Short-Term Business Loans
Fast financing to cover short-term needs like cash flow management, business expansion, or emergency recovery.
Last updated Dec. 18, 2024
Short-Term Business Loans At a Glance
Loan TermUp to 24 months
Interest RatesStarting at ~10%
Funding SpeedAs fast as 1 day
Max AmountUp to $10 million
Pros and Cons of a Short-Term Business Loan
Pros
✔️ More flexible qualification requirements than long-term loans.
✔️ Application process may be more streamlined than for other loan types.
✔️ Can use the financing for a variety of business needs.
✔️ Fast to fund, usually within a couple of days.
Cons
✖️ Higher interest rates than long-term loans.
✖️ Frequent payments, often daily or weekly rather than monthly.
How a Short-Term Business Loan Works
A short-term business loan is frequently structured as a straightforward business term loan.
You receive a set amount of capital from a lender upfront and agree to pay it back, with the lender’s fees and interest, over a predetermined amount of time. You can also find a short-term business loan in the form of a business line of credit, invoice financing, and merchant cash advance. Short-term loans are most often available from alternative lenders but can also be issued by banks, credit unions, and SBA lenders.
When to Consider a Short-Term Business Loan
Many small business owners will turn to a short-term business loan for urgent or time-sensitive financial situations. This is because the lenders offering short-term loans typically have online applications requiring less paperwork and therefore faster review, approval, and funding.
You might consider a short-term business loan to:
- Help fill cash flow gaps.
- Purchase inventory.
- Cover payroll.
- Pay taxes.
- Expand your business.
- Cover emergencies.
- Refinance other short-term debt.
Qualifications for a Short-Term Loan
*Based on past Fundera customers
Fundera Can Help
We’re here to take some of the work of finding a small business loan off your plate.
You can answer these few questions—with no impact to your credit score and free of obligation—to see which short-term loans you qualify for. One of our trained sales associates will personally advise you through the entire loan process, from comparing options to signing your agreement.
Let’s get you funded!
How much do you need?
No cost to you
Your credit score won't be impacted
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