Short Term Business Loans

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

Updated on June 28th, 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.

Short Term Business Loan Providers:

Loan Provider

Loan Amount

Term Length

Balboa Capital

Up to $250,000

3 - 4 months

Credibly

Up to $250,000

6 - 17 months

Credibility Capital

$10,000 to $400,000

1 - 3 years

Fundbox

Up to $100,000

3 - 6 months

Kabbage

$500 to $250,000

6 - 12 months

Lendio

$2,500 - $500,000

1 - 3 years

Lendistry

Up to $500,000

1 - 12 months

OnDeck

Up to $500,000

3 - 12 months

StreetShares

$2,000 - $250,000

3 - 36 months

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 up front 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.

See the full list of Short Term Business Loan Providers.

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.

Learn more about Short Term Business Loans.

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.

Learn more about Short Term Business Loans.

What are the best short term loan companies?

See the full list of Short Term Business Loan Providers.

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.

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. You can learn more about getting a loan with a bad credit score here.