Explore more
insights
small business, business loan
If you're looking to get a business loan, you might be wondering if a short term, or long term option is best for you.
Both short term business loans and long term business loans can offer advantages that cater to different business needs. We explore the key differences and provide insights to help you make an informed decision for your business.
1. Assess your needs
The choice between short term and long term business loans should align with your specific business needs. Consider the purpose of the loan, the urgency of funds, and your repayment capacity. Short term loans are great for immediate needs, while long term loans are better suited for significant investments.
2. Forecast your business’ cash flow
Examine your business's financial health and cash flow forecasts. If your business can comfortably manage the monthly repayments associated with a long term loan, it may be the right choice. However, if you need funds quickly and can afford slightly higher interest rates, a short term loan might be more suitable.
3. Check your eligibility
Your business’ credit score, how long you have been trading and your overall financial health could affect whether you’re eligible for a short term or long term business loan. Use our business loan calculator to check your eligibility for funding and see which options might be available for your business.
4. Plan for growth
You should also consider your long-term business goals. If you anticipate rapid growth or expansion in the near future, a long term loan can provide the stability and resources needed to support your business's progression and growth.
The choice between short term and long term business loans isn't one-size-fits-all. It depends on your unique circumstances, financial health, and growth aspirations. By understanding the key differences between these two options, you can make an informed decision that propels your business towards success.
If you’re looking for a business loan, you can find funding with Capitalise. We’ll provide you with dedicated support from a funding specialist who can help you find the right option for your business.
✅ Know your business credit score
✅ Understand the factors impacting it
✅ Alerts on risks to your profile
✅ All features from as low as £19/month
Capitalise believe in creating a diverse, sustainable future. So we come up with new ideas, and see existing ones in a new light. We work with the people who share our vision, taking action to make a difference. We challenge businesses to find new ways to guide their futures.
Have insights about the accounting community sent straight to your inbox. Sign up to our newsletter.
Including the steps you need to get started quickly
