Short-Term Business Loans

• Simple application process for your Short-Term Business Loans.
• Specialized loans to suit working capital needs.

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Get the Best Short-Term Business Loan

Here at AdvancePoint Capital, we offer various short-term business loans and other funding alternatives small businesses can take advantage of today that traditional lenders do not offer.

To keep operations running smoothly, sometimes small business loans are needed to cover the cash flow gaps. Whether it’s money for working capital, cash flow, opportunities, emergencies, or other needs, we provide small businesses with a wide range of loan options through our lender network that traditional lenders do not have.

With traditional lenders, your credit score, time in business, or financials may be an obstacle to getting approved there are other options. We offer alternative short-term financing and business funding to help you get started at reasonable loan costs and the best short-term business loan interest rates.

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AdvancePoint Capital makes the loan application process a simple, straightforward experience.

What is a Short-Term Business Loan?

What is a Short-Term Business Loan?

The term “short term ” typically refers to terms paid back from 3 to 18 months. A term loan offers a fixed amount you are approved for, with a fixed term payback and a fixed payment. Short-term loans are usually used for a quick purchase or to pay an expense, working capital, equipment purchases, improvements, and any other legitimate business purpose. A short-term business loan is typically easier to obtain than alternatives like long-term business loans, which may require a higher credit score or a longer time in business.

How Long are the Terms for a Short-Term Loan?

The use of “short term” means that the loan consists of a fixed length of time in which the borrower must repay the loan ranging from 6 to 18 months or less.

Short-term loans can have fixed costs built into the loan monthly repayment plan, or they can be based on an interest rate with principal and interest. When small business owners need access to funding fast, this loan product is the perfect match. Most lenders or funders can fund in 24 hours or less after approval with your cooperation on this product.

Who Can Qualify for a Short-Term Loan?

Anyone who currently owns a company with revenue can potentially qualify for short-term loans. Qualifications will depend on credit, bank statement cash flow, revenue volume, industry, time in business, and other important factors.

Short-term business loans are a great alternative for owners who have some challenges with credit or other qualifications that a traditional lender may have a problem with. The benefits of short-term financing allow for one or more of the following qualification issues:

  • All credit considered
  • Low monthly or annual revenue
  • No financial statements, such as tax returns, balance sheets, profit & loss, etc.
  • Business bank statement issues such as low daily balances, overdrafts, or NSFs
  • more than 1 year in business considered
  • The need for speed; faster funding than the traditional process allows

Common Reasons to Use a Short-Term Business Loan

How does short-term financing help a business, you ask? Short-term business financing provides businesses with quick access to capital, allowing them to address urgent financial needs such as emergencies, seize time-sensitive opportunities, and cover unexpected expenses. This type of funding can help businesses bridge temporary cash flow gaps, purchase inventory, repair or replace equipment vital to the business, pay suppliers, and go after business opportunities to help grow the business. While some businesses acquire short-term commercial loans to fund their company needs quickly, some need short-term financing for a startup. Regardless, this loan option can be beneficial for multiple reasons, including:

  • Emergency Capital- Emergency capital is often need for those unexpected expenses that arise from operating a business.
  • Working Capital- The go to reason for small businesses that covers purchases, repairs and expenses of the business.  
  • Inventory/Supply- A short term business loan is a great option to purchase inventory or supply.
  • Expansion- Business expansion can include purchasing equipment, furniture, construction expenses or other reasons that money is needed to expand 
  • Advertising/Marketing/Customer Acquisition -Advertising is a great way to expand your customer base but can come with costs that add up fast and impact cash flow. A short term loan can defray those costs and give you the breathing room to expand.
  • Equipment Purchases- Equipment financing can play a critical role in acquiring the equipment you need to operate your business.
  • Business Opportunity- Short term business loan is a great to to capitalize on a time sensitive business opportunity.

Short-Term Loans for Business Owners

Short-Term Business Loan

Small Business Loans

Short-term business loans are defined as repayment terms ranging between 6 to 18 months. This short-term business financing option has a lower minimum credit score requirement and less documentation needed for approval than traditional installment loans. Same-day funding is available.

  • Fast Funding
  • High approval Rates
  • Tax Deductible
  • Fixed costs & Terms
Business Line of Credit

Business Line of Credit

A credit line is a great option for businesses that need to draw money on demand for unexpected emergency expenses but only want to pay interest for a short amount of time. Line of credit has competitive interest rates as well as the ability to pay off early with no prepayment penalties to save interest.

  • Approvals in a day
  • Flexible with drawing money
  • Only pay interest on outstanding balance
  • Rates starting at 1% per month simple interest
Small Business Cash Advance

Business Cash Advance

A business cash advance is an advance of future sales receivables of the business, and not a loan. Repayment terms are flexible and based on a set percentage of future deposits in the bank account of the business.

  • Approvals in day
  • No set term limit
  • High approval Rates
  • Credit accepted as low as 550
Merchant Cash Advance

Merchant Cash Advance

A merchant cash advance is an advance of future credit card processing receivables and is repaid by a set percentage of credit card processing.

  • Quick approval process
  • Payments based on merchant processing sales
  • No personal collateral needed
  • Credit score considered above 550
Invoice Financing or Factoring

Invoice Factoring or Financing

Invoice factoring provides businesses that invoice their clients regularly the ability to get an advance of the business's outstanding invoices within the net terms of the invoice. This advance process accelerates payment of the invoice by the invoice factor company before the client pays. Great for filling the cash flow gap.

  • Same day advance off of invoice
  • All credit considered
  • Quick & Easy approval
  • Factor rates start at 1% of invoice
Business Credit Cards

Business Credit Cards

Credit cards are always an option for immediate purchases and cover emergency expenses. Most credit cards are offered by traditional banks. Credit cards have a personal guarantee.

  • Instant Approvals
  • Card issued for purchases, cash advances and pay expenses
  • Revolving line of credit
  • Simple interest

The fast, convenient, and straightforward way to get the money you need for your business – now!

Get your quote today by filling out our simple form.

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Pros and Cons of Short-Term Business Loans

Pros

  • Access to capital when other traditional options are not available
  • Fast processing time, usually same day to a couple of days
  • No upfront fees for services rendered
  • Higher approval rates than other business funding products

Cons

  • Short term business loan interest rates can be higher than traditional lending
  • Shorter term requires quicker repayment terms verses long term loans
  • Smaller loan amounts due to the shorter term than other financing options
  • Some products don’t have benefits to paying off the loan early
  • Mostly Weekly payments, as monthly payments are not common
  • Personal guarantee is required in some cases
  • No startup businesses
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How to Apply for a Short-Term Business Loan?

There are a variety of short-term funding products to pick through. A good rule of thumb when looking at short-term financing is the better the costs, rates, and terms, the more information (paperwork), requirements, and length of time it will take to get an answer.

  1. Find Lender- Choose companies that have the best product diversify, rates, terms to compare offers.
  2. Application- You will need to fill out an application and supply both business information and personal information for a majority of business owners. Owner’s personal information, including full name, home address, company email, social security number, date of birth, ownership shareholder percentages, etc.
  3. Documentation- In most cases you will be required to provide most recent bank statements as part of your application. In some rare cases for large loan amounts a tax return may be requested.
  4. Offers- Receive offers and compare products rates, terms and conditions, as well as stipulations to fund.
  5. Accept Offer- Select the offer that best suits you need and request final approval.
  6. Approval- Supply stipulations to fund to receive final approval such as signing agreement, verifying identity, ownership and bank account
  7. Funding- Receive funds and apply capital to your needs.

Short-Term Business Loan Interest Rates

Short term interest rates depend on the product you are choosing.

  • Short term Business Loan - Interest rates starting at 9%, Factor rates starting at 1.13%
  • Business Line of Credit - Interest rates starting at 1% per month simple interest
  • Business Cash Advance - Factor rates starting at 1.13%
  • Merchant Cash Advance - Factor rates staring at 1.13%
  • Invoice Financing - Factor rates starting at 1%
  • Business Credit Cards - Introduction rates starting at 0%, up to 27%

Frequently Asked Questions

Advice & Tips to Compare Short-Term Business Loan Offers

When considering a short-term loan, you need to consider several factors – your offers, the agreement terms and conditions, the interest rate and factor rate, closing and funding fees, term duration, guarantees, and payment and collateral requirements.

So, where do you start when beginning your short-term loan search? With the tough questions. 

  • Why do you need the loan? 
  • What’s the actual dollar cost? 
  • How will you use the loan? 
  • Have you checked out all of your options in the marketplace with online lenders? 
  • Am I receiving competitive rates, costs, and repayment terms for my loan inquiry? 
  • Does this loan require collateral? 

And, if you want to be extra thorough, consider conducting a cost-benefit analysis.

When not to choose short-term business loans

The following are a list of reasons that you should look out for and would not be a good fit for short term business loans.

  • The payments are not affordable - You payments monthly add up to an amount that is greater than your comfortable with when you consider your other monthly expenses verses your monthly revenue.
  • Product Selection - You qualify for a better products with lower rates, fees. costs and longer terms.
  • Time to Repay - The time to repay is to short and not affordable
  • The amount Your approved for- The offer isn't enough money to take care of your needs properly.
  • Risk of Default - Whether its the short term, or the payment, you are concerned you can not afford to make the payment based on future predicted revenue

Apply for a Short-Term Business Loan Today!

Applying for a short-term loan with AdvancePoint Capital is as simple as a 1, 2, 3, 4 process. Start with this online form, then fill out the short application page, wait a few hours for your approval, and then get your cash flow to move your business forward.

Get your quote today by filling out our simple form.

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