Main features of our short term business loans
How does a short term loan from Spotcap work?
Spotcap's business loans are provided in the form of a credit line. Here is the process and how it works.
Ways you can use your short term loan
Clear, transparent pricing
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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.
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