Short-Term Business Loans

Short-duration financing designed for operational needs, cash flow gaps, and time-sensitive opportunities—available across the USA and Canada based on program fit.

Short-term business loans are typically used when you need capital quickly and plan to repay over a shorter horizon than a traditional term loan. They can support inventory, payroll timing, vendor payments, emergency repairs, and other near-term operating needs.

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Short-term loans may fit if you need:

  • Funding for 3–18 month needs
  • A defined purpose and repayment plan
  • Faster access than long-cycle programs
  • Cash flow coverage that can handle frequent payments
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What Is a Short-Term Business Loan?

A short-term business loan provides a lump sum of capital that is repaid over a shorter period than traditional term loans. Repayment schedules are often more frequent, and underwriting typically focuses on recent cash flow, banking activity, and business performance rather than long-term projections alone.

Loan structures, pricing models, and repayment frequency vary by lender and program, making comparison and fit an important part of the process.

“Short-term loans are not identical to merchant cash advances. The repayment method and pricing structure differ by product type.”

Common Uses for Short-Term Financing

  • Cover payroll during receivable or payment delays
  • Purchase inventory ahead of peak or seasonal demand
  • Pay vendors to fulfill orders or unlock early-payment discounts
  • Fund marketing campaigns with near-term revenue goals
  • Handle emergency repairs or urgent operational expenses
  • Bridge timing gaps between expenses and incoming revenue

How Short-Term Business Loans Typically Work

Define the Need

Short-term loans work best when the funding purpose, amount, and timeline are clearly defined.

Cash Flow Review

Programs evaluate revenue trends, deposit consistency, banking activity, and relevant credit factors.

Structured Repayment

Payments may be weekly or daily depending on the lender and product design, so cash flow planning matters.

Typical Qualification Factors

Key criteria lenders review to determine eligibility, structure, and approval outcomes.

Time in Business

Businesses must demonstrate sufficient operating history to show stability, consistency, and ability to support short-term repayment obligations.

Revenue or Cash Flow

Lenders typically require steady revenue or cash flow to ensure payments can be supported throughout the loan term consistently.

Business Credit Profile

Credit history helps lenders assess risk, influencing approval likelihood, pricing, loan structure, and available repayment options overall.

Industry Type

Some industries carry higher risk, and eligibility may depend on lender guidelines and sector-specific performance trends considered.

Banking Activity

Consistent deposits and stable bank account activity indicate reliable cash flow and improve overall qualification strength significantly.

Documentation

Basic financial documents, including bank statements, are required to verify revenue, operations, and business legitimacy accurately.