How Easy Is It to Get a Short-Term Business Loan?

When you’re a small business and looking to make a step to grow your company, there are many obstacles that you need to overcome. In most cases, having the readily available cash is the main stumbling block businesses face and gaining the necessary funds can feel like an unobtainable goal without help from an external source.

Taking out a short-term business loan is often the first thought for most companies who are looking to grow quickly, but some business owners have several questions surrounding how these loans work. In this article, we look to address some of the frequently asked questions around short term business loans, from how easy it is to take out short-term business loans to the repayment terms most loans have.

Is A Short-Term Business Loan Easy to Apply For?

When you’re in the process of searching for the perfect funding partner, many business owners are keen on finding a lender who has a simple application form, with an almost instantaneous decision on the loan. Therefore, it is no wonder business owners are in a rush to get a decision too, with many working around the clock to secure the future of their company, taking the time to fill out lengthy loan application forms is something that should be avoided at all costs.

Thankfully, with the advancements in technology that we have seen in the 21st century all forms of loans are considerably easier to apply for than ever before.  Short term business loans are possibly one of the easiest loans to apply for and once your loan has been approved, you can expect the funds to be transferred directly to your business bank account within as little as 24 hours.

If you do happen to choose to use Ping Finance when searching for a short term business loan, the process of applying for your loan couldn’t be simpler. All you need do is complete one simple application form and we’ll submit your loan details to a range of lenders and handle the rest of the process for you. Following an offer being accepted on your loan, you will be allocated a personal advisor who will keep you up to date with your loan applications. We take great pride in being able to take the pressure off business owners during this process, allowing you to focus on what matters most to you: growing your business.

Is A Short-Term Business Loan Right for My Business?

It’s well documented that the vast majority of businesses don’t start turning a profit until their third year of trading, which can prove problematic when you’re in the process of trying to grow your business in a short period of time. This is why short-term business loans are ideal for any business looking to access working capital in order to grow quickly.

Essentially, a short-term business loan is right for any business but completely depends on your situation. There are many reasons that businesses will take out a short-term business loan, some of the most common include:

  • Fund Business Growth – The most common reason businesses take out this form of loan is to gain an influx of working capital to carry out growth plans immediately. This can include a recruitment drive or an expansion of current premises to facilitate a period of growth for your company.
  • Replenish Stock Inventory – You may have experienced a busy period of sales and are now waiting for invoices to be paid. During this period, it can be difficult to find the funds to replenish your stock, meaning that you’re missing out on more sales. Short term business loans could be the answer to your problems in this case, but it’s also worth considering invoice finance too, as this can free up working capital with a loan offset against your outstanding invoices.
  • Investing in New Equipment – For some small businesses, you may find that demand for your products or services outweighs your productivity levels. This can prove problematic as you’re keen to expand your offering to meet demand, but don’t have the working capital to do so. Short term business loans and asset finance can offer your business the boost it needs to start meeting those orders a whole lot quicker.
  • Unexpected Bills – An unexpectedly large electricity or tax bill can put a serious strain on your business, especially if you hadn’t accounted for such a large expenditure. Taking out a short-term business loan can alleviate this problem and allow your business to continue operating as normal.

It’s also worth noting that one of the main advantages short term business loans boast is that they are typically offered on an unsecured basis, which means that you won’t need to put any of your personal business assets at risk in order to be accepted. It is worth noting, however, that directors will be asked to give a personal guarantee to pay back the loan if the business cannot.


When Do I Need to Repay My Short-Term Business Loan?

The length of a short-term business loan can vary, but generally, you’ll find that terms last up to 2 years. Most lenders are pretty flexible with repayment plans for these types of loans, and you’ll find that almost any business can find a short-term business loan which is perfect for their specific requirements.

It’s also worth noting that most lenders do not allow you to take a payment holiday with short term business loans. If you do choose to pause payments on your loan for whatever reason, you’ll be subject to some pretty hefty interest charges each month.

Business finances
If you are in the market for a short-term business loan to help finance taking your business to the next level, our team of experts are on hand to provide you with all the assistance you need to make an informed decision. At Ping Finance, we take great pride in ensuring all of our clients are given all the information they need to be sure they are taking out the perfect short-term business loan for their specific needs.

Back to Blog