Business finance - SEO page - Short term business loans

Short-term business loans

Most businesses will need to borrow money at some stage either to help with cashflow, or to pay for expansion costs, and a short-term business loan can provide the ideal solution. Although recent years have seen a reduction in the number of business loans on offer, there are still plenty of options available to explore.

MoneySuperMarket doesn't offer a comparison service for this type of product, but we have compiled a list of lenders below who can help.

Short-term business loans

    • Provider/Product name Business Loan

      ezbob

      Business Loan

    • Description

      UK's premier provider of unsecured business loans

      A quick and simple online application makes £50,000 available to you at the click of a button

      Credit decisions are based on business performance not just your personal credit score

      You choose the length of the loan, up to one year.  Early repayment is acceptable with no penalties and no hidden fees

      Requirements: UK resident, UK bank account, 2 years trading history + £150,000 in annual sales

    • Go to site

    EU Funded

    Chosen by the European Investment Fund (EIF) to be a certified EU financial intermediary under the EPMF Guarantee scheme

    Backed by the UK Governments Angel Co-Fund and appointed Financial Intermediary by the European Union and European Investment Fund. 
     

    • Provider/Product name Business Loan

      Everline

      Business Loan

    • Description

      Everline provides fast, flexible and convenient credit to entrepreneurs looking to expand their business, manage working capital, or fill a cash gap.

      • Access short-term finance within one hour of approval
      • Borrow up to £50k for up to 52 weeks (up to £10k for Sole Traders)
      • All costs are clearly displayed and you don’t pay a penny more

      Repay early to save on interest, no early repayment fees

    • Go to site

    Over 18 and UK resident. Trading for minimum of 2 years. Loans are subject to approval and terms and conditions apply.

    • Provider/Product name Business Loan

      Just Cashflow

      Business Loan

    • Description

      Just Cashflow provide overdraft facilities to UK businesses that need cash to solve short-term cash flow issues. This revolving credit facility puts you in charge of your business loan.

      • Get cash in your bank within 24 hours once approved
      • Borrow up to £100,000 for a day, a week, a month or longer – it is up to you
      • Easy to apply and rapid approval process
      • Interest charged only on amount borrowed

      Just Cashflow are a subsidiary of Just Loans plc.

    • Go to site

    Limited companies only. No minimum trading period restriction. Subject to approval. Terms and conditions apply.

    • Provider/Product name Business Loan

      Funding Circle

      Business Loan

    • Description

      UK’s biggest peer-to-peer business lender

      Business loans from £5k to £1 million - without the banks.

      Borrow from a community of 70,000 people together with the Government, councils and universities.

      Quick & convenient process:
      > apply online in 20 minutes
      > get a decision in 48 hours directly from the credit team
      > receive funding in 6 days on average

      Loan terms from 6 months to 5 years. No early repayment charge.

      Highly flexible: borrow for working capital, expansion, property, asset purchase and one-off business expenses.

      Now open for non-limited companies (sole traders and partnerships) to apply for a loan.

    • Go to site

    Minimum criteria: 2 years+ filed accounts with Companies House, minimum turnover of £100k and a good credit score.

    • Provider/Product name Commercial Finance

      Lloyds Bank

      Commercial Finance

    • Description

      You want your company to flourish, and so do Lloyds Bank.
      Lloyds Bank will release up to 90% of an invoice's value, typically within 24 hours.
      It'll save you up to 30, 60 or 90 days of waiting to be paid.

      When you're not constrained by unpaid invoices, you'll have the cash flow and working capital on hand to fund growth.

      95% of Lloyds Bank's clients rated their service highly1. With over 40 years of expertise, Lloyds Bank's invoice finance solutions can run seamlessly and discretely in the background.
      1Independent research, rep. sample June 2013

    • Go to site

    Invoice Finance facilities are provided by Lloyds Bank Commercial Finance Ltd and is not authorised or regulated by the PRA or FCA.

    • Provider/Product name Business Loan

      Bizniz Cash

      Business Loan

    • Description

      Flexible, short term business funding, £3.5k to £150k.
      Provide your small or medium sized business with the finance you need to improve your cash-flow and help your business grow.
      Do I qualify?
      Answer YES to these 3 questions and Bizniz Cash can almost certainly help.
      > Have you been trading for at least 9 months?
      > Do you take a minimum of £3.5k per month in credit & debit card sales?
      > Have you at least 12 months left on your lease?
      Funds in 7 days for restaurants, bars, garages, retailers, hair & beauty salons and many, many others.
      90% approved. 

    • Go to site

    UK mainland and now Northern Ireland too

    • Provider/Product name Touch Invoice Financing

      Touch

      Touch Invoice Financing

    • Description

      Invoice Finance is your small business funding solution advancing up to 95% of the value of your invoices often within 24 hours of their creation.


      Release up to four times as much cash over traditional bank lending.


      The service is free and confidential.


      Create a healthy cashflow and see your business grow.


      Credit collection service available.


      Short-term contracts and trial periods make factoring ideal for first time users.


      Touch Financial work with over 20 of the UK’s leading lenders.

    • Go to site

    Invoice Finance is available if you sell your products or services on credit to other businesses. Speak to Touch and realise your business’s potential.
     

    • Provider/Product name Business Loan

      iwoca

      Business Loan

    • Description

      Award-winning business loans to invest in new opportunities or bridge cash flow gaps.

      > Borrow £1,000 - £50,000 for up to 6 months
      > Rates from 2% - 6% per month (no other fees)
      > Free early repayments

      Sign up in minutes with none of the paperwork associated with traditional providers. Their expert account managers will immediately look at your application so they can get you funded within hours.

      Get approved today for free.

    • Go to site

    Top-rated lender on independent review site Trustpilot.

    • Provider/Product name Asset Finance Loans

      Funding Circle

      Asset Finance Loans

    • Description

      UK’s biggest peer-to-peer business lender.

      Asset finance loans for leasing and refinance from £20k to £1 million - without the banks.

      Borrow from a community of 70,000 people together with the Government, councils and universities.

      Quick and convenient process:
      >Get a decision in 48 hours directly from the credit team
      >No-deposit finance available
      >Competitively priced, rates from 6% and no early repayment charges
      >Wide range of assets including: wheeled assets, oiled assets, machinery and equipment, buses and vans etc.

    • Go to site

    Minimum criteria: 2 years+ filed accounts with Companies House, minimum turnover of £100k and a good credit score.

Short-term Business Loans

A short-term business loan can be invaluable for businesses that need a cash boost if they are expanding, or if they need a bit of extra help to manage their cashflow.

This type of loan usually has a term of six-months, so will need to be repaid quickly. You can usually choose a fixed rate of interest, so you know repayments will be the same every month, or a variable rate, which could mean your repayments change over time.

Advantages of short-term business loans

The main advantage of opting for a short-term business loan is that you know your business will only have to make repayments for a limited period of time. You will also usually pay less interest overall than if you opted to repay what you owe over a much longer term, such as five years.

Read more

Disadvantages of a short-term business loans

Choosing to take out a short-term business loan may mean that you will be able to pay off what you owe quickly, but bear in mind that your repayments will be much higher than if you opted to repay your long over a medium or long-term period. Interest rates can be very high on short-term borrowing, so it’s worth comparing lots of different loans to ensure you find the right deal for your business’s needs.

What else you need to know

Difficult economic conditions in recent years have made it harder for businesses to borrow money. To apply for a business loan, your business may be required to have a minimum monthly turnover, and you may have to show a set number of accounts, usually two or more years.

Remember too that the actual rate of interest you will be charged on a short-term business loan will depend on your business’s individual circumstances, the amount you want to borrow, and over what period you intend to pay off what you owe.

Alternatives to a short-term business loan

If you don’t think your business will be able to pay off any borrowing over a year or less, then you might want to consider a medium or long-term business loan which can be repaid more slowly.

Other options include using a business credit card for any immediate expenses. These can also be a useful way to manage staff spending. You could also speak to the provider of your business bank account about arranging a business overdraft which can provide you access to funds as and when you need them. You can usually arrange an overdraft for a 12 month period, at which point it will have to be renewed.

Businesses can also raise funds though cashflow finance, which allows then to borrow against the value of their unpaid invoices, or they can borrow against their assets such as any equipment or property.

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