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.