Non-bank online lenders
Short-Term Loan (6–18 Month) Review 2026
Updated August 24, 2026
Fixed repayment over 6–18 months — cheaper than MCA, accessible to 580+ FICO.
Quick answer
A 6–18 month short-term loan funds at 580+ FICO with 6–12 months of revenue history, up to $250K (sweet spot $25K–$150K), typically at 25%–60% APR — meaningfully cheaper than an MCA for the same amount. Funding takes 2–5 business days with a fixed weekly or monthly payment, and on-time payments can build business credit if the lender reports to bureaus.
Who Short-Term Loan (6–18 Month) is best for
Borrowers with a defined capital need who can document 6–12 months of consistent revenue.
At a glance
- Min FICO accepted
- 580+
- Typical APR range
- 25%–60%
- Max loan amount
- $250K
- Qualification realism
- Moderate
Some lenders at 560+; credit profile affects rate, not just approval
For sub-660 FICO profiles; better credit earns lower rates within the range
Sweet spot is $25K–$150K for sub-660-FICO borrowers
Revenue consistency + bank statements + reasonable FICO required
Pros
- +Meaningfully lower effective cost than an MCA for the same advance amount
- +Fixed weekly or monthly payment is more predictable than MCA holdback
- +Faster to fund than a bank loan — typically 2–5 business days
- +Builds business credit history if the lender reports to business bureaus
- +Prepayment is typically permitted without a penalty at reputable lenders
Cons
- −APR is still high relative to bank products — evaluate against the return on the use of funds
- −Higher periodic payment burden than a longer-term bank loan
- −Some lenders use factor-rate pricing — prepayment may not reduce total cost
Short-Term Loan (6–18 Month) requirements
- 580+ personal FICO
- 6–12 months TIB
- Verifiable monthly revenue (bank statements)
- Business bank account required
◆ ClearValue platform data
Where short-term loans fit in a fast-changing lending market
A short-term loan like this one competes in a lending market that's shifted quickly toward non-bank options. The Federal Reserve Banks' 2025 Small Business Credit Survey found that 29% of applicants sought financing from an online or fintech lender in 2025, up from 17% of applicants in the 2020 survey — a jump that tracks closely with the growth of bad-credit-friendly short-term products like this one.
That shift matters most for borrowers who don't qualify at a bank: the same survey found online and alternative lenders approved a meaningfully larger share of applications than large banks did, which is exactly the gap a 6–18 month short-term loan is built to fill. The tradeoff is cost and repayment structure — read the daily or weekly draw terms carefully before signing, since that's where a short-term loan's real price shows up, not just the headline rate.
Primary sources: Federal Reserve Banks — 2026 Report on Employer Firms (2025 Small Business Credit Survey)
Figures are from the Federal Reserve Banks' 2025 Small Business Credit Survey (national sample of employer firms). Individual approval odds depend on your file, lender, and product — not every applicant qualifies at either bank or alternative-lender rates cited here.
Short-Term Loan (6–18 Month) alternatives
Top alternatives worth comparing from Best Business Loans for Bad Credit 2026.
Non-bank alternative lenders
Revenue-Based Financing (MCA)
Businesses with consistent daily or weekly revenue who need cash in 24–72 hours and have exhausted cheaper options.
Fintech and specialty non-bank lenders
Revenue-Based Financing (Non-MCA structure)
SaaS and subscription businesses where bank underwriting ignores predictable recurring revenue.
Factoring companies
Invoice Factoring
B2B businesses with slow-paying commercial customers and clean accounts receivable.
Ready to apply?
Application takes minutes. Pre-qualification (where available) uses a soft credit pull with no impact to your credit score.
See if you qualify→Last verified at the issuer on 2026-08-24
The full lineup
See all picks in Best Business Loans for Bad Credit 2026
Editorial methodology + complete ranking criteria + side-by-side comparison of all picks.
Read the full guide →Bottom line
Short-Term Loan (6–18 Month) scores 4.1 / 5 on the ClearValue Rating — a deterministic editorial composite from the product's own published fees, terms, and eligibility. Best for: Borrowers with a defined capital need who can document 6–12 months of consistent revenue.
◆ How we scored it
The ClearValue Rating, broken down.
- Cost
- 35%
- Fit & approval odds
- 30%
- Speed & terms
- 20%
- Transparency
- 15%
Cost (35%), Fit & approval odds (30%), Speed & terms (20%), Transparency (15%) — scored consistently across every product, independent of compensation. Full methodology →
Frequently asked
Questions about Short-Term Loan (6–18 Month)
Who is a short-term business loan best for?+
It fits borrowers with a defined capital need who can document 6–12 months of consistent revenue. With a 580+ FICO floor and a typical APR range of 25%–60% for sub-660 profiles, it's a mid-range-cost option that's meaningfully cheaper than an MCA for the same advance.
What credit profile does a short-term loan target?+
The data shows a 580+ minimum personal FICO accepted (some lenders go to 560+), with credit profile affecting the rate within the 25%–60% range rather than just approval. Lenders also weigh revenue consistency and bank statements.
How much can I borrow and how fast does it fund?+
Max loan amount is listed at $250K, with the typical sweet spot of $25K–$150K for sub-660-FICO borrowers. Funding is usually 2–5 business days — faster than a bank loan.
How does the cost compare to a merchant cash advance?+
A short-term loan carries a meaningfully lower effective cost than an MCA for the same advance amount, and its fixed weekly or monthly payment is more predictable than MCA holdback. That said, the APR is still high relative to bank products, so weigh it against the return on the use of funds.
Can I pay it off early without a penalty?+
At reputable lenders, prepayment is typically permitted without a penalty. Note that some lenders use factor-rate pricing, in which case prepayment may not reduce total cost — confirm the pricing structure with the lender before signing.
How do I apply?+
You can start an application through ClearValue Lending's apply portal. ClearValue is a financial-decisions platform, not the lender — you'll want a 580+ FICO, 6–12 months in business, verifiable monthly revenue via bank statements, and an active business bank account.
Related guides
Independent editorial review. ClearValue Lending is a business & personal financing platform — not a lender, broker, or financial advisor. Some links are affiliate links; the issuer may pay a referral commission at no cost to you, which never changes the score. Specific product terms vary; verify with the issuer before applying. See privacy policy.