The Best Short Term Loans For Businesses In 2024

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The Best Short Term Loans For Businesses In 2024

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.

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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 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.

ProsCons
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.

ProsCons
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

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).

ProsCons
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.

ProsCons
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.

ProsCons
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

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.”

ProsCons
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

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.”

ProsCons
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

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.

ProsCons
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.”

ProsCons
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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