Short term loans are a convenient way to borrow some necessary money. You can use it for a variety of expenses, be it personal or professional. Here, the loan providers also disburse the amount directly to your bank account. Hence, you will be able to use the amount sooner.
What Are The Best Short-Term Loans For Businesses?
There are many short term loan providers. However, before you choose one, you should go through all the details of the loan. Here are some of the best loan providers in the US:
Top Five Short-Term Loans For Businesses
The following are some of the best short term loans that you must choose in 2024:
1. SoFi Personal Loans
SoFi offers loans from $5,000 to $100,000. However, to avail of the loan, you will have to show a credit score of 650. However, the amount of loan you can borrow can also change from state to state. Also, some prospective borrowers can submit joint applications for the loan.
| Pros | Cons |
| You will get loans pretty quickly They use soft credit checks for prequalification You will get lengthy terms for loansNo origination fees, payoff fees, and late fees You can get unemployment protection You can have more than one loan at a time | The lowest APR consists of origination fees Loan amount is low Low and below-average credit borrowers cannot qualify |
2. LightStream Personal Loans
LightStream also offers loans from $5,000 to $100,000. You can also get a 0.5% rate discount if you choose the autopay option. Apart from that, you also get a 30-day loan experience guarantee.
| Pros | Cons |
| You can avail of same-day funding with ACH or wire transfer No origination fees, payoff fees, and late fees For every loan, the company plants a tree | You will need to show a strong credit history There are no options to pay your creditors directly No student loans or business loans are available Pre-approval on the website is not available |
3. Avant Personal Loans
One of the best things about Avant is that you can get the loan in the next business day after approval. Furthermore, the range of loans is from $2,000 to $35,000. Also, loans are available for people with low credit scores (<600).
| Pros | Cons |
| Applicants with low credit scores can also avail of loans There are no early payoff fees Prequalification is available with a soft credit check Funding is quite fast You can get a grace period of ten days for late payments | There is an origination fee for loans The rate of interest is quite highAutopay APR discount is not available There are no options to pay your creditors directly There is no option for co-signers |
4. PenFed Personal Loans
PenFed, being a federal credit union, provides a lot of loan options for debt consolidation. Apart from that, it also offers loans for medical expenses, home improvement, auto financing, and many other options.
| Pros | Cons |
| Anyone can get a credit union membership You can get loans as low as $600You can also physically pick up a loan A co-borrower can also apply with you | You will receive the funds in the form of a physical check You have to become a member to receive funds The maximum loan amount is only $50,000There are late fees |
5. Upgrade
The loan amounts from Upgrade range from $1,000 to $50,000. Also, the loan provider does not offer you a prepayment penalty. Hence, if you pay off your loan early, you will be able to reduce the overall cost of the loan.
| Pros | Cons |
| No high credit score is needed You can use the loan for various business expenses You can get direct lender payoff for debt consolidation loans | The APR range is pretty highThere are fees for origination. There are no late payment fees or fees for insufficient funds |
Other Short Term Loans You Must Consider
Here are a few other great short term loan options that you must consider:
1. Wells Fargo
According to the Forbes Advisor,
“Wells Fargo offers fixed-rate personal loans with limits between $3,000 to $100,000 and repayment terms from 12 to 84 months. While longer-term lengths, such as 84 months, will decrease your fixed monthly payment, you will pay more interest over the life of your loan compared to a loan with terms of, let’s say, 12 months.”
| Pros | Cons |
| You can receive the funds pretty quickly If you enroll in autopay, you will receive a 0.25% discount There are no prepayment penalties or origination fees | To receive the discount, you need to have a Wells Fargo account To apply for a new loan, you will need to visit a nearby branch There are no options for prequalification |
2. Upstart
LendingTree.com explains –
“Upstart is an online platform that connects borrowers with partner lenders. It considers more than its applicants’ credit scores and instead uses an AI-powered algorithm to evaluate consumers’ education, income, employment status, financial history, and identity. The platform states that this model helps approve applicants that would have otherwise been denied.”
| Pros | Cons |
| People with no credit or bad credit can apply for a loan The minimum APR is lowGood customer service | Origination fees are high There are only two term lengthsThey charge 5% for unpaid amounts or $15 (whichever is greater) |
3. Lending Point
This loan provider offers loans from $2,000 to $36,500. Here, the repayment terms are quite high. However, the loans are available for only 48 states.
| Pros | Cons |
| You will get quick funding The credit score requirement is low You will not have to deal with a prepayment penalty | High origination fees There are no options for co-signers or joint loans Loans are not available in Nevada and West Virginia |
4. OneMain Financial Personal Loans
According to CNBC –
“While not required, applicants who don’t qualify for an unsecured personal loan with OneMain Financial may be offered a secured loan. A secured loan lets borrowers who want to use the equity from their car potentially qualify for lower interest that way. Rates, repayment terms, and agreements vary by individual and the state in which apply.”
| Pros | Cons |
| Applicants with no or bad credit can apply There are no Payoff fees You can prequalify with a soft credit check | Origination fees are high High-interest rates |
Wrapping Up
Hope this article was helpful for you in getting to know about the best short term loans in the United States. However, before you choose a loan provider, go through all the pros and cons for the same.
Do you know of some more good loan providers? Share some names with us in the comments section below.
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