Understanding a Short Term Business Lending
Think smartly, act quickly. Surprises may be just around the corner.
Short Term Lending
A short-term business loan is used to provide small businesses with quick access to funding to meet short-term capital needs. Typically, short-term business loans are used to manage cash flow, deal with emergencies and unexpected opportunities, and bridge larger financing solutions.
Typically, a short-term business loan has a term of one year or less (sometimes 18 months or less) and is structured as a lump sum loan with daily or weekly repayments. Compared to other business loans, short-term loans often have smaller loan amounts and higher interest rates, but are funded much more quickly.
Although some banks offer this type of financing, short-term loans for small businesses are usually available from alternative online lenders. In this way, short-term loans with streamlined application processes, fast funding, and flexible requirements are a good option for a variety of small businesses with a range of short-term financing needs.
MAX LOAN AMOUNT:
Up to $250,000
3 to 18 months
Starting at ~10%
Limited paperwork required for application and fast to fund
More flexible requirements than other business loans
Suitable for a wide range of business purposes
Interest rates are often higher than
Repayment is often daily or weekly as
opposed to monthly
Frequent payment schedule can impede cash flow