It’s not just fast – it’s also flexible.

A short term loan is like the Swiss Army Knife of loans – it’s handy, flexible, and able to get you out of a bind. You can use it to cover unexpected costs, survive a slump, finance a short term project, or even capitalize on a new business opportunity. It’s definitely the loan you want in your back pocket.

Scoring a short term loan isn’t as hard as you think.

If you have solid credit and you’ve been in business for two years or more, you have a good chance of qualifying for a short term loan. Your lender may also ask you to put down some collateral to secure the loan.

You can find out if you qualify in less time than it takes to pick up your morning latte: just fill out our no-cost, no-obligation application to compare short term loan options

By providing you with a lump sum of cash that you can pay off over a set period of time, term loans can be a convenient way to get the funds you need for a specific larger purchase. Typically used to finance vehicles, machinery, or even real estate, term loans can also help to fund business ventures or buy inventory in bulk. Read this guide to learn more about term loans and which type could work best for you.

A business term loan is perhaps the most straightforward type of financing that you can access as a small business owner. The way a term loan works is that an approved borrower would receive a lump-sum upfront from their lender and would repay the loan in a predetermined repayment schedule, or over the term of their loan.

You can use a term loan for almost any business purpose. A term loan is designed to help you meet many types of short- and long-term business goals. Some examples include: hiring more staff, buying equipment, expanding locations, or renovating an existing location.

Term loans can be a good option for established businesses with good credit history and at least a few years of operating history under their belt. Term loans can also be a faster option for businesses looking to take out larger loans but don’t want to wait for the longer Small Business Administration (SBA) loan application process.

It depends. In some cases, term loans will require collateral, such as personal or business assets, based on the lending partner you’re matched with and the duration of the loan. While it is best to check with your lender, you can expect that long-term loans (loans between three and 10 years), which can be used for a major investment such as an expansion, may require some type of collateral.

The repayment period can be anywhere from three (3) months to ten (10) years. Similar to a mortgage or auto loan, you repay a term loan with fixed payments over a fixed period of time, or term (hence the name), in weekly, bi-weekly or monthly installments.

One of the most attractive aspects of a business term loan is it’s payment predictability. Since you’re paying a fixed amount over a fixed period of time, it makes predicting cash flow much easier compared to some other financing options. Other benefits include the flexibility you have in using your loan proceeds, and the fact that you can improve your business credit by making your payments in full and on time.

Term loans are typically a better fit for more established businesses that have been in operation for at least a few years. If you’re a start-up or you’re still working on building up your business credit, a term loan may not be the best option for your business.

• Personal and business credit history
• Time in business and operating history
• Industry
• Financial statements such as cash flow projections, profit and loss statements, and balance sheets
• At least one year’s worth of personal or business tax returns
• Recent bank statements