✅ Check your eligibility, no affect to your credit score
✅ Access short term business loans from £5,000+
✅ Quickly apply and compare offers from 100+ lenders
✅ Get support from a dedicated funding expert
✅ Get funding in as little as 48 hours
Many small businesses face cash flow challenges, whether it's caused by a seasonal fluctuation, or an unexpected expense. Short term business loans provide a quick solution to plug these temporary gaps without locking you into long term commitments.
Short term loans offer fast access to cash for your business, with repayment terms lasting from a few months up to a maximum of two years.
With shorter approval times, you can access the funds your business needs, fast.
From paying an upcoming tax bill, to upgrading equipment, or handling a cash flow gap, short term loans can be used for any purpose.
Perfect for businesses needing quick cash, with repayments completed in a few months, up to 2 years.
With a short term loan, your business receives a lump sum amount. The loan will then be repaid - including interest - in fixed monthly repayments over a given period of time, usually a maximum of 2 years. There are also other types of short term loans that work differently. For example, a revolving credit facility can act as a short term loan.
This option works differently as you only pay interest on the amount you use.
Which type of short term loan you choose will depend on your business’ individual circumstances. Your dedicated funding specialist at Capitalise will help you to understand what’s available and find the right solution for you. We break down how other types of short term business loans work later on.
Here’s how getting a short term business loan will work with Capitalise:
Your business’ eligibility for a short term business loan will depend on the lender. Typically, to get a short term business loan, your business will need:
By signing up for a free Capitalise account, you can check your eligibility for funding from over 100 UK lenders and see if there’s an option that’s the right fit for you.
| Advantages | Disadvantages |
|---|---|
| Short term loans are usually processed quickly, so businesses can get the money they need fast - often in as little as 48 hours. | Short term loans usually have higher interest rates than longer term loans, which can make the cost of borrowing higher. |
| You can use the loan for many different purposes, such as paying bills, buying stock, or covering unexpected costs. | The amount you can borrow is generally smaller, so it might not be enough for bigger projects or major expenses |
| Successfully repaying short term loans can help establish or improve your business credit profile. | The frequent repayments can sometimes negatively impact a business’ cash flow. |
Short term business loans can be used for a variety of purposes, including:
| Loan type | How it works |
|---|---|
| Unsecured business loan | An unsecured short term loan doesn’t require any collateral, which means no assets are at risk. However, the interest rates are usually higher since there’s no security for the lender. |
| Revolving credit facility | This option allows you to borrow and repay money as needed, up to a limited amount. You only pay interest on the amount you use, making it a flexible and cost-effective option. |
| Business credit card | Business credit cards allow you to make purchases on credit, often with rewards like cashback or points. However, they typically have higher interest rates. |
| No personal guarantee business loans | These loans do not require a personal guarantee, meaning the business owner’s personal assets are not at risk if the business defaults on the loan, offering peace of mind. |
| Startup loans | Designed for new businesses with little to no financial history, startup loans help entrepreneurs cover initial expenses such as equipment, inventory, and marketing to get their business off the ground. |
| Merchant cash advance | A merchant cash advance provides funding that’s repaid through a percentage of daily sales, making it ideal for businesses with fluctuating revenues. Repayments adjust based on how much the business earns. |
If you’re unsure which type is best suited to your business needs, search for a short term business loan with Capitalise. Our dedicated funding specialists will help you to find the best option for your business.
Capitalise is an FCA-regulated platform built to support UK businesses in taking control of their financial health. We make it easy for business owners to access funding by connecting them with over 100 trusted UK lenders.
Our intelligent platform matches you with lenders based on your business needs and ranks options based on past success rates - helping you make confident, informed decisions.
When you apply through Capitalise, you're not alone. Every application is supported by a dedicated funding specialist who will:
With Capitalise, you can compare offers side by side and secure the best funding solution for your business with expert support at every step.
A short term business loan is a type of finance designed to help businesses cover immediate needs like cash flow gaps, or inventory purchases. It’s typically repaid within 12 months, often with either daily, weekly, or monthly payments.
It may be more difficult to secure a short term loan with bad business credit, especially if you don’t have assets to use as collateral. Some lenders may still offer a loan, but you could face very high interest rates due to the increased risk involved.
Generally, interest rates for short term loans are higher than for long term loans. However, because the loan term is shorter, the total cost may be lower overall.
The exact cost of a short term business loan depends on several factors, including the lender, the loan term, the financial strength of your business, and your business credit score. Some lenders may also charge fees, which can affect the total cost of the loan. It’s important to review all fees, such as arrangement or prepayment penalties, to understand the cost of the loan.
How much you can afford to borrow with a short term loan will depend on a variety of factors, including:
When you sign up to Capitalise, you’ll be able to check your funding eligibility for free. We’ll use data to give you an estimate of how much you may be eligible to borrow.
If you’d just like an estimate of how much you could afford, you can use our Business Loan Calculator. This will show you how much your monthly repayments could be and the total cost of a loan, so you get an idea of what you could afford to repay.
Whether you need to provide a personal guarantee depends on the lender and the loan you’re applying for. In many cases, short-term business loans do require a personal guarantee. This means that if the business can’t repay the loan, the director agrees to pay it back personally.
However, some lenders may not ask for a personal guarantee, especially if the loan is secured by an asset, if your business has a strong financial history, or if the loan is based on your debtor book (like with invoice financing).
If you prefer not to provide a personal guarantee, you can explore our no personal guarantee loan options. You can also talk to one of our funding specialists about what is available when you apply.
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