When a bank turns down your loan application, your business might not be the problem. It often comes down to the lender’s approval process.
Traditional lenders typically start underwriting by looking at your credit and financial history. So, applications from businesses with a low credit score or limited operating history may get automatically sent to the rejection pile. But fintech platforms take a different approach. These lenders use technology to evaluate your business’s day-to-day performance rather than relying solely on your credit score.
When you’re looking for short-term commercial loans and a bank says no, consider fintech lenders that consider your cash flow.
How Fintech Lenders Evaluate Your Cash Flow
Modern technology makes cash flow-based underwriting much simpler. Online lenders can link to your bank account or accounting software to analyze the real-time pattern of money going in and out of your business. Automated models compare this data with that of thousands of similar businesses to determine how your business is actually performing.
Because computers can review data much faster than people can manually check documents, cash flow-based underwriting is often faster than traditional approaches. Many fintech lenders can approve an application in a day or two, and some even offer same-day approvals and funding.
This approach to lending also opens financing up to more businesses. A newer company or one with a thinner credit file can make a strong case for funding based on the business’s actual performance. And where a traditional bank might penalize your business for a dip in revenue from two years ago, cash flow-based underwriting looks at the trend line for recovery and growth.
Top Fintech Lenders for Short-Term Capital
Whether you are looking for more accessible financing or faster funding, working with a fintech platform can offer options beyond traditional lenders and banks. The following companies are among the top working capital lenders for short-term capital. Each is different, so consider which of their approaches and products work best for your business needs.
1. Cardiff
Cardiff bases its underwriting on your Business Health Score, which considers your cash flow, the quality of your revenue, your industry experience, your time in business, and your credit score. Businesses with as little as 12 months of operational history and a credit score as low as 550 can secure a no-collateral small business loan.1
Cardiff connects to your real-time financial information through Plaid as part of their online application.2 They then use automation and data-driven analysis to evaluate your loan request quickly.1 Businesses can often apply in less than four minutes, receive a decision in less than five minutes, and may receive funds that same day.2
Along with tech-driven speed, Cardiff assigns you a dedicated loan advisor. This financing expert supports you throughout your funding journey, answering questions and helping you choose a repayment structure that fits your business.1
2. Kapitus
Because of its ability to provide millions of dollars of capital, Kapitus tends to attract more established businesses than other fintech lenders.4 The average minimum requirements are two years in business, a 625 credit score, and $250,000 in annual revenue, though actual requirements vary by product.3
But if you want to compare multiple types of short-term financing at once, look at Kapitus. You fill out a single application, which takes as little as ten minutes, and can receive up to six funding offers in as little as four hours.4 These offers include different products through Kapitus as well as other financing companies in their network of trusted lenders.3
3. Credibly
Credibly uses technology and a soft credit pull to pre-qualify owners for business loans. It focuses on your overall business health, accepting businesses with more than six months in business, credit scores over 500, regular deposits in a business checking account, and $15,000 in monthly revenue. You can receive an approval in as little as two hours after you apply.5
Once approved, you connect with a funding specialist to discuss the best product for your situation. You can then complete the funding process on your own timeline via Credibly’s secure, state-of-the-art online checkout. Once you’ve accepted the financing, you can secure funds in as little as four hours.5
4. Fora Financial
Applying to Fora Financial only takes your three most recent bank statements and a one-page application, which you can typically complete within minutes.6 A capital specialist then calls to discuss your funding request.7
This lender then looks at your growth potential rather than a single data point.7 Fora Financial typically works with companies that earn more than $20,000 a month in gross sales and requires businesses to have more than six months of operational history. You need to show how you plan to use your loan and that you can handle repayments.6
5. BriteCap Financial
BriteCap Financial allows you to apply from any device, at any time, or on any day. The online application doesn’t require any paperwork and only takes about two minutes to complete. With a cash-flow-based evaluation, BriteCap’s team reviews your data to craft personalized terms.8
Your dedicated funding consultant then walks you through every detail of your financing. BriteCap Financial can fund up to $1 million directly to your account on the same day you’re approved once you accept an offer.8
Find a Lender that Matches Your Cash Flow
Every lender on this list leverages technology and evaluates cash flow a little differently. The right one for your business depends on your business tenure, funding speed, financing needs, and repayment structure.
The tradeoff for quick working capital is usually cost. Fast, cash-flow-based financing often carries a higher price than a conventional bank loan, so it tends to make the most sense when speed and accessibility are priorities. If you need to pay your team, cover a seasonal slowdown, seize growth opportunities, and protect your operating budget, short-term funding can be worth the cost.
When your situation calls for working capital, compare some of the top fintech lenders rather than applying with the first lender you find. It’s the fastest way to land on financing that fits how your business earns.
Sources:
1https://cardiff.co/business-loans/products/working-capital-loans/
2https://cardiff.co/
3https://kapitus.com/products-services/
4https://kapitus.com/the-kapitus-difference/
5https://www.credibly.com/
6https://www.forafinancial.com/blog/working-capital/bank-loan-requirements-vs-fora-financial/
7https://www.forafinancial.com/
8https://www.britecap.com/how-it-works