Short-Term Business Loan
What a Short Term Loan Can Do For Your Business
Short term business loans can often help during one-time events for business owners. Whether you have an unexpected event arise, an opportunity to take advantage of a great deal on a piece of equipment, or maybe you just need some working capital to fulfill a large order. These types of business loans have set repayment terms, fixed interest rates, and a principal value.
Short Term Loan Rates
Loan Amount: $2,500 – $250,000
Loan Term: 1 – 5 years
Interest Rate: 8% – 13%
Payment Frequency: Monthly
Time to Funds: 1 – 4 weeks
Next Loan Product: Business Line of Credit
Typically, most small businesses can qualify for a short term loan, given they have past experience in the related field. Business owners will need to provide tax information and basic loan applications. The interest rate and loan amount will depend on your business revenues, history, and credit score.
What is a Short Term Loan?
These types of loans are sort of like a “normal” business loan. Generally, these loans provide a fixed payment over 1 to 5 years and are normally backed by collateral such as a car or another tangible asset. They can also be used for a wide range of business purposes.
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What Types of Businesses is it Good For?
Term loans are forms of debt financing. Business owners can use them to meet short-term financing needs like managing cash flow, new business opportunities, or working capital. These types of loans are provided by both traditional and non-traditional lenders. Any business that has been in operation for more than two years with good credit can utilize a short term loan.
What are the Minimum Requirements?
Generally, most lenders will consider your credit score, time in business, and possible collateral to determine whether or not the small business owner will be able to get the loan. It is in the best interest of the business owner to have excellent credit, bulletproof P&L statements, and a record of its bank statements.
How Much Will a Term Loan Cost?
Short term loan rates range from eight to thirteen percent. Typically, these loans have fixed interest rates and fixed monthly payments. This structure provides the same payments over the life of the loan and you will know exactly when the loan will be paid off.
Why Use Lendio?
Lendio’s mission is to empower your business by making small business loans simple through options, speed, and trust. Whether you are looking for an acquisition loan or startup loan, Lendio offers hundreds of different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.
Lendio makes the whole process incredibly simple. Our technology instantly sifts through all loan types and lenders, then we match you with the right small business loans, and other business financing options.
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Rob Scott, Small Business Owner
"With Lendio's great options, we can take our business to the next level."
Oyla Losina, Small Business Owner
"The whole process was effortless and in four days we had the money in our bank account."
Interest is money paid regularly at a particular rate for the use of money lent. So if the interest rate on the loan is set at 13% annual, that means you’ll pay 13% of the unpaid money on top of the loan.
Something pledged as security for repayment of a loan, to be forfeited in the event of a default. Meaning, if you don’t pay back the loan, they will gain ownership of the collateral.
Can I trust online lenders?
Most alternative lenders are found online. There are many reputable online lenders who have good reputations and provide valuable services. Like any online service, it is important to exercise caution as some online lenders are better than others. Visit our Trust Pilot page to see what our borrowers think!