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Short-term Business Loans

  • Compare loans in a few minutes
  • Business of any size can qualify
  • Flexible short-term business loan terms
  • Instant access to your loan deal
  • Loans with soft credit check

Short-term business loans up to £250K for immediate needs

You may be running a small business in a small place with local customers only to attract. Your profit margin will be less than other established ventures. You want to explore opportunities to expand your local business to acquire regional identity. You can do it, but may need quick cash to grab this opportunity.

Unfortunately, small businesses usually struggle with debts, restricting them from getting long-term benefits. Still, you need some sort of business financing at different levels to grow your business. It happens with any small or long-running enterprises. Options like commercial mortgages or long-term business loans are available, but small businesses may not qualify for them.

In such a scenario, short-term business loans back the small businesses in their endeavours. These loans are available from banks, financial institutions and online lending options. However, mainstream lenders may not show interest in funding your small business. Online lending firms may be a viable option to consider.

How can you decide which lender offers these loans best? Do not take more time to think about it. Thebusinessfunds is here to understand your needs and stand with your deeds. We are specialist short-term business finance brokers and are always ready with a comprehensive list of lenders providing short-term business financing on flexible norms.

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Do you want to go through our lenders’ list now? Share your requirements here.

What is a short-term business loan?

A short-term business loan is a kind of business financing for small, medium or even large-scale businesses. In the loan process, an enterprise avails a lump sum amount, which it needs to pay back throughout the life of the loan in monthly instalments.

You can get these short-term loans in the UK between 6 and 36 months. However, it depends upon individual lender’s norms. As far as rates are concerned, you have to contact a lender, but the interest rates are likely higher than longer-duration loans for businesses. Remember, short-term financing is available for certain companies in specific financial conditions.

For instance, these small loans suit more established businesses than those that have just started. They have better returns to pay the higher interest rates and get the amount to avoid interruption in the cash flow.

- How does a short-term business loan work?

Short-term business funding is specifically tailor-made to bring working capital for small business firms requiring one lump sum amount. After approving your application, the lender will disburse the loan amount to your business bank account. Once received, you can use the funds to fulfil your business needs.

The availability of short-term business loans is better than the longer-term loans. You can submit your loan application online, and the lender feels safe allowing smaller funding for a shorter duration.

At Thebusinessfunds, bespoke loan options are accessible from reliable lenders in the UK. You can get the best rates available with no surprising fees. Moreover, our lenders may offer loans beyond the credit score limit, but you must communicate directly with your lender.

What are the advantages of quick short-term business loans?

Instant short-term business loans may be expensive, and many businesses assume they are negative funding. It is not their fault. Rather, some business owners have made mistakes where they did apply but without any preparation. Still, you cannot underestimate the advantages of short-term loans for different types of businesses.

Below, we explain why these loans make sense for your company.

  • Prospects to generate more revenue

    Suppose your small company has received a big project from a renowned client asking for a large order. Indeed, this will be bigger than an individual project. You cannot lose this opportunity because grabbing it will take your business to a higher level. One constraint can be there, and it is quick financing. These fast business loans are the only alternative to getting the needed funds immediately for that major project.

    Therefore, you should see these loans as growth capital business loans and investment opportunities to grow your trade.

  • Adequate amount of lenders available

    It is another advantage of business loans with shorter duration. For the last few years, banks in the UK have reduced their small loan options. They may have their obligations, but online lending companies have recently filled that gap. They are more prone to quick and small funding for any business.

    In the past, small companies had to approach banks only and were obliged to follow their terms, rates and other norms. Nowadays, digital lending has broadened the sphere for funding small-scale enterprises. We also have an online tool to compare rates of different lenders so that you can quickly find your loan options and get the funds.

  • Suitable option during financial emergencies

    As you are already running a business, you must know that ups and downs are part of your commercial journey. Small businesses often struggle to keep their cash flow steady compared to bigger firms. The reason is obvious: Their funding sources are limited, and chances of financial emergencies will always be there.

Quick short-term business loans pave the way for a company facing surprising expenses to get funds without delay. These loans involve less documentation than standard loans with fewer obligations to follow.

Where can you use short-term business finance?

Most business owners remain confused about where to use the borrowed funds, will the lender offers loans for any business purpose, or whether there are any restrictions. Developing your knowledge of the UK business loan marketplace is sometimes good. You can use short-term business finance for anything, but it does not mean it benefits every investment.

These loans are useful if you see them as a funding source for small and quick cash injection to your cash flow problem. They are also useful in a surprising investment opportunity.

Here are the best places where you should go for business short-term loans.

growth capital loans
Business Expansion

You have already established your company at a location. Now, you have to expand it by locating another branch at another location. It is where these loans come useful.

Marketing and Advertisement

For any business, advertising and marketing products become more important. If you need a funding backup, these loans can help with instant funding to advertise your products.

Purchasing Inventory

As you see, your company is growing rapidly, and the time is to raise your inventory to attract more customers. This small inventory finance can be beneficial in one-time purchases.

Improvement or renovation

Business loans for smaller terms can be used for renovating or improving your office premises. This can be costly for a small company, but you can successfully perform it with loans.

Hiring more Staff

If you have limited staff but need more to increase the productivity and the projects of more clients, you can manage such expenses of wages or hiring staff with these small loans.

Paying rent

You have to pay rent if you have a rental office location. It is sometimes difficult to manage when there are some blocks to cash flow. Here, these loans prove handy for paying the office rent.

What determines the total cost of short-term business funding?

Small business owners have to face many challenges to get funding from traditional lenders like banks or even from modern-day lenders. Many loan providers assume businesses with limited returns or space lack the resources to manage loan interest rates. They face more financial hardships than large-scale businesses. Lenders feel risky in funding them and sometimes put higher interest rates before them.

As the business finance broker, Thebusinessfunds is responsible for finding only those lenders who can offer low-interest rates to small business owners. They do not involve any hidden fees. It will be beneficial because you prevent yourself from being trapped in advertisements. Since short-term loans have higher rates but are still less expensive, our lenders do not ask for any surprising fees.

The interest rates may differ from lender to lender, but generally, the average interest rates may be as follows:

  • Mainstream bank loans - 3% to 15%
  • Online business loan lenders - 5% to 60%

There is one more vital aspect of short-term business loan cost. Lenders offer these loans on two types of interest rates: fixed and flexible. In the UK, some lending firms offer fixed interest rates while some stay flexible while providing these loans.

Fixed Interest Rate Loan: Under this procedure, the interest rate will remain unchanged throughout the loan schedule. It is the rate you agreed to in the initial stage of the loan procedure.

Flexible Interest Rate Loan: The interest rate will change according to market trends. It means you may pay a lower interest rate in between the loan terms, but at the same time, you have to pay more interest if the average market rate goes higher.

As your finance partner, we suggest you stay on a fixed-rate loan. A little increase in the interest rate may imbalance your business finances. Variable or flexible rates may be suitable when you know your returns. Whatever you decide, you can share your priorities with us, and we will discover loan deals accordingly.

What are the alternatives to a short-term business loan?

If you want more than a short-term loan, you can apply for business loans available as an alternative. These are also accessible for shorter durations and amounts and come beneficial in fetching instant funding.

Equipment Finance

If your application has been successfully accepted, you can get equipment finance from top lenders on the same day. We can ensure the deals are available at the best rates and terms. You must place a business asset as the collateral and get funds to purchase new equipment.

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Unsecured Business Loans

Unsecured loans are primarily short-term loans where no security is needed and available for a short duration. The maximum loan term may remain up to 12 months, and you have flexible repayment modes like weekly or monthly. Show your bank statements for the last 3 months, and the lender may instantly approve your application.

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Invoice Finance

It can also be an alternative to short-term business loans. You can borrow up to 90% of the value of your invoices. It is a perfect alternative for businesses wanting to repay it for 3 months maximum. However, you have to use invoices as loan collateral. We have top lenders available to apply for invoice finance.

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Trade Finance

Trade finance may be the most suitable alternative to business short-term loans. These are also unsecured loans where no asset is required to secure the loan amount. You can use the borrowed sum for any trading activity to grow your business. You can approach us anytime to find the relevant deals available on trade finance.

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Why does Thebusinessfunds search for short-term business loans?

There are many instances where a short-term business loan is effective to meet urgent business needs or to boost the cash flow. The quicker you get a loan, the better your chances of getting funding at reasonable rates. For this, you have to do research.

Why not give this task to short-term business finance brokers and keep concentrating on your business activities? Thebusinessfunds is already here to perform that task for you. We will filter our search according to your priorities and select only lenders willing to offer you an affordable business loan. We go through step-by-step in our loan search, as it will allow us to find the relevant lenders matching your current business finance situations.

Compare short-term business loans with us because our experts are technologically advanced. They can find out different types of loans and compare lenders within a few minutes. Our service goes further with other business funding products such as secured business loans, e-commerce finance, commercial property finance, etc.

To know more, call our representative anytime or search for the best deal by clicking below.

Find your loan here

FAQs

What are the disadvantages of a short-term business financing?

You should consider the following disadvantages of a short-term business loan before applying:-

Higher monthly instalments: Small loans may have shorter terms, but the monthly repayments are higher. Besides, the overall interest rates will be lower, but paying high instalments can be a problem during unsettled cash flow.

High-interest rates: One drawback always remains with smaller business loans. Lenders keep the interest rate on the higher side because no collateral is involved, and your company is getting limited returns.

What are the requirements to fulfil for a short-term business loan?

Lenders have different requirements for small companies looking for short-term business loans. In general, details of companies’ business duration in the market, annual revenue, and personal or business credit ratings are required. Lenders decide the loan amount, term, and final interest rate based on these factors. If you are ready with these details, you can apply for short-term business finance now.

How much can I borrow with short-term business funding?

The loan amount is determined according to the company’s current financial situation, returns and credit scores. Lending terms also decide the final amount. Our panel of lenders is ready to offer between £5000 and £250,000. If you need more, you must apply for long-term business loans. We suggest you keep the amount limit, which is affordable to repay. Otherwise, it may hamper your credit score.

Do I need a personal guarantee to opt for a short-term business loan?

Keeping a personal guarantee is always beneficial in fetching approval on any type of loan. A short-term loan for business usually does not involve such obligation, but if you have someone who can co-sign with you, the lender will approve your loan application based on that guarantee. It means if you default in between, your guarantor will be responsible for repaying the remaining loan amount. You may not need a personal guarantee if you have kept a business asset as loan collateral. Should you prefer personal guarantees for a business loan? Click on that for a detailed answer.

Are short-term business loans available with any credit score?

A lower credit score may not be eligible for a business loan. Most lenders consider financing businesses with low credit profiles risk, as they have lost their financial creditworthiness. However, it does not mean that you cannot qualify every time. We work with those lenders who can offer short-term business loans on soft credit checks and are thus available for any credit scores. A soft credit assessment will not impact your score. Of course, our guidance will be there from the application procedure till the final payment of the loan.