What is a Short Term Business Loan?

Short term business loans are a valuable tool for small businesses or start-ups that need business capital quickly and are easier to qualify for than traditional loans.  Without sufficient funding, many companies would struggle or be forced to close their doors completely. In most cases, short term business loans must be repaid by a given due date which is usually within 1 year but can be as long as 18 months, anything longer than 18 months would be considered a medium-term or long term loan.

Types of Short Term Business Loans

Merchant Cash Advance

A type of short term business loan called a merchant cash advance is not really an actual “loan” unless you consider your credit to be the same as money. Despite its confusing name, this kind of short-term funding works like any other traditional loan: The lender loans out funds and requires repayment with interest over time. However, in contrast to most loans where payments are made on specific dates or after receiving income from employment or another source (like investments), these payouts depend instead upon customer purchases that happen at merchants who use similar services.

• Receive up to $500k with a merchant cash advance
• Factor rates as low as 1.15
• Access to business funding in as little as 24 hours
• All credit scores are considered
• Qualify for 85-250% of your monthly credit card sales
• Repayment based on daily credit card revenue and gross bank deposits

Working Capital Loan

Working Capitalcan help you take care of immediate needs in your business, whether that is a cash-flow shortfall or a new business opportunity. No collateral is required for our working capital loans or short-term funding, the required documentation is limited, and perfect credit is not needed. Nearly every industry can get a working capital loan.

Working capital loans are perfect for business owners who need short-term funding to grow. Working capital loans are simple, fast, and affordable and are designed to help with seasonal shortcomings with revenue or the need to boost inventory.

• Receive up to $500k in working capital
• Factor rates as low as 1.15
• Easy business loan application process
• Flexible loan repayment
• 6 to a 24-month loan term

Lines of Credit

A line of credit is very similar to a business credit card, except that there are no monthly installments. Lines of credits have an initial limit, but individual purchases can be made up until the entire loan amount has been used. These lines include lower APRs compared with traditional loans and allow you to borrow money as needed during slow periods or unexpected costs while having more flexibility in making payments when your company experiences high growth rates.

• Receive up to $250k with a business line of credit
• Business lines of credit rates as low as 6% 
• Only pay interest on funds drawn
• Credit is available when needed
• Nearly every industry-accepted
• Apply for loans online and link your business information securely

Online business loans

Businesses can quickly apply for and receive short term loans by doing everything online. Business owners can access their funds within minutes, after receiving approval from the lender through a simple application process.

Online business loans make it easy for companies of all sizes to get funding when they need it most because almost everything is done electronically – including applications, approvals, and wire transfers that send money into your account immediately following an approved business loan offer.

Invoice Financing

Invoice financing is a short term business loan that uses accounts receivables from unpaid customers. The lender loans the money and charges interest based on how many weeks invoices remain outstanding. When an invoice gets paid, they interrupt payment of the invoice to take out what was charged in interest before returning it back to the borrower.

• Competitive receivable financing rates with same day decisions
• Improve Cash Flow Without Incurring Debt
• Factoring Outstanding Receivables up to $2.5 MM

Business Loans for Bad Credit

we have bad credit business funding options for business owners with bad credit. Bad credit shouldn’t affect your ability to receive a small business loan so our loan advisors take look at your business revenue and potential, rather than your credit score to find alternative lending options for your business.

• 90% approval rates with business loans for bad credit
• hassle-free application process
• All credit scores are considered

Advantages of Short Term Business Loans

Faster Business Funding

Short term loans can help you get quick access to funds that meet your needs. These types of business loans are considered less risky for borrowers because they’re shorter in length and have a set maturity date, which allows the borrower’s ability to repay the loan more stability over time. Because lenders’ underwriting processes take less time with these kinds of loans compared to longer-term ones, it gives you an opportunity as a borrower to receive business funding faster.

Easy Business Funding

Short term business loans don’t require the borrower to jump through as many hoops. Short term business loans are great for small businesses and individuals with bad credit because they’re easy to get compared to other types of longer-term ones. They also have lower requirements as the amount borrowed is usually much smaller than a long one which requires higher scores.

Reduced Documentation

Short Term Business Loans have many benefits for borrowers, including reduced documentation. With traditional loans, there is more red tape that needs to be cut through before approval, but with shorter term options the process becomes much simpler. If you are looking for a loan and want something less risky, I would recommend seeking out short term options as opposed to standard ones which take longer time periods of repayment.

What Are Some Reasons businesses Acquire Short Term Business Loans?

• Emergency capital
• Covid 19 Assistance
• Working Capital
• Inventory/Supply
• Cash Flow shortages
• Expansion
• Advertising/Marketing/Customer Acquisition
• Small Equipment Purchases
• Business Opportunity

How can I apply for a short term business loan?

Capital for Business offers short term business loans in its marketplace of over 175+ lenders, that are easy to apply for. After filling out a simple online application, they will reach out and learn more about your business so you can get the money you need quickly.