Short-term business loans provide rapid capital—typically repaid within 3 to 24 months—to manage cash flow gaps, unexpected costs, or inventory needs. They are faster to obtain than traditional loans, often requiring minimal documentation and offering funding in as little as one day. However, these loans come with higher interest rates and, frequently, daily or weekly payments. 

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Key Features of Short-Term Business Loans

• Repayment Terms: Usually less than 12 months, though some extend to 24 months.

• Funding Speed: Often faster than traditional bank loans; lenders like Online Lenders can provide fast, online applications.

• Costs: Interest rates vary significantly, often starting from 7.49% to over 30%, depending on creditworthiness.

• Requirements: Lenders typically look for at least six months to two years in business and at least  in annual revenue.

• Collateral: While not always requiring physical assets, borrowers often must sign a personal guarantee. 

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Common Uses

• Emergency Expenses: Fixing equipment or handling, unexpected, short-term issues.

• Inventory Boosts: Stocking up for busy seasons.

• Cash Flow Gaps: Bridging the gap between paying suppliers and receiving customer payments.

• Limited-Time Opportunities: Acting quickly on business opportunities. 

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