Short Term Business Loans

In the United Kingdom, short-term business loans play a vital role in providing financial flexibility to businesses facing immediate cash flow needs or seeking quick capital for specific projects.

These loans typically have a brief repayment period, ranging from a few months to a year, making them a swift and accessible financing option. Short-term business loans in the UK are often used for purposes such as covering operational expenses, managing seasonal fluctuations, seizing growth opportunities, or addressing unexpected challenges.

Lenders may require less stringent eligibility criteria compared to long-term loans, making them more accessible for small and medium-sized enterprises (SMEs).

While interest rates may be higher than those for longer-term loans, the convenience and speed of obtaining funds make short-term business loans a valuable resource for businesses navigating the dynamic landscape of the UK economy.

What is a short-term business loan?

A short-term business loan refers to a financial arrangement where a business borrows a specific amount of capital with the understanding that it must be repaid within a relatively brief period, typically ranging from a few months to a year.

These loans are structured to address immediate financial needs or capitalize on short-term opportunities, offering companies swift access to funds without the long-term commitment associated with traditional loans.

Widely used in the UK, short-term business loans are often employed to cover working capital requirements, manage cash flow fluctuations, seize time-sensitive opportunities, or address unexpected expenses.

These loans are particularly advantageous for small and medium-sized enterprises (SMEs) due to their expedited approval processes and flexibility. While interest rates may be higher compared to long-term loans, the convenience and speed of securing funds make short-term business loans a valuable financial tool for businesses requiring an immediate capital infusion.

What are the advantages and disadvantages of short term loans?

As with any type of financial product a short term business loan has a number of advantages and disadvantages, these include:

Advantages of Short-Term Loans:

• Quick Access to Funds: Short-term loans offer a rapid approval process, providing businesses with quick access to the necessary capital, which is crucial for addressing immediate financial needs or seizing time-sensitive opportunities.
• Flexible Repayment Terms: With shorter repayment periods, businesses can efficiently manage their debt and financial commitments without being tied to long-term agreements. This flexibility allows for better adaptation to changing financial circumstances.
• Less Stringent Eligibility Criteria: Short-term loans often have more lenient eligibility requirements compared to long-term options, making them accessible to a broader range of businesses, including startups and SMEs.

Disadvantages of Short-Term Loans:

• Higher Interest Rates: Due to the perceived higher risk associated with quick repayment, short-term loans typically come with higher interest rates, potentially increasing the overall cost of borrowing for businesses.
• Limited Loan Amounts: Short-term loans may have lower borrowing limits compared to long-term alternatives, which could be insufficient for large-scale projects or significant capital needs.
• Potential for Strain on Cash Flow: The shorter repayment period may lead to higher periodic repayments, potentially straining a business’s cash flow, especially if revenues fluctuate or unexpected expenses arise during the repayment period.

What interest rates are charged on short term business loans?

As mentioned earlier, short-term business loans typically come with higher interest rates compared to their long-term counterparts. This is attributed to the fact that companies pay a slightly elevated cost for the advantages of swift access to funds and increased flexibility that short-term loans offer.

Fortunately, the positive aspect is that the monthly repayment amounts are fixed, ensuring businesses won’t encounter any unforeseen and costly surprises during the repayment period.

It’s crucial to be mindful of the term Annual Percentage Rate (APR). The APR encompasses the total interest amount that must be repaid annually on the specific loan amount.

This rate considers all additional fees associated with the loan, providing a comprehensive and accurate representation of the complete cost of your business loan. Understanding the APR is essential for making informed financial decisions and assessing the true impact of borrowing on your business.

Can I get a short term business loan with bad credit?

Yes, it is possible to secure a short-term business loan even with a less-than-ideal credit history. Some lenders specialize in providing financing options for businesses with bad credit, recognizing that credit scores may not be the sole indicator of a company’s financial stability or potential for success.

While traditional banks may have stringent credit requirements, alternative lenders, online platforms, or certain government-backed schemes may offer more flexible options.

Keep in mind that interest rates might be higher, and loan terms may vary, but exploring these alternative avenues increases the likelihood of obtaining the necessary capital to address immediate financial needs or propel your business forward, despite a less favorable credit background.

Why choose us for a short term business loan?

Opting for PDQ Funding for a short-term business loan comes with several compelling advantages. PDQ Funding stands out as a reputable and reliable financial partner known for its commitment to assisting businesses in meeting their immediate financial needs.

The application process is streamlined and efficient, allowing for quick approval and access to funds, which is crucial for businesses requiring prompt capital infusion.

We are renowned for our flexibility, accommodating businesses with varying credit histories and providing tailored solutions. With transparent terms and fixed repayment schedules, clients can benefit from a clear understanding of their financial commitments, avoiding unexpected surprises.

Additionally, we offer competitive interest rates and customer-centric approach make it a preferred choice for businesses seeking a trustworthy and supportive partner in navigating the dynamic landscape of short-term financing.

Frequently asked questions

Can I apply for a business loan in my own name?

Yes, you can apply for a business loan in your own name, as long as you’re the registered owner of the company that the loan will be used to help fund.

Are there payment holidays with a short term business loan?

In most cases there will not be any payment holidays, no. Depending on where you apply for a loan this could potentially slightly differ, but it’s doubtful anyone will offer this to you with a short-term loan.

Do I need a business bank account to apply for a business loan?

In most cases providers will expect you to have a business bank account, yes. Again, this could differ from lender to lender, but if you’re expecting to acquire a business loan over any time period, you should have a company bank account for the funds to be paid into. It will also give your application an authoritative boost.

How will a short term loan benefit my business?

Short term loans come packed with many benefits for the consumer. Not only will you pay less interest because your loan doesn’t last last for as long as would with a more extensive term loan, but approval also tends to be much shorter when compared with longer termed loans.

How to apply for a short-term business loan

Applying for PDQ Finance is so simple and very fast. Directors of a limited company are always in a hurry and we understand that cash flow is important to a business.

Follow these easy steps to get a short term funding with us:

Step 1:

Click on the application page. To ensure we get all the information that is needed, we will ask for the following information about your business:

• Your business name or trading name
• The number of years you have traded for
• Average monthly card sales
• The amount you are looking to lend

Step 2:

You will then be directed to the next step, where you will be required to give the following information:

• Title, first name and surname
• Company Address if registered in England and Wales
• Company number & registered office
• Your position within the business
• Best email and telephone number to get hold of you on

Step 3:

Click to accept the terms and conditions and click ‘get my quote’. From here your application will be processed and reviewed by our business manager.

Step 4:

One of our account managers will be in touch by phone or email to discuss the terms of your loan and the loan amount.

Step 5:

After carefully reading through the terms of agreement, please sign the relevant documentation and return it to the lender