Compare Short Term Business Loan Lenders
Finding yourself in a bit of a financial rut as an SME is often worrying for business owners. When cash flow has slowed or you need a bit of a cash injection to help bridge the gap between income periods, short term business loans can provide relief when it’s needed most. Whether you’re seeking fast access to cash for a time-sensitive investment opportunity, or you’re in need of a bit of help funding your daily business activity when times get tough, these loans could provide the short-term relief that you need.
Short term loans are essentially any business loan designed to be repaid quickly and over a short period of time and can be used for anything from helping you through periods of low cash flow, to funding an office refurbishment. Designed to cater for amounts up to £250,000 or more in some cases, repayment periods tend to be much shorter than commercial mortgages or traditional bank loans. We can guide you towards the secured and unsecured short term business loans that suit you and your company’s financial situation best to ensure that you can find the solution you need, matter how much you are looking to borrow.
Short term loans can offer you:
- Fast access to funds – When you’re in a financial rut, you probably need money fast. Short term business loan lenders can offer the money you need, often in just 24-72 hours depending on your situation and the time it takes to conduct financial checks.
- Flexibility in business – Short term business loans may give you the opportunity to keep yourself afloat when things get tight financially, but they also provide flexibility with spending and opportunity.
- You can regain control over your business – Running a business can be difficult, especially where finances are involved. Through short term loans, you can regain and maintain control financially.
- Short term commitment – Designed to help you with immediate problems, short term loans are designed to be quick to settle, so there is no need to make any long-term payment commitments.
Types Of Short Term Business Loan
There are a number of different types of short term business loans which you may want to consider, depending on your individual business requirements. These include:
As a short term funding option, bridging loans are perfect for businesses looking for a bit of extra cash to put towards development projects on properties. While these short term business loans can be used for alternate business activity, this isn’t as common. These loans are often used to stop property being repossessed due to other loans, to help take advantage of development opportunities or to help make repairs or needed renovations when budget won’t cover it.
Benefits of bridging loans include:
- Short repayment periods so no long-term financial commitment is needed.
- You can take advantage of quick purchases or time-sensitive property investments.
- It can work as a stop gap while working to secure longer-term finance options.
- Your credit profile could be improved when regular payments are met.
Working Capital Loans
These short term business loans tend to offer a unique form of finance for SMEs, in particular, to help them fund regular business activity through periods of limited cash flow. They typically cover wages, accounts payable and similar, and can prove beneficial to companies that may perform better seasonally.
Benefits of working capital loans include:
- When you’re short on capital, these loans can provide cash flow if a helping hand is needed.
- Most short term business loan lenders only require a few documents for a working capital loan, so the entire process is very simple.
- Working capital loans do not require any collateral, which is beneficial for small businesses without any valuable assets.
If you have unpaid invoices, lenders may be able to help you release that unpaid capital in the form of a loan. This removes the restriction of term times and can help you to go on and fund your business with money owed.
Benefits of invoice finance include:
- You can maintain cash flow during off seasons or at low points of an ongoing business cycle.
- You can only request invoice finance on invoices you already have; you can only advance any that renew monthly or that you are already waiting for clearance.
- Invoice financing provides funding to help grow your business between terms, so you’re never at a stalemate.
Unsecured Business Loans
Unsecured short term business loans are ideal for SMEs with limited assets or who aren’t willing to risk them as collateral. In the case of an unsecured loan, the lender will hold the risk and as a result, interest rates and repayment periods can vary greatly depending on your previous credit experience.
Benefits of unsecured business loans include:
- You don’t need to put up any business or personal assets as collateral, ensuring their security.
- Some unsecured business loans can work like credit cards – you can borrow what is needed when it’s needed, and adjust the repayments as necessary.
- With good credit, the interest rates can be very reasonable. Rates depend on your credit, so if you have a proven good credit history, you could benefit from longer repayment periods and lower interest rates.
- Much faster - no valuations necessary
- Rates from as low as 4.9% APR - 1.1% (Flexible Facility)
- Personal Guarantees sometimes required
- Loans up to £1,000,000
- Less fees
- Overall Interest rate usually higher, because the lender has a higher risk
Is There Any Criteria For A Short Term Business Loan?
Criteria can differ from lender to lender, but each one will conduct a number of checks that you will need to pass in order to be accepted for a short term loan. Your business projections, the current state of your accounts and any potential asset value may come into play dependent on the loan, but one thing that you are guaranteed to be subject to is an affordability check.
All short term business loan lenders must conduct an affordability check before accepting or rejecting any loan applications. They will take into account your credit history, your business finance and your personal finance in some cases in order to determine whether you can feasibly afford the monthly repayments. If you have an adverse credit history, you won’t necessarily be rejected – some lenders are able to offer short term business loans to companies with bad credit, but you may be subject to higher interest rates and be given a shorter repayment period in order to counteract any potential risk.
Short term business loan lenders each have different criteria, but with our iFunds matching technology, we will ensure that we match you to the right lenders for your situation and your business.
To compare short term business loans, simply fill in our comparison form and we’ll provide you with a list of trusted lenders almost instantly. Secure your short term loan, today.