How short term business loans work
Short term business loans can often be the ideal solution as it can provide a relatively quick way to access money when you need it. Also, because the loan is paid off relatively fast, repayment does not become a major ongoing expense.
“The options for business owners in accessing funding have improved significantly in the last 2 years”.
The growth of peer to peer funding and crowdfunding platforms offering finance means that high street banks no longer have control over this market for loans up to £500,000.
How much you can borrow, how long for and how much you are likely to pay in interest will depend on the reasons for the loan, the current and past performance of your business and various other factors.
To find out the best type of business borrowing for your specific needs and circumstances, it is well worth talking to a professional loan advisor.
We can help you access the money you need at the most affordable price quickly and with the less possible hassle.
The majority of businesses will need to borrow money at some point. This might be to help with the costs of getting started, easing cash flow or funding expansion plans.
When looking to access short term business finance, it is highly worth consulting an independent loan advisor with experience of dealing with this kind of finance. They will be able to help speed up the process of finding the money you need while identifying the best possible deal on your loan to keep your costs down.
What is a short term business loan?
Short term business loans are usually offered over 6 months or less, although longer terms may be available depending on the lender. Variable and fixed interest rates are usually an option, with fixed rates being a popular choice as it can help to keep your company overhead predictable.
Short term business finance can either be offered as an unsecured loan or a secured loan, which is likely to affect how much you can borrow and how much you are likely to pay in interest. With an unsecured loan your borrowing is likely to be capped at £25,000 by many lenders, whereas a secured loan could allow you to access significantly more.
Benefits of a short term business loan
Choosing short term finance for your business has a number of advantages which makes it a preferred option for many companies:
Quick application process – Because most short term finance is unsecured, the application process is usually fairly fast and simple. If you are approved, many lenders can have the money into your account within as little as 24 hours.
Short repayment time – As most short term loans have to be repaid within 6 months, it means you will not end up with the loan hanging over you, putting up your overheads for years to come. This makes short term finance ideal for situations where there is a temporary gap in your funding, or where investment now is likely to generate fast returns.
Pay less interest – Because you are paying the loan back over a relatively short period, you will not normally end up paying as much in total interest as you would on a longer term loan, even if a loan with a longer lifetime offers a lower rate.
Compare short term business loans
When you need a quick injection of short term cash into your business, it is important to find the money quickly but still get a good deal on the interest rates and other terms and conditions. How much you end up repaying monthly on your business finance can make a big difference to your ability to turn a profit in the future.
Our short term business loans calculator (see top of page) allows you to quickly compare leading deals on short term enterprise finance from leading lenders across the market. That way you can find the money you need at a price you can afford swiftly and efficiently.
To Find out the best business loan deal for your situation complete our enquiry form above.