Short-Term Business Loans

Get instant working capital at a fixed interest rate.

No collateral needed to get approved & funded

Get up to $5M within 24 to 48 hours

6-month to 2-year loan term

No collateral requirement

Low documentation

Most popular funding solution for SMBs

Low APR

What Are Short-Term Business Loans?

A short-term business loan is a fixed amount of working capital borrowed from a lender with a predetermined interest rate. You pay it back with regular monthly payments based on the repayment period. No collateral is needed for a term loan.

Short-term loans are the most popular way to fund a business. This type of loan is a flexible small business financing option. They help you handle growth opportunities, manage fluctuating cash flow, or pay for unexpected business needs without the higher interest rates of business credit cards. We structure term loans with early payoff incentives and no prepayment penalties to reduce your cost.

Running a small business can be challenging and time-consuming. When time is money, a short-term loan can provide the working capital in as little as 24 to 72 hours. We help you through the application process to secure the business financing you need with favorable repayment terms.

Benefits of Short-Term Loans

Every enterprise needs working capital and cash flow to grow and succeed. You can borrow it from family and friends, get a shareholder, or apply for a small business loan to meet your financing needs. Each funding option has advantages and disadvantages. Here are the key benefits of getting a quick infusion of financing with a term loan.

Running a small business can be challenging and time-consuming. When time is money, a short-term loan can provide the working capital in as little as 24 to 72 hours. We help you through the application process to secure the business financing you need with favorable repayment terms.

Fast Funding

Compared to bank loans from traditional banks or SBA loans from the U.S. Small Business Administration (SBA), from applying for a short-term loan to getting the lump sum in your business bank account takes just one to two business days. This speed lets you focus on running your company and making your business plan a reality.

Keep Total Control

With a term loan, you maintain full ownership of your business. There are no collateral requirements, meaning short-term loans are a safe financing option.

High Approval Rate

You can qualify for short-term financing whether you have good or bad credit. Check your options with our quick business loan application. We'll compare 75+ online lenders to show you the best short-term loan for your needs.

Tax-Deductible

When you pay interest on a term loan, it's tax-deductible at the end of the year. This further lowers the cost of securing capital to grow your business.

Transparent Process

Term loans are simple, convenient, and transparent. Your dedicated adviser walks you through the terms and payment schedule. We've got your back.

How To Qualify for a Short-Term Business Loan

Being one of the fastest ways to get working capital, there are only three key things to keep in mind when applying.

1. Time in Business

New businesses can qualify, but your business should have been operational for at least three to six months. This is a common eligibility requirement, as time in business is a risk assessment signal for lenders. The longer the duration, the lower the risk for lenders to provide you with financing.

2. Average Monthly Revenue

Most lending companies require your business to generate at least $10K a month to qualify for short-term loans. Your current monthly and annual revenue numbers help lenders calculate the maximum loan amount your business qualifies for.

3. Credit Rating

You can secure a term loan with both good and bad credit. Your personal credit history is one of the factors that determines your interest rate. The higher your credit score, the better the annual percentage rate (APR) you'll receive. As far as credit score requirements, we recommend borrowers have a minimum credit score of 550.

Popular Short-Term Business Loan Uses

Choose how you allocate business funds, whatever your needs. Compared to long-term loans from traditional lenders, which may be used for real estate, this type of financing is a better fit for immediate business needs.

Below are common ways various types of businesses use traditional loans to achieve their goals.

Emergencies

Unplanned costs come up all the time. With the budget set and capital tied up elsewhere, you might not have the cash to pay for an unanticipated business expense. Financing can cover emergency expenses when you're in a bind.

Fixed Costs

Some small business owners choose to allocate funds toward everyday costs. Working capital can help you cover essential expenses, like rent and payroll.

Cyclic Dips

Cash flow can turn negative during a seasonal slump, straining the business. A short-term loan can provide the capital you need to make it through your slowest months comfortably.

Equipment Financing

Machinery and equipment allow you to get the job done and take on new business opportunities. Term loans can be used to purchase the resources you need when you need them.

Gaps in Cash Flow

An infusion of working capital can bridge short-term cash flow gaps, ensuring your bills get paid on time and in full. Whether you're waiting on invoices to be paid or have a pressing need, we have you covered.

FAQs about Short-Term Financing

Getting a term loan is the most popular way to sustain and grow your business. Here are answers to common questions about short-term business loans from founders like yourself.

Are short-term business loans for startup businesses?

Startup businesses are a great fit. Funds can provide working capital to businesses in the early stages and during periods of growth.

What types of short-term business loans are there?

You can choose from several loan products, depending on your specific needs. Common financing options include merchant cash advances (MCAs), business lines of credit, invoice factoring, and installment loans.

How do short-term business loans work?

A lender provides you with working capital for business purposes. With Wize, origination fees and pricing are discussed upfront. The funds are paid back over a preset length of time. The repayment window is shorter in duration than alternative, long-term business loan options.