What is a Short Term Business Loan?
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These loans typically have repayment terms lasting between three to 18 months and come with annual percentage rates (APRs) ranging from as low as 3% to 50% or higher. | A short-term business loan is a type of financing that allows business owners to access cash for various purposes, such as covering emergency expenses, filling gaps in cash flow, buying inventory, or seizing business opportunities. | They’re often offered by online lenders (i.e. ARF), who can process applications and disburse funds faster than most traditional lenders. |
Short Term Business Loan vs. Traditional Business Loans
Short-term loans are a specific kind of business loan that you have to pay back sooner than other business loans (usually within six months to three years).
Generally, they have lower loan amounts and higher interest rates than traditional long-term loans - but they’re also easier to qualify for and faster to get.
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