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Best Emergency Business Loans
BEST FOR SHORT-TERM LOANS
OnDeck
Why We Picked It
OnDeck was founded in 2006 and has since been a leading provider in the business lending space, offering both term loans and lines of credit. Today, they have extended $14 billion in funding to small businesses.
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan between $5,000 and $250,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Note: OnDeck does not lend to businesses in Nevada, North Dakota or South Dakota. What’s more, while it lends to over 700 industries, there are some industries it cannot serve.
Pros & Cons
- Term loans from $5,000 to $250,000; lines of credit up to $100,000
- Same-day funding
- Low minimum credit score requirement
- $100,000 minimum annual revenue requirement
- Must have been operating for at least one year
- Does not lend to businesses in Nevada, North Dakota or South Dakota.
Details
Eligibility: Prospective borrowers must have a minimum personal credit score of 625 to qualify for an OnDeck term loan or line of credit. Additionally, their business must have been in operation for at least one year and have annual gross revenue of at least $100,000. Applicants must also have an open business checking account.
Turnaround time: You can apply and receive a decision from OnDeck on the same day. What’s more, approved borrowers can have their funds in their bank account as early as the day they’re approved.
BEST FOR FLEXIBLE LINES OF CREDIT
BlueVine
Why We Picked It
BlueVine is a financial technology company that provides financing solutions to small businesses nationwide. It specifically specializes in business lines of credit and checking accounts. As of December 2021, BlueVine no longer offers invoice factoring as one of its financing methods.
Small business owners looking to access a line of credit on an as-needed basis can receive funds between $6,000 and $250,000. BlueVine offers two payment structures: Flex 6 or Flex 12. Customers who choose Flex 6 make weekly payments over 26 weeks while Flex 12 customers make monthly payments over 12 months. What’s more, after 45 days of payment on Flex 6, or 90 days of payment on Flex 12, you may be eligible for a credit line increase.
BlueVine also charges weekly or monthly fees for its line of credit. Standard pricing is 1.7% per week or 7% per month for line of credit draws.
Note: BlueVine’s line of credit is available in all 50 U.S. states except North and South Dakota.
Pros & Cons
- Businesses that have been in operation for at least 24 months are eligible
- Lines of credit up to $250,000
- Low credit score requirement
- No mobile app for its line of credit
- Monthly revenue requirement
- Not available to businesses in North and South Dakota, Puerto Rico and U.S. territories
Details
Eligibility: Eligibility varies on the specific program a business owner chooses.
Flex 6:
- Minimum personal credit score of 625
- Must have been in business for at least 24 months
- $40,000 per month in revenue or $480,000 annually
- Your business must be a corporation or LLC
- No bankruptcies within the last three years
Flex 12:
- Minimum personal credit score of 650
- Must have been in business for at least three years
- $80,000 per month in revenue or $960,000 annually
- Your business must be a corporation or LLC
Turnaround time: After you submit your application, you can receive a decision in as quickly as five minutes. If approved, you’ll receive your funds in your bank account within a few hours if you choose its $15 bank wire option. Choose its free ACH transfer option, and you’ll receive your funds within one to three business days.
BEST FOR SMALL TO MID-SIZED BUSINESSES
Credibly
APR range
Factor rates as low as 1.11
APR range
Factor rates as low as 1.11
Why We Picked It
Credibly is an online lending platform that supports both small and medium-sized businesses. It offers a wide variety of same-day business loans, including working capital loans, lines of credit, merchant cash advances and long-term loans.
While terms range depending on the specific loan type, business owners can access financing between $5,000 and $400,000. Each loan through Credibly offers same-day funding, helping business owners receive their funds quickly.
Pros & Cons
- Wide variety of loan products
- Low credit score requirement
- Fast funding times
- Lowest loan amount is $5,000
- Requires daily or weekly payments
Details
Eligibility: To qualify for financing through Credibly, business owners must have a minimum personal credit score of 500, be in business for at least six months and have at least $15,000 in average monthly bank deposits.
Turnaround times: Credibly offers same-day approvals and as soon as same-day funding once approved.
BEST FOR ESTABLISHED BUSINESSES
Funding Circle
Learn More
From participating partners via businessloans.com’s website.
Why We Picked It
Funding Circle has been a direct lender specializing in small business loans since 2010. Since its inception, it has helped 100,000 businesses in 700 industries and lent $15.2 billion globally. We chose Funding Circle because it provides fast, affordable loans with a simple application process and funding in as little as 48 hours. Prospective borrowers have three options: business term loan, line of credit or SBA loan.
Funding Circle term loans range from $25,000 to $500,000 with repayment terms from six months to five years. If you choose to apply for a business line of credit, you can access credit lines between $6,000 and $100,000. However, Funding Circle doesn’t specify its line of credit repayment terms. You can also apply for SBA loans, which range from $25,000 to $500,000 with terms up to 10 years.
There are two main drawbacks of Funding Circle. First, there’s a one-time origination fee on each loan ranging from 3.49% to 6.99% of the approved loan amount. Second, due to state lending regulations, Funding Circle does not lend to businesses that operate out of Nevada, making it available in only 49 of the 50 U.S. states.
Pros & Cons
- Loans up to $500,000
- Funding in as little as 48 hours
- No minimum annual revenue requirement
- One-time origination fee between 3.49% to 6.99% of the approved loan amount
- Requires two years in business
- Not available for Nevada businesses
Details
Eligibility: The minimum qualifications for a loan through Funding Circle are:
- Two years in business
- Minimum personal credit score of 660
- No personal bankruptcies amongst the business owners within the last seven years
- Not available in Nevada, due to state lending regulations
SBA loans, however, require two years in business, a minimum credit score of 650, a minimum annual revenue of at least $400,000, no current federal tax liens and that your business operates in one of the SBA’s eligible industries.
Turnaround time: Depending on the financing method you apply for, you can receive your funds within two to three days. However, SBA loans may take several weeks due to long underwriting turnaround times, which typically take up to three weeks.
BEST FOR EQUIPMENT FINANCING
Balboa Capital
Why We Picked It
Balboa Capital makes small business funding simple. Prospective borrowers are able to compare its various options, apply in minutes and, if approved, receive their funds as soon as the same day as approval.
Business owners can apply for a variety of business financing, including small business loans and equipment financing. Small business loans range from $5,000 to $250,000 while equipment financing tops out at $500,000. Commercial, vendor and franchise financing is also available with terms of $350,000 or $500,000, depending on the specific financing and collateral.
Pros & Cons
- Loans from $5,000 to $250,000
- Online application with quick funding
- May qualify with just a year in business
- $300,000 annual revenue requirement
- Not suited for new businesses
Details
Eligibility: You must be in business for at least one year, with $300,000 in revenue and a FICO score of 620 or higher to qualify.
Funding Time: In some cases, you may be able to apply and get funding within the same day.
Summary: Best Emergency Business Loans
Tips for Comparing Emergency Business Loans
When an unexpected business expense arises, having access to an emergency business loan can mean keeping your business afloat. Here are some tips to help you make an informed decision:
- Evaluate the cost of the loan. When comparing emergency business loans, look at the interest rate and other charges. Interest rates vary by lender and loan type but may be as high as 100%—especially for loans with fast funding speeds. Watch for other fees, such as origination fees, that may also increase your cost of borrowing.
- Consider repayment terms. Loan repayment terms can significantly impact your cash flow. A loan with a longer repayment term might have lower monthly payments, making it easier on your budget, but you may end up paying more in interest over the life of the loan. A business loan calculator can help you understand how loan terms impact the cost of borrowing.
- Assess the speed of funding. One of the most important factors when facing an emergency is how quickly you can access funds. Some lenders can disburse funds within 24 hours, while others take a few days or weeks.
- Check the lender’s reputation. When choosing a loan, don’t take the lender’s word for it—do your own due diligence. Read online reviews and ask for references to evaluate whether your lender is reputable and can support you throughout the loan term.
- Understand the loan’s flexibility. Some loans may have rigid repayment structures or penalties for early repayment. If you think you might want to pay off the loan early or adjust your repayment schedule, make sure you understand applicable restrictions or penalties.
What Are Emergency Business Loans?
Emergency business loans provide quick funding to businesses facing sudden and unforeseen expenses. These could include urgent repair of business equipment, sudden tax demands, unexpected shortages in cash flow or other immediate financial needs that could severely disrupt the operations if not addressed promptly.
These loans are typically short term, with repayment terms ranging from a few months to a few years. Even the best small business loans can take weeks or months to approve, while emergency business loans stand out for their speed and accessibility.
Lenders offering these loans have streamlined application processes that allow for fast approval and disbursement, often within 24 to 48 hours. You can get emergency business loans as term loans, lines of credit or cash advances, so you can choose which financing option works best for your business.
5 Types of Emergency Business Loans
Several types of emergency business loans are available to cater to businesses’ diverse financial needs and circumstances. Whether you’re looking to cover a temporary cash-flow gap or finance an unexpected expense, there’s likely an emergency loan type that is best for your business.
1. SBA Loans
SBA loans, available through banks and other lenders, offer assistance to small businesses in need of emergency funding. The SBA disaster loan program provides financial assistance to eligible homeowners, renters, nonprofits and small business owners to cover physical damage, mitigation, economic injury and other expenses.
SBA loans are best for small businesses with a solid credit history that can afford to wait longer for approval, as they can be more time-consuming than other emergency funding options. Despite longer processing times, the favorable terms, lower interest rates and longer repayment terms of SBA loans make them an attractive option for qualified businesses.
2. Business Line of Credit
A business line of credit is a flexible lending option that allows businesses to draw funds as needed, up to a certain limit. Funds may be used for many operational needs, including emergencies. It functions similarly to a credit card, with businesses only paying interest on the amount they draw.
Business lines of credit are especially beneficial for companies with fluctuating cash flow or seasonal businesses that may need funds to bridge periods of lower activity. That said, lenders typically require business borrowers to have a good credit history and sufficient revenue to qualify.
3. Invoice Factoring
Invoice factoring allows businesses to sell their outstanding invoices to a factoring company at a discount. The factoring company collects the full amount from customers when the invoice is due. This method is useful for companies with long invoice cycles that need quick cash access to cover unexpected expenses.
While the best factoring companies can provide immediate liquidity, the process also reduces the total income the business receives from those invoices. Invoice factoring is best suited for companies with reliable customers who pay their invoices in full but may have extended payment terms, such as 60 or 90 days.
4. Merchant Cash Advance
With a merchant cash advance (MCA), a business receives a lump sum of cash in exchange for a portion of its future credit card sales. The lender then takes a percentage of the business’s daily credit card income until the advance is paid off. MCAs are fast and accessible, with funds often available within a few days.
Still, it can be costly, with higher fees and shorter repayment terms than other types of loans. Therefore, it’s best suited for businesses with a high volume of consistent credit card sales that need immediate cash and can afford the higher cost for quick access to funds.
5. Working Capital Loan
Working capital loans are designed to finance the day-to-day operations of a company, such as payroll, rent or debt payments. This loan isn’t intended for long-term investments or expenses but rather to cover urgent operational costs.
Working capital loans are particularly beneficial for businesses with cyclical or irregular revenue patterns, such as retail businesses that peak during certain seasons or need to manage a gap between payable and receivable accounts.
Find the Best Small Business Loans of 2024
When To Get an Emergency Business Loan
Securing an emergency business loan can provide vital cash flow in a crisis, but it’s important to understand when getting an emergency business loan is a good fit.
- Unexpected equipment repairs. If essential machinery or equipment breaks down and brings operations to a halt, an emergency loan can help get things running again without substantial downtime.
- Sudden opportunities for expansion. A profitable opportunity may arise unexpectedly—like acquiring a competitor or a lucrative property deal. In such cases, an emergency business loan could provide quick funds to seize the opportunity.
- Cash flow interruptions. If there are unexpected disruptions in cash flow such as delayed payments from clients or a sudden drop in sales, an emergency business loan can provide the necessary cushion to maintain daily operations.
- Unforeseen expenditures. Costs like a sudden tax demand, surprise regulatory fees or unplanned operational expenses can be managed with an emergency business loan.
- Inventory management. An emergency loan can ensure you have the funds to manage your inventory effectively if a crucial supplier offers a limited-time bulk purchasing deal or if there’s a sudden spike in demand.
How To Get an Emergency Business Loan
The process for securing an emergency business loan varies by lender and loan type. However, there are some common steps you’ll likely need to follow, regardless of the financial institution.
- Identify your needs. Knowing exactly why you need the loan and the amount required will help you choose the financial product that best suits your situation. Be as specific as possible about the purpose of the loan—whether it’s for buying equipment, covering payroll or managing cash flow interruptions.
- Determine the type of loan you want. After identifying your needs, determine the type of emergency business loan that fits your requirements. Different types of loans come with various terms, interest rates and repayment structures.
- Prepare your financial documents. Most lenders require certain financial documents to assess your business’s financial health. These include bank statements, balance sheets, tax returns, and profit and loss statements. Having these documents ready in advance can significantly speed up the loan approval process.
- Apply for the loan. The application process varies depending on the lender, with some requiring applicants to meet with a loan officer. Complete the application as accurately and completely as possible to avoid delays.
- Wait for approval. After submitting your application, there will be a waiting period while the lender reviews your application. The length of this period depends on the lender and the type of loan. Some lenders provide approval within 24 hours, while others take longer.
- Accept loan terms. If your application is approved, the lender will provide an agreement outlining the loan terms, including the interest rate, repayment schedule and applicable fees or penalties. Once you accept the loan terms, the lender will disburse the funds.
Methodology
We reviewed 15 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders that offer same-day funding based on the weighting assigned to each category:
- Loan cost. 35%
- Loan details. 25%
- Customer experience. 20%
- Eligibility and accessibility. 10%
- Application process. 10%
Within each major category, we considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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