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Key takeaways
- Online lenders tend to specialize in short-term loans and can provide funds quickly.
- Banks offer better rates and terms than online lenders, but their application process and funding times are slower.
- Some online lenders can analyze your documents and approve your loan in minutes and may even offer same-day funding.
Short-term business loans can provide a business a financial lifeline, but getting access to the funds that fits your timeline may come with challenges. The lender you select is one of the biggest factors determining how quickly you have access to funds. In general, online lenders typically offer faster funding times compared to traditional banks. While it can take as little as 24 hours to get a short-term loan with an online lender, banks can take days or even weeks to fund.
How long does it take to get short-term business loans from a bank?
Getting a short-term business loan from a bank can take a week or more to receive funding. The longer processing time may be due to additional documentation that the bank requires and a more thorough vetting process to approve your loan.
If you have flexibility in funding times, waiting may be to your advantage. Bank loans and business lines of credit tend to have better rates and terms than online lenders. You can visit in person to get personalized help and more easily streamline your banking by having a business checking account and loans with the same institution.
Bank loans often have a lot of flexibility. Repayment terms for term loans typically start at 12 months, but you may also be able to choose a longer term of up to 60 months, which can make the monthly payments more manageable. You can then decide to pay the loan off early, though you should check to make sure there are no prepayment penalties.
On the downside, banks don’t offer many loan details on their website. This makes it harder to compare the loan terms without applying or at least getting pre-approved.
Banks with short-term business loans
Two major banks that offer business loans with the potential for short-term borrowing are Wells Fargo and Bank of America.
How long does it take to get a short-term business loan from an online lender?
Online lenders tend to specialize in short-term business loans, which is an advantage. They advertise their approval and funding timelines, usually within 24 to 48 hours, and some online lenders will fund your business loan the same day you apply. They typically have a streamlined online application process that can analyze your documents and approve your loan in minutes. The main disadvantage is these lenders may charge higher interest rates and loan fees than a traditional bank loan.
Online lenders with short-term business loans
If you’re looking for fast short-term business loans that can provide funds quickly, here’s a look at five top lenders.
Make sure you convert loans with factor rates to an interest rate and then use a business calculator to compare the total costs of each. Our guide can help.
Bottom line
The fastest way to get a short-term business loan is through an online lender. What you sacrifice in physical banking locations, these lenders can make up for in fast funding and a streamlined process. Yet, big banks offer greater flexibility, and they often have better rates. Depending on your needs, one of these options may be a better fit. Be sure to research different lenders to make the right decision for your business.
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