If you would like to continue, please fill in your e-mail address and enter a password. Completing the application could take as little as 15 minutes and you will receive a decision within one working day. An application is non-committal.
Ways You Can Use Your Short Term Loan
Manage expenses & boost your cash flow
Calculate Your Repayments
We’re Trusted by Thousands of Businesses
Finance from Spotcap enabled us to grow. Having the support of someone believing in your vision just left us feeling great.
Understanding Short Term Business Loans
What Are Short Term Business Loans?
- A short term business loan is a credit facility that’s designed to be repaid in under one year. Many short term loans are repaid more quickly than that, often within 1 to 2 years. Short term loans tend to have faster application processes than their longer term counterparts.
- Almost every business needs a short-term injection of working capital at some point. It could be to guarantee the payroll for a few months, to buy some vital equipment or to fund a marketing campaign that brings in sales.
- As a result businesses can access finance quickly without long term commitments. As a general rule of thumb, short term business loans tend to have higher APRs than long term products.
Why Is Access to Short Term Credit Important for Small Businesses?
- For small businesses, running low on working capital is a common challenge. Low levels of cash to hand can mean that a business is not able to meet its payment obligations, like making payroll and purchasing stock. This is a problem for small business owners, but also for the economy at large, as most businesses in the UK are small businesses run by sole traders, partnerships or families.
- Limited access to short term finance is one of the biggest challenges and most limiting factors a small business will face, especially during seasonal fluctuations, high-growth periods and temporary downfalls in demand. Many SMEs turn to short term loans to bridge gaps in funding and keep business running smoothly. However, obtaining a credit facility from a traditional lender can be challenging. Fortunately, the advent of alternative finance has diversified the financial options available to SMEs.
SMEs and Short Term Loans: a Historical Problem
- Small businesses are central to the economy’s longevity and growth, and are core drivers of innovation and employment. A significant number of SMEs could use short term finance to grow if it was available to them, but they often find they don’t meet the criteria set out by traditional lenders. Quick access to finance has long been a problem for British small businesses that have survived turbulent economic and market conditions.
- For businesses to acquire short term finance, application processes have become increasingly difficult and rigorous, with increased financial regulation and stricter business performance indicators. Traditional financial methods make it difficult to quickly acquire loans when businesses need them. At the moment, access to loans with traditional financial channels can take as long as two months to acquire, and often require five years of financial documents – not too mention many hours of meetings and signings just to complete the application.
- Small and mid-sized businesses will struggle with these processes. Fortunately, there are now other options available to small businesses. Technological innovation has allowed small businesses to get ahead with smarter and cheaper ways to implement common business practices.