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.

7 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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Swoop Business Loan
Loan amount
£50,000 to £5,000,000
Representative APR
6.85% APR
Loan term
3 months to 96 months
Simple, secure and speedy access to over 1,000 funding providers without affecting your credit rating. Team of five-star Trustpilot-rated experts to guide you through the process.
Swoop is a broker, not a lender. Minimum 1 year of trading and Minimum turnover of £200,000.
Representative Example: The representative rate is 6.85% APR (fixed) so if you borrow £100,000 over 60 months at a rate of 6.00% p.a. (fixed) then you will repay £117,670 in total.
Think Business Loans Business Loan
Loan amount
£25,000 to £5,000,000
Representative APR
6.36% APR
Loan term
3 months to 72 months
“Rated 5* “excellent” on Trust pilot. Our experts will compare multiple business finance products across 100s of lenders to find the option that is right for you. 75% of our customers receive an offer.
Think Business Loans is a credit broker and not a lender. Minimum turnover is £200,000 with 1 year trading.
Representative Example: The representative rate is 6.36% APR (fixed) so if you borrow £100,000 over 60 months at a rate of 6.36% p.a. (fixed) you will repay £116,504.71 in total.
Funding Xchange Business Loan
Loan amount
£1,000 to £500,000
Representative APR
10.5% APR
Loan term
1 month to 120 months
Funding Xchange is a credit broker, not a lender. Funding Xchange puts you in control of your business funding giving you access to indicative funding offers within 3 minutes.
Minimum annual turnover of £100,000, trading history of 18 months and Companies House registration are required.
Representative Example: The representative rate is 10.5% APR (variable) so if you borrow £50,000 over 24 months at a rate of 10.5% p.a. (variable) you will repay £55,650 in total.
Funding Options Business Loans
Loan amount
£1,000 to £15,000,000
Representative APR
6.03% APR
Loan term
1 month to 120 months
Funding Options is a Credit Broker and not a Lender. Their APR starts from 2.75% and has an average of 6.03%. 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.
Representative Example: The representative rate is 6.03% APR (variable) so if you borrow £50,000 over 24 months at a rate of 6.03% p.a. (variable) you will repay £53,114.16 in total.
Fluidly Business Loan
Loan amount
£15,000 to £500,000
Representative APR
7.9% APR
Loan term
6 months to 60 months
View funding solutions available to you in under 30 seconds. Fluidly's 5* rated specialists will support you in applying to the best products for you.
Fluidly is a credit broker not a lender. Minimum 2 year of trading and £100k turnover pa.
Representative Example: The representative rate is 7.9% APR (fixed) so if you borrow £100,000 over 24 months at a rate of 4.00% p.a. (fixed) you will repay £104,219.84 in total.

Last updated: 23 February, 2021

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

What is the shortest business loan I can apply for?

Can I apply for a business loan in my own name?

Can I take a payment holiday with a short term business loan?

Do I need a business account to apply for a business loan?

Does my business have a credit record?

About our short term business loans comparison

Who do we include in this comparison?

How do we make money from our comparison?

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