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

Think about why you want to borrow the money, how much you need, and over how long you want to repay it. If you decide that a long-term loan is right for your business, look for the cheapest on the market.


2

Compare your options

Look through the options to find the best fit for your business needs. Check any conditions attached to the loan, then pick a deal that offers you the lowest interest rate with a term length that makes the repayments affordable.


3

Apply for the loan

While banks offer commercial finance options, some lenders and brokers only operate digitally. To find the best long-term loan, you need to compare quotes on the internet. Once you’ve decided on the provider, you’re ready to apply.

 


Short term business loan deals

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What is a short term business loan?

A short-term business loan is a commercial loan that has a repayment term of anywhere between one and 12 months.

Businesses often use short-term loans to cover temporary cash flow shortfalls, or to help fund expansion plans.

What types of short-term business loans are available?

There are a few types of short-term business loans and each has different features:

  • Term loans: these are essentially personal loans for businesses. You pick the amount you need, decide how long your business needs to pay it back, and are charged a fixed-interest rate for the duration of the loan

  • Asset financing: this lets you use assets like equipment, machinery or property as security for your loan. While this may allow your business to borrow more or get a lower interest rate, it puts those assets at risk if you can’t repay

  • Invoice financing: this enables you to borrow money using the value of your unpaid invoices as security

What other options are there?

Short-term business loans can give your business a cash injection, 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, you could compare business loans with longer terms. Bear in mind that while a longer term may reduce your monthly repayments, you’ll end up paying interest for a lot longer too.

If you need to borrow a small amount, you may like to consider a business credit card to spread your payments over a term of your choosing. Note: you’ll still pay interest on what you spend.

How to get the best short-term loan

To find the best short-term loan you’ll need to shop around – look for lenders that offer terms and charges which suit you. The best loan is the one that offers the lowest Annual Percentage Rate (APR) compared to the term over which you want to repay the money.

This comparison shows each lender's representative APR, which is the rate the lender must offer to at least 51% of applicants. You may not be offered the same rate. Your business has a credit record that affects whether a lender can offer you its advertised APR, whether your offered APR is higher or lower, or whether the lender will offer you a loan at all.

Here’s how business loans work

How to choose the right short-term loan for your business

When choosing the right short-term business loan, you need to consider the following:

  • How much you need to borrow: only borrow what you need to avoid paying unnecessary interest. 

  • How quickly you want to repay: the longer the loan takes to pay off, the more interest you pay. Check how much it costs per month to repay your loan, and whether you can reduce the loan term if you pay back more with each instalment

Try not to overstretch yourself financially with a short-term business loan. If you miss any payments the extra interest charges could end up costing you hundreds.

When you’re sure of your needs, use our comparison to find a business loan that lets you borrow the amount you want for the term you need at the lowest APR.

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: 31 May, 2022