Short-Term Business Loans

Need funding fast? Short-term lenders, like us here at Funding Guru, offer same-day business loans or instant approval options, especially for established businesses with solid revenue.

What Our Short-Term Business Loans Offer You

What is a Short-Term Business Loan?

A short-term business loan is a loan designed to meet the immediate financing needs of small- and medium-sized enterprises (SMEs). Typically, these loans are repaid within 3 to 18 months, making them ideal for companies needing an immediate small cash injection.

Short-term business loans are perfect for:

Covering payroll or rent during low-performing months
Purchasing inventory before a busy sales period
Financing small equipment upgrades
Navigating unplanned expenses
Supplier payments due before customer invoices are paid
Sudden equipment breakdowns

Types of Short-Term Business Loans

There’s no one-size-fits-all solution when it comes to business finance. Below are some of the most common types of short-term loans available to UK businesses:

Merchant Cash Advance (MCA)

Repayments based on a percentage of daily card sales
Ideal for retail, hospitality and eCommerce businesses

Invoice Financing

Unlock cash tied up in unpaid invoices
Boosts working capital without new debt

Line of Credit

Revolving facility you can draw from as needed
Pay interest only on what you use

Short-Term Instalment Loan

Fixed loan amount with scheduled repayments
Terms typically range from 3 to 12 months

Secured vs Unsecured Loans

Secured loans require collateral but offer lower rates
Unsecured loans don’t require assets, but often offer higher rates

Each loan type has its own advantages and disadvantages, and may be the most appropriate depending on your business’ situation, goals, finances and needs. Understanding their best use cases helps you choose the right solution.

How to Apply for a Short-Term Business Loan

Interest Rates and Costs Explained

The rates and costs associated with short-term business loans vary by lender, product and your credit history. Here’s what you might expect to see from a typical lender:

Interest Rate Types:

Fixed: Consistent monthly repayments
Variable: Rates that fluctuate with market conditions

Typical APRs:

10% to 50% annualised, depending on risk, loan type and term length. Due to the increased risk on the side of the lender, many short-term business loan lenders offer high interest rates.

Other Costs:

Setup or arrangement fees
Early repayment fees (may apply with some lenders)
Late payment penalties

Compared to long-term loans, short-term options have higher APRs but lower total borrowing costs due to shorter repayment periods.

Compare the Best Short-Term Business Loans

Use this comparison table (correct as of July 2025) to understand your options when it comes to short-term loans:

Lender	Loan size	Term	Rate	Fee	Speed
Barclays	£1,000 – £25,000	10 years max	Fixed	None	1-2 days
HSBC	£1,000 – £25,000	1 – 10 years	Fixed	None	2-5 days
Lloyds Bank	£1,000 – £50,000	1 – 10 years	Variable	1.5%	1-2 days
NatWest	£1,000+	0 – 25 years	Variable or fixed	Negotiable	Same day
Funding Guru	£25,000+	Flexible	Variable or fixed	Negotiable	Same day

Short-Term Business Loans with Bad Credit

If you’re concerned about your credit history, try not to worry – having a low credit score doesn’t necessarily instantly disqualify you from a short-term business loan.

Your Options:

No credit check loans: Limited, but available from some lenders
Soft credit checks: Won’t affect your score
Collateral-backed loans: Offer more flexibility if your score is low

Responsible Borrowing Advice:

Don’t overextend your repayments
Focus on loans that help generate cash flow
Rebuild your score with consistent repayment behaviour

At Funding Guru, we help you understand your risk profile and offer flexible and affordable options for businesses with poor credit.

Loans for Startups and Small Businesses

Can start-ups get short-term loans?

Yes, start-up loans are available, but with less history behind you, it’s often more challenging. Many short-term business loan lenders prefer businesses with at least one year’s trading history, but options still exist for new companies.

Funding Solutions Include:

Start-up loans backed by the British Business Bank
Unsecured short-term loans with personal guarantees
Revenue-based loans for early traction businesses

Need help? Check out our start-up loan page for more information.

Ready to Get Started?

Apply for a short-term business loan today with Funding Guru. Whether you’re dealing with a cash flow crunch or seizing an unexpected opportunity, you can get approved and have the cash in your account within just 48 hours.

Testimonials

"We have worked with Funding Guru for varied lending needs for over 10 years now. From arranging invoice finance, to leasing new vehicles, to cashflow assistance - Matt and his team never disappoint. When we first started our business securing finance was far from easy but Funding Guru provided solutions that few others couldn't and they have continued to support us as our business has developed and grown to an 8 figure turnover."

"Coming out of COVID our business, like most, wasn't in a great place. We hadn't been able to trade for over a year and finding finance options was proving difficult for us. Funding Guru was prepared to look at what a successful business we had been prior to the start of the pandemic, and what great opportunities lay ahead for us. The facility they provided solved our cashflow needs and allowed us to concentrate on being the UK's premier race team!'

"I knew Matt long before he was a lender, when he was building his own businesses and finding creative ways to finance his growth. So as soon as he started Funding Guru I knew there was only going to be one person to talk to about my own business finance requirements!"

Frequently Asked Questions

What is an instant short-term business loan?

An instant short-term business loan is a loan that can be approved and funded within as little as 24 hours, often requiring minimal paperwork and soft credit checks, to ensure business’ instant cash-related needs are met.

How long is a short-term business loan?

Typically between 3 and 18 months.

What’s the best loan for a small business?

It depends on your cash flow, revenue model and whether you need flexibility, speed or low rates. Use our comparison service for tailored recommendations.

Do you need good credit to qualify for a short-term business loan?

Not always. Some lenders, such as ourselves at Funding Guru, consider business performance over credit score.

Does Your Business Require a Short-Term Loan?

Borrow up to £5million Within Days