Short Term Business Loans

Learn more about short term business loans and discover the best loan providers. Includes frequently asked questions.

Updated on November 26th, 2019

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Short-term business loans are a great option if your business needs a quick injection of capital to start a new project or purchase new equipment. Because short-term small business loans are usually for much smaller amounts than long-term loans, they are easier to access.

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Fast Business Loans - Find the best providers of fast business loans for 2019.

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Small Business Loans - Find the best lenders of small business loans for 2019.

Why We Chose Credibly:

Credibly offers a wide variety of loan types including short term, working capital, and business expansion loans. They will also customize your funding to make sure you receive the right-size funding for your needs.

Credibly has an easy application and fast approval process. Users of Credibly can apply online and receive their approval and their funds within 24 hours. Credibly offers competitive rates and terms, with interest rates starting from 1.15 (factor rate) and loan terms of 3 to 24 months, depending on the loan type.

Credibly is a great loan provider that will help individuals with lower credit scores. They also offer a good customer support team.

Things to Consider When Evaluating Short Term Business Loan Providers:

  1. Match the length of the loan terms with your business needs. If you need a longer loan term, consider small business loan options.
  2. Look at the different loan options and evaluate the costs involved.
  3. Make sure you meet all the qualifications for the loan option of your choice.

Short Term Business Loan Providers:

Loan Provider

Loan Amount

Term Length

Review

Credibly

Up to $250,000.00

6 - 17 months

Offers competitive rates and terms and has an easy application process but there is a 2.5% origination fee.

Balboa Capital

Up to $250,000.00

3 - 4 months

Offers an easy application process and flexible products but businesses must generate at least $300,000 annually to qualify.

Credibility Capital

$10,000.00 to $400,000.00

1 - 3 years

There are no pre-payment penalties and no collateral requirements but there is a minimum credit score requirement of 680.

Fundbox

Up to $100,000.00

3 - 6 months

Has a fast loan approval process and will help individuals with bad credit scores but requires weekly repayments.

Kabbage

$500.00 to $250,000.00

6 - 12 months

Features an easy online application process with monthly payments but only offers small loan amounts and is not ideal for start-ups.

Lendio

$2,500.00 - $500,000.00

1 - 3 years

Offers access to over 75 lenders and has a fast application process but has high fees and interest rates.

Lendistry

Up to $500,000.00

1 - 12 months

Offers loans to high-risk industries but charges a 2% pre-payment fee if you repay your loan within the first year.

OnDeck

Up to $500,000.00

3 - 12 months

Fast and easy qualification process but the rates are comparatively high.

StreetShares

$2,000.00 - $250,000.00

3 - 36 months

Offers loans to low-revenue new businesses but requires weekly repayments.

FAQs:

How do short term business loans work?

A short term loan provides your business with quick working capital. You will receive a lump sum of cash upfront from your lender that is repaid over a set period of time and includes lender fees and interest as part of the total cost of the loan.

How long is a short term business loan?

The term length for short term business loans can range anywhere from 3 months to 3 years.

Why do businesses need short term loans?

  • To cover temporary deficiencies in funds in order to meet payroll and other expenses.
  • To buy inventory in advance of peak periods with the advantage of being able to pay it back at a later stage.
  • To keep afloat while waiting for credit customers to pay their bills.
  • To even out cash flow.

What are the best short term loan companies?

What is the typical range for short-term business loan rates?

Depending on the size of your loan, interest rates can be anywhere between 5% and 50%. Rates for short-term loans are usually on the lower side of those numbers.

Where can I get 6-month loans for my business?

If you need a short-term loan with a 6-month term, Credibly, Fundbox, and Kabbage all offer flexible short-term small business loans that can be taken out for 6 months or more if necessary. If you can pay back your loan in 6 months, your business will save money and avoid paying long-term interest.

What is a good credit score to apply for a short-term business loan?

Most financial institutions require a minimum personal credit score ranging from 500 to 650 while a score above 700 is considered favorable. There are also loan providers who will consider loans for individuals with bad credit.

What is short-term business finance?

The term "short-term business finance" refers in general to financial activities that are designed to help a business grow or seize an opportunity in the short term. Your business should only seek short-term financing options if you have a legitimate opportunity to add value to your company.

Can I get small business short-term loans if I have bad credit?

Some loan providers will still approve short-term loans for a small business in spite of a poor credit score.