Quick answer: A short-term business loan is funding repaid over a few months to about two years, used to cover a specific, time-limited need such as stock, a large order, or a cash-flow gap, rather than long-term investment. New Heights Finance arranges short-term business funding by matching your application across a panel of lenders, based on your turnover, security and timeline. Approval and terms depend on the lender; funding can move quickly once you’re approved.
Comparing options? See how this fits alongside a working capital loan, a secured business loan or a quick business loan.
Key facts
| Typical term | A few months up to around 24 months |
| Security | May be arranged on an unsecured basis (based on turnover and trading history) or secured against business assets, depending on the lender |
| Speed | Often 24 to 72 hours from approval to payout, subject to the lender’s process |
| Who arranges it | New Heights Finance, as a broker, across a panel of lenders. NHF is not the lender |
What is a short-term business loan?
A short-term business loan is business funding with a repayment term of roughly a few months up to two years, as opposed to a term loan or asset finance facility that can run for five years or more. Businesses use it to close a specific, time-limited gap, such as restocking before a busy season, covering a large order, or bridging a cash-flow dip, rather than to fund a long-term asset purchase.
Because the term is short, lenders typically size the loan and the repayment schedule around your trading history and expected cash flow over that period, rather than against a long-term asset.
How does a short-term business loan work?
- You apply, usually with recent bank statements and basic business information.
- New Heights Finance reviews your position, including turnover, trading history and what you need the funding for, and matches you to lenders on its panel whose criteria fit.
- The lender assesses your application and, where relevant, the value of any assets offered as security.
- If approved, funding is paid out, often within 24 to 72 hours of approval, though this depends on the lender and how complete your documentation is.
- You repay over the agreed short-term period, on the schedule set by the lender.
Because NHF works with a panel rather than one lender, the specific process, documentation and repayment structure vary by which lender your application is matched to.
Who qualifies for a short-term business loan?
Lender criteria vary, but short-term business funding is typically considered for businesses that can show a trading history, regular turnover reflected in recent bank statements, and a clear, specific use for the funds within the short repayment window. If your business doesn’t meet a particular lender’s criteria, a broker’s value is in matching you to a different lender on the panel rather than a single yes-or-no outcome from one institution.
What can a short-term business loan be used for?
- Buying stock or inventory ahead of a busy trading period
- Covering the cost of fulfilling a large order before the customer pays
- Bridging a temporary cash-flow gap between outgoing costs and incoming payments
- Short, defined projects that will generate revenue within the loan term
It is not typically the right tool for funding a long-term asset purchase (see equipment finance) or an ongoing, recurring cash-flow need (see working capital loans below).
What does a short-term business loan cost?
Cost depends on the lender, the loan amount, the term and your risk profile, so a single rate cannot be quoted here. As a broker, New Heights Finance’s role is to present the options available to you so you can compare the total cost, not only the headline rate, before deciding. Use the business loan calculator to model repayments once you have an indicative rate and term from a matched lender.
Short-term business loans vs other business funding
| Short-term business loan | Working capital loan | Secured business loan | Revolving credit facility | |
|---|---|---|---|---|
| Best for | A specific, time-limited need | An ongoing or recurring cash-flow gap | Larger amounts and longer terms, against business assets | Recurring access to funds you draw and repay as needed |
| Term | A few months to about 24 months | Ongoing, revolving or a short fixed term | Typically longer | Ongoing, with a set limit |
| Security | May be unsecured or secured, depending on the lender | May be unsecured or secured | Secured against business assets | Depends on the lender |
Documents you’ll typically need
- Recent bank statements
- Proof of business registration
- ID of the business owner(s) or directors
- Evidence of the specific need the funding will cover, for example a supplier quote or purchase order, where relevant
Exact requirements depend on which lender you’re matched to.
See full business loan requirements and how to apply.
FAQs
Is a short-term business loan secured or unsecured?
It depends on the lender and your business’s profile. Some short-term facilities are arranged without collateral, based on turnover and trading history; others are secured against business assets. New Heights Finance will match you to lenders whose terms fit your situation.
How fast can I get a short-term business loan?
Funding can move within 24 to 72 hours of approval in many cases, but this depends on the lender, how complete your documents are, and the size of the facility. No timeline is guaranteed.
What’s the difference between a short-term business loan and a working capital loan?
A short-term business loan is usually taken for a specific, time-limited need with a fixed repayment schedule. A working capital loan is structured around your ongoing cash-flow cycle and may be revolving rather than a single fixed-term facility.
Can startups get a short-term business loan?
New Heights Finance’s business loan panel is generally aimed at established, trading businesses rather than brand-new startups. Requirements vary by lender.
Does New Heights Finance lend the money directly?
No. New Heights Finance is a broker. We arrange funding by matching your application to lenders on our panel; we do not lend directly, and no lender can guarantee approval.
Speak to New Heights Finance about a short-term business loan.