Short Term Small Business Loans

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Short term small business loans, sometimes called short term business financing, can be essential to funding your business activities, whether you are in a service or product-based business.

There are many uses for short term small business loans that make sense for the vast majority of businesses, ranging from operational expenses to the purchase of raw materials, products, or other equipment and needs to render services or generate sales. They are also fairly easy to qualify for.

Short Term Small Business Loans Guide

What Are Short Term Business Loans?

A Short Term Business Loan is an unsecured (no collateral required) loan, which is typically offered to businesses over a short loan term of a year or less, though longer terms may be available depending on the loan specifics.

These loans typically have a medium interest rate for an unsecured loan, and can provide reasonable short term business financing, in large fund amounts, that are highly accessible for most small businesses.

The credit rating and other requirements are somewhat more stringent than those listed for bad credit business loans, but with correspondingly lower interest rates and higher borrowing amounts.

Is a Short Term Business Loan Right for My Business?

The requirements for an unsecured small business loan are fairly generous, stipulating a relatively low time in business, fairly low minimum credit score, and fairly modest minimum monthly revenues.

If you don’t have assets, or don’t wish to risk assets, to obtain funding from a traditional business loan, or your credit score or credit history are too limited to qualify, then an unsecured small business loan may be a perfect choice to help finance and grow your business.

Ultimately, like all financial decisions, you’ll have to weigh the pros and cons, and look at your options, to determine if an unsecured small business loan is the best choice for you and your unique situation.

How Do I Qualify for a Short Term Small Business Loan?

Like all loan products, the approval process and exact requirements for a given business can vary from the next, based on individual factors such as the loan amount, repayment term, and so on. In general, short term small business loans have more stringent requirements than several of the other loan types we offer at BizFly Funding. However, for established businesses with average or better credit, they can be fairly easy to qualify for.

The basic minimum requirements for qualifying for a short term small business loan with BizFly Funding include:

Estimated Business Loan Term: 6 – 24 Months
Your business must have been operational for at least 1 year as of the time of application
You must have a minimum business credit score of 600 or higher
You must generate $10,000 in minimum monthly revenue
Rates: 9% – 45%*
Min Business Loan Amount: $15,000
Max Business Loan Amount: $1,000,000
Max Number of Negative Days: 4 Within a Month

Is Short Term Business Financing Through a Loan Better Than a Line of Credit?

If you need a large sum of money up-front, and expect to then repay it over time, a short term small business loan is a great form of short term business financing. This also assumes you have a sufficiently high credit score, business operational history, and meet the other lending requirements.

A line of credit is more geared toward flexibility – usually having much higher limits, but providing its utility on a rolling or revolving basis rather than a fixed, up-front sum. Depending on your intended use for the funds, a short term small business loan may be superior or inferior to a business line of credit.

It all depends on your individual business finance needs.

What Are the Most Common Uses of a Short Term Small Business Loan?

Short term business loans are ideal for situations where you need a large amount of money up-front to outlay, or are seeking to reinforce or buffer your bank balances against variable expenses and purchases.

There are no real restrictions on how you use the money, but the nature of a short term small business loan does dictate some of the most optimum uses of the funds.

These include:

Purchasing inventory, especially if you are a product wholesaler or retailer – this is a costly capital outlay that is necessary to generate sales revenues
Expanding your business with new clients, new markets, new personnel, new equipment, etc.
Building new facilities or purchasing/leasing/renting additional workspace
Adding labor, shifts, workers, and so on in support of large orders, business expansion, or regular business operational activities
Buying out business partners or part owners of the business
Undertaking new marketing efforts designed at increasing sales of your products or services and thus generating greater revenues over the long term

How Do I Apply for a Short Term Small Business Loan With Bizfly Funding?

With BizFly Funding, you can apply for a short term small business loan, through our website, in a very simple, quick, and easy process. Pre-approval can be received in as little as 30 minutes, and it will not affect your credit score.

Step 1: Apply

Step 2: Get Approved

As soon as this is submitted completely, it will be submitted to our underwriters and our Funding Specialist will contact you with a few offers to choose from.

Get an approval within hours after your application is processed.

Step 3: Get Funded

Choose one of the offers provided by the Funding Specialist and provide a few extra documents to complete your submissions.
Once the underwriters have received the full submissions package – the funds will hit your business bank account within 1-2 business days.
In some cases, same day funding can be applied.

Short Term Small Business Loan Recap

Short term business financing with a short term business loan is a fairly standard means of increasing your available capital and funding projects. These loans have a higher threshold for qualification than many other types of business loans we offer.

However, they offer competitive interest rates and terms, and unsecured funds that can be used as you see fit to serve your business’ needs.

Stable up-front lump sum of money that is then repaid on a fixed structure over the term of the loan
Lower interest rates than bad credit loans, due to the higher credit and business stability requirements of the loan
Flexible, collateral-free funds that can be deployed as you see fit within your business
Enable a wide range of business activities and expenses when internal funding and sales mechanisms do not provide enough liquidity or available capital

If you have additional questions about a short term small business loan from BizFly Funding, need more information, or help with your loan application, our support team is more than happy to assist you!

Simple Online Application Process

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Short Term Business Loan FAQ’S

How Long Before I Receive Funding?

There have been cases where borrowers got funded within the same day that they submitted an application. It just depends on how prepared the applicant is with their documents as well as several other factors.

Will This Improve My Business Credit?

If you pay this off as agreed it has the potential to lead to longer term financing at better rates.

Are There Restrictions on How I Use the Funding?

You can use the funds however you choose.

Is There a Prepayment Penalty?

No. There is the possibility of a discount if you pay it off early.

Is There a Possibility of Extending My Short Term Funding?

The possibility of extension is considered on a case by case basis.

What if One Owner Has Bad Credit?

As long as 51% of ownership has good credit you can apply for this type of funding.

How Many Years in Business Do I Need?