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Short term business loan

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Short term business loan

If you want a short term business loan, then you need the money fast!

Short term borrowing is usually repaid in 12 months or less, and is often used to resolve cash flow problems. Because you need the money quickly, you may risk getting a poor deal and end up having to pay more than you should, you may also get tied into a product, which doesn’t give you the flexibility that your business needs.

Although you need the money fast, it is still worth planning as far ahead as you can, and getting some independent advice if possible. There are a variety of business support agencies who can provide advice on the choices available. You can also contact a commercial finance broker, for some independent and free advice. Brokers will be able to put you in touch with potential lenders and will help you arrange your loan.

Alternatives to short term business loans

Just because you need money quickly it doesn’t always mean that a short term business loan is the only solution for your business. Before you commit to a business loan, it may be worth reviewing the other finance options available to you, which include:

  • Invoice Factoring
  • Invoice Discounting
  • Business over draft
  • Credit protection

Try a different approach

Invoice factoring is an alternative finance option and it is gaining popularity. Unlike a loan, factoring doesn’t provide you with a lump sum that you have to pay off over time, but instead it can release up to 95% of the cash tied up in your unpaid invoices, often within 24 hours of you raising the invoice. This means that when you raise an invoice you no longer have to wait between 30-90 days for the cash therefore improving your cash flow and allowing you to concentrate on growing your business.

The benefits of factoring are:

  • Its flexible
  • Its controllable
  • Its not a loan, you have already earned the money
  • The available working capital grows with your business
  • You don’t need to offer up assets as security
  • You save time on credit control

For further information regarding business loans please contact our advice team on 0800 597 4757 or apply online using the form opposite.

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