Compare short term business loans

Short term business loans can be a vital part of a small businesses financing, so getting the right one is important. Compare 1 to 6 month short term commercial loans today.

  • Compare short term loans from leading companies
  • Check terms and repaymanets
  • Our service is easy, fast, reliable and free of charge

Compare short term business loans from leading providers

Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

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How to compare short term business loans

1

Prepare a business plan

Decide why you are comparing deals for business loans and why you want to borrow the money. Work out how much you need to borrow and how long you'd need to repay. Once you have decided on a short term business loan find the cheapest short term business loan deal by comparing a number of companies.

2

Compare your options

Have a look through the options to find the best short term business loan for your business needs. Terms and repayments can vary between providers so check any conditions attached to the loan then pick a deal that offers the cheapest short term business loan for your business.

3

Apply for the loan

You may be able to get a cheaper business loan by applying online and some lenders and brokers only ever operate digitally, so to make sure you find the best short term business loan deals comparing quotes on the internet is a must. Once you've decided on the provider you want, simply apply.

Short term business loan deals

11 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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Funding Options Business Loans
Loan amount
£1,000 to £15,000,000
Loan term
1 month to 120 months
Funding Options Business Loans
Funding Options is a Credit Broker and not a Lender. Their APR starts from 2.75% and has an average of 7.38%. They can help you prepare and submit your Recovery Loan Scheme application through multiple RLS accredited Lenders.
Minimum Turnover is £60,000 with 12 months minimum trading. Some lenders may apply fees during the application process, please note that these are set and provided by these entities.

What is a short term business loan?

A short term business loan is a business loan that has a term of anywhere between three to 12 months.

Businesses often use short term loans to cover for temporary cash flow shortfalls, or to get additional finance to expand the business.

How to get the best short term loan

You need to find a lender that can offer you a business loan for the lowest Annual Percentage Rate (APR) over the term you want to repay the money over.

This comparison shows each lender's representative APR, but you are not guaranteed this rate if you apply

Your business has a credit record, which will affect whether a lender can offer you their advertised APR, or offer you a loan at all.

Here is how business loans work

What are the different types of short term business loans available

There are a few different types of short term business loans available that offer different features.

  • Term loans: Terms loans are essentially personal loans for businesses. You pick the amount you need and decided on how long your business needs to pay it back at a fixed interest rate.

  • Asset financing: Asset finance uses a company's assets, for example equipment, machinery, or property, as a security to borrow money. While this make allow your business to borrow more or get a lower interest rate, it does put the assets at risk.

  • Invoice financing: It's a way to borrow money for your business, using the value of your unpaid invoices as security.

How to choose the right short term loan for your business

Before you apply for a short term business loan online, you need to find out:

  • How much you need to borrow: Only borrow what you need to avoid paying unnecessary interest. Some lenders may not offer the loan amount you need, and those that do will charge you interest each day until you repay it.

  • How long you want the loan for: The longer the loan takes to pay off, the more you pay in interest. Check how much it costs per month to repay your loan, and if you can afford to pay back more then reduce the term of the loan.

Try not to over stretch yourself financially when you apply for a short term business loan. If you miss any payments the extra interest you get charged could end up costing you hundreds.

Use this comparison to find a business loan that lets you borrow for the term you want.

What other options are there?

Short term business loans can give you the cash injection you need, but your repayments are likely to be higher compared to borrowing the same amount over a longer term.

If you want to keep your repayments as low as possible, compare business loans with longer terms here. However, a longer term may reduce your monthly repayments, but you will pay interest for a lot longer too.

If you need to borrow a small amount, you could consider a business credit card to spread your payments over a term of your choosing, however you will still pay interest on what you spend.

Short term business loans FAQs

About our short term business loans comparison

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Why compare loan deals with money.co.uk?

Comparing business loans could save you money. Our multiple award-winning comparison service makes sure you get the lowest rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

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Last updated: 23 February, 2021