finance options - short term loans

Compare short term business loans

✅ 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

TRUSTED BY 150K+ UK BUSINESSES

  • £2bn in funding approved

  • Regulated by the FCA since 2015

  • Access 100+ UK business lenders

What is a short term business loan?

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.

Why should you get a short term business loan?

  • Faster access to funding

    With shorter approval times, you can access the funds your business needs, fast.

  • Flexible use

    From paying an upcoming tax bill, to upgrading equipment, or handling a cash flow gap, short term loans can be used for any purpose.

  • No long term commitments

    Perfect for businesses needing quick cash, with repayments completed in a few months, up to 2 years.

How does a short term business loan work?

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.

How to apply for a short term loan with Capitalise

Here’s how getting a short term business loan will work with Capitalise: 

  1. Start your business loan application by answering a few questions online, including how much you need to borrow and what your business’ annual turnover is.  Our platform matches you with the lenders best suited to your needs, from a marketplace of 100+ lenders

  2. Receive dedicated support from one of our funding specialists who will let you know which documents you need to provide and help put together your application 

  3. Provide your documents, generally you’ll need at least 6 months business bank statements and your last set of filed accounts. We offer the option to connect your business bank account securely to simplify the process 

  4. We will send your application to multiple lenders at once. 

  5. If successful, you’ll receive multiple offers.

Is my business eligible for a short term loan?

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.

What are the advantages and disadvantages of a short term business loan?

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.

What can I use a short term business loan for?

Short term business loans can be used for a variety of purposes, including:

  • Covering revenue fluctuations, which is key for seasonal businesses

  • Paying operational costs to keep the business running smoothly

  • Purchasing new stock to meet increasing demand, or restock your inventory

  • Buying equipment to improve or expand operations

  • Funding expansion to grow your business

  • Paying HMRC and VAT bills to meet tax obligations

What are the different types of short term business loans?

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.

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Frequently asked questions