses recover from damage caused by a federally declared disaster. These loans offer up to $2 million in funding to businesses of all sizes to pay for losses not fully covered by insurance. You can apply for an SBA disaster loan on the SBA disaster assistance website.
Here are some pros and cons to consider before applying for an emergency business loan.
An emergency business loan can make sense when:
To get an emergency business loan, follow these steps:
Emergency business loans carry higher interest rates and fees than traditional bank loans. Right now, the average rate on a bank prime loan sits at 7.50%, according to the Federal Reserve, which is the rate commercial banks charge their best credit customers.
That means emergency loans charge rates several hundred basis points above that, with rates potentially ranging anywhere from 35% to 100% APR. Some emergency loan lenders also charge origination fees from 2% to 6%, which are deducted from the loan amount.
If you can’t find a business loan that works for you, try some alternatives:
The quickest way to get a business loan is through an online lender offering same-day or next-day funding, such as a merchant cash advance, business line of credit or short-term loan. To speed up approval, make sure you have the necessary documents on hand, like bank statements and revenue history.
Yes, it’s possible to get an emergency business loan with bad credit. Some lenders accept scores as low as 500 as long as you meet the other requirements. And some types of emergency funding, like invoice factoring and financing, don’t rely on credit scores.
To qualify for emergency financing for your business, you typically need a minimum credit score of 500 to 600, be in business for at least three to six months and show an annual business revenue between $30,000 and $100,000.
Most online lenders offering emergency business loans require a minimum credit score of 500 to 600.
Best financing options for trucking companies to cover licensing, new trucks, insurance, vehicle maintenance and more.
We look at eligibility requirements, potential costs, SBA options and more.
Compare $50,000 no-doc business loans for an expedited lending process.
Compare $5,000 business loans and what you need to qualify.
Compare different lenders to secure a $400,000 business loan with favorable terms.
Find a $40,000 business loan for your business and calculate the cost before you apply.
Buy real estate, another business or expand your enterprise.
You’ll have an easier time qualifying if you have strong credit and high revenue.
Find financing to grow your business — or even buy another.
Stay away from big banks for a loan of this size.