Sometimes in business, we need an injection of funding for a short period of time to help overcome a cashflow issue, seasonal fluctuation, pay VAT or tax, support the purchase of equipment or assist the business to grow. The need is only short-term and can be easily repaid within a short period which is where a short-term loan is a good option. We have explored below some of the leading providers who specialise in providing specific short-term loan products, other providers may also offer loans on short terms.
Companies are ranked in no particular order.
| Company | Min Loan Amount | Max Loan Amount | Max Term |
|---|---|---|---|
| CMF Business Finance | Not stated | Not stated | 12 months |
| Cubefunder | £5,000 | £100,000 | 12 months |
| Fleximize | £5,000 | £500,000 | 12 months |
| iwoca | £1,000 | £200,000 | 12 months |
| Rangewell | £5,000 | £25,000 | 12 months |
1. CMF Business Finance
- Offers short-term cash flow loans
- Suitable for tax, VAT and more
- Fast turnaround
- Easy to set up
- Less costly form of funding for businesses
- Terms up to 1 year
- Structured borrowing that allows you to plan
- Deductible interest charges
- Quotes available online or over the phone
- Call them on 01928 739712
Website CMF Business Finance short-term loan
Read the full CMF Business Finance review
2. Cubefunder
- Specialises in short-term business loans
- Typically, terms are from 3 to 12 months
- Loans from £5,000 to £100,000
- Flexible repayment terms to match your business cash flow
- Can be used for any purpose
- Apply online in less than 2 minutes
- A dedicated team will contact you to understand your business better
- Will consider many businesses turned down by others
- Supports businesses that have been trading for over 3 months
- Contact them on 0203 137 2417
Website Cubefunder short-term loan
Read the full Cubefunder review
3. Fleximize
- Offers Flexiloan Lite short-term loans
- Suitable for businesses that have been trading for over 6 months
- Loans from £5,000 to £500,000
- Terms of 3 to 12 months
- Rates of 1.9-3.9% per month
- Choice of secured and unsecured loans
- Provides decisions in 24 hours
- Offers top-ups and repayment holidays
- Suitable for a variety of funding reasons
- Apply online or call 0207 100 0110
Website Fleximize short-term loan
Read the full Fleximize review
4. iwoca
- Offers a short-term Flexi-Loan
- Simple application
- Quick decision within 1 working day
- Loans from £1,000 to £200,000
- Terms of 12 months
- No early repayment fees
- Dedicated account manager
- Suitable for a wide range of purposes
- Highly rated on Trustpilot
- Apply online
Website iwoca short-term loan
Read the full iwoca review
5. Rangewell
- Offers short-term finance solutions
- Loans from £5,000 to £25,000
- Funding above £25,000 can be arranged
- Terms up to 12 months
- Options of unsecured or secured borrowing
- Rates from 4.9%
- Simple and fast to be arranged
- Funding can be received within days
- Suitable for those with adverse credit
- Apply online or call 0204 525 5312
Website Rangewell short-term loan
How does a short-term loan work?
A short-term loan works very much like other loans but has much shorter repayment terms. A short-term loan is typically for periods up to 12 months and has fixed repayments although some lenders may offer more flexible repayment terms. Like many other loans, a short-term loan can be an unsecured or secured loan that requires you to undergo a credit assessment to work out how much you are eligible to borrow. The application process and decision making tend to be fairly quick, especially for unsecured loans.
How much can I borrow?
The amount you can borrow on a short-term will vary depending on the lender but typically lenders offer from £5,000 up to £500,000, however, the maximum amount you can borrow will be determined by your financial status which will be assessed by the lender upon application.
How much will a short-term loan cost?
The cost of a short-term loan varies depending on the lender, the amount borrowed and the terms of the loan. Those quoting their loan rates for short-term loans are in the range of 1-4.9% per month.
How long can I borrow money for?
A short-term loan is typically for a period of up to 12 months but some lenders may offer slightly longer periods and the minimum term can vary. Often short-term loans don’t have early repayment fees as the nature of the loan is to allow you to repay the loan as quickly as possible and therefore they don’t tend to penalise you for repaying early, however, you should check the loan terms before taking out the loan to see if this applies.
How to apply for a short-term loan?
Most short-term loan lenders allow you to apply quickly and easily online and provide a backup or follow up service over the phone. The application process for most lenders is fast with decisions being made quickly and funds being released soon after.