Short-term loans are obtained to tackle temporary business or personal capital needs. Short term loans are named such because they require quick repayment. They are faster to get, have shorter repayment periods, and are an excellent option for businesses yet not eligible to apply for a long-term loan.

How does a Short-Term Loan work?

Short-term loans work similarly to long-term loans. Although the credit limit for short-term loans is lower and the interest rates are higher, it is an effective solution to tackling a sudden but temporary financial crunch.

• It is easy to apply and qualify for such loans.
• It gets disbursed within a few hours to a couple of days.
• Depending on your lender's policy and requirements, the loan period may vary from 3 to 18 months.
• Documents to submit are only your bank statements for the past three months and the survey report of the market status of your business.
• The annual percentage rate (APR), generally higher for Short Term Loans, is significant and negotiable.

You have to be very rational in deciding the loan amount, the lender, the interest rate, the repayment schedule, and the late payment fees. The loan amount is paid lump-sum and varies from lender to lender. The repayment schedule can be flexible, ranging from daily, weekly, or monthly, as per the agreement between you and the lender.

From lower interest rates to a streamlined application process, the advantages of short-term loans are numerous. Some of the top benefits of short-term loans are that both startups and established businesses can leverage them for the progress of their companies.

Fast and Easy Approval Process

Applying for a short-term business loan is a simple and fast process. You can fill out the loan application form within just a few minutes from the comfort of your home and get the money into your bank account in as little as 24-48 hours. 

A variety of Options

Short-term loans come in various forms, from lines of credit and invoice financing to merchant cash advances or instant loans. 

Use for a Variety of Business Purposes

A short-term loan provides immediate cash during tough times – large purchases, slow seasons, and protects again emergencies. Whether you want to expand your business, add new talents to your team, refinance business debt, purchase inventory, or improve issues with cash flow, you can use a short-term loan for a variety of business purposes.