Short-Term Business Loans

Get access to revolving funds when you need it most

Dane Panes

October 25, 2021

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Short-Term Business Loans

Why Short-Term Business Loans Can Be the Ultimate Solution to Achieving Your Business Objectives

As a business owner, you may not have given this much thought, but did you know a short-term business loan can in practical terms, be the ultimate solution to achieving your business objectives?

Well indeed it can be, and here’s how.

A short-term business loan is a financing solution that’s repaid faster than a traditional business loan. Once qualified, lenders give you a lump-sum payment which you then can generally repay within three to 18 months.

The exact repayment terms will vary depending on your borrowing power, but the repayment terms for most short-term loans can last up to 18 months.

Many Business Owners Prefer Short-term Business Loans Because of its Flexibility

As a matter of fact, this type of financing is best used to cover short-term expenses, but what’s so attractive about this kind of funding is – you can also use the funds for almost every other business expense such as:

Bridging cash flow gaps

Paying off debt

Seizing new and attractive business opportunities

Dealing with unexpected emergency expenses

Managing your cash flow

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Why SMB is Your Ideal Business Partner

With over 10 years of business lending experience, SMB Compass has the expertise, know-how, industry connections and the dedication that uniquely positions and enables us to provide small business owners all across the United States, who just like you, want and need financing options that are flexible and customized around your specific needs.

In fact, our financial advisors are solution experts, not product salespeople.

We care about your business and want to see you grow, prosper and succeed.

This is why we tailor loan recommendations based only on your unique needs, goals, and budget.

Unlike others…here at SMB Compass we take the time to intimately understand your business model, which then enables us to provide you with the best-of-the-best unbiased information, as it relates to a financing solution that is just right for your business.

Even though we offer a variety of loan products, not every product will be the right fit for your company.

Remember, We’re on Your Side

That’s why we offer free consultations which gives both you and us an opportunity to discuss your financing options at length, which in turn enables you to make an educated and thoughtful decision.

In fact, you can call us today at (888) 853-8922 and schedule your very own no-obligation appointment. Our specialists will be more than willing to share their extensive expertise with you!

Benefits Associated with Short-Term Business Loans

Here are the Benefits Associated with Short-Term Business Loans

1. Easy to Qualify

It’s no secret that small business owners have a hard time qualifying for traditional loan options. Fortunately, short-term business loans have high approval ratings. Even with poor credit rating and limited business history, there’s still a very good chance that you’ll qualify for a short-term loan. Keep in mind that lenders will still check your credit scores, but the requirements and qualification standards are not as demanding.

2. Same-Day Funding

Fast funding is one of the main reasons why business owners apply for short-term loans. Since this type of loan has a faster repayment period than bank loans, lenders typically require less documentation. SMB Compass offers same-day funding, which can be remarkably useful for business expenses that need immediate funding.

3. Fast Underwriting Process

Online lenders, like SMB Compass, offer a quick and simple application process for business loans including short-term loans. You can apply for a loan online by filling up the necessary information in less than 10 minutes.

You don’t have to spend weeks preparing paperwork or schedule in-person meetings in order to access immediate funding. We know that small business owners are busy, so we make sure not to take too much of your time.

4. Seize Business Growth Opportunities

If a business growth opportunity comes knocking on your door, you won’t have to pass on the deal just because you do not have enough working capital. Short-term loans are a great way to give your company the financial push it needs so you can take on a new business opportunity.

Types of Short-Term Business Loans

Short-Term loan types

1. Merchant Cash Advance

Although it functions like one, a merchant cash advance is actually not a loan; but a cash advance against your future credit card transactions. Lenders will give you a lump sum, which you can repay by giving them a percentage of your credit or debit card sales.

2. Lines of Credit

A business line of credit is a short-term financing option that functions like a credit card. Unlike traditional loans, lenders won’t give you a lump sum. Instead, they assign you to a predetermined credit limit, which you can withdraw money from as needed. You don’t have to pay for the entire credit limit, only for the amount you’ve withdrawn plus the interest.

3. Invoice Financing

Invoice financing allows business owners to access funding by selling pending invoices to lenders. Lenders will give you 80% to 90% of the total invoice value upfront; while you’ll get the remaining balance (minus transaction fees) once your customers settle their invoices. You don’t have to put up collateral because the invoices secure the loan. This makes it easier for small business owners to qualify for invoice financing.

4. Short-Term Business Loan

As mentioned, short-term business loans are similar to traditional bank loans, except the repayment terms are shorter. However, you may find it challenging to find short-term loans from traditional lenders (banks and credit unions) because they’d rather fund larger loans. Instead, you may want to apply for short-term loans from online lenders like SMB Compass to access funding.
Ways to Utilize Short-Term Business Loans

The Best Ways to Utilize Short-Term Business Loans

1. Keep Up with Seasonal Trends

Keeping up with seasonal trends means spending more money. For instance, small businesses need extra working capital to hire more people during the holidays or to purchase new equipment to meet increasing demand. Short-term loans can help your business cover expenses to prepare for peak season.

2. Remedy Cash Flow Issues

If you’re having a slow season and you’re short on funds to keep your business afloat, applying for a short-term loan may be the solution. The funds from the loan give you a boost through slow seasons allowing you to pay for daily business expenses so you can keep your company going.

3. Emergency Expenses

Whether you like it or not, unforeseen expenses can happen. Having enough working capital to deal with these problems is crucial for an effective emergency response so your business can get back on track in no time. Whether you need to repair your trusty equipment or pay for damages, short-term loans can provide you with immediate funding to address emergency expenses.

4. Business Expansion

Substantial growth is the goal of every small business. Whether you’re looking to expand your current space or purchase additional equipment or inventory, you’ll need to shell out cash. The expenses associated with business expansion can easily hike up and chip away at any reserves you may have.

Whatever you’re planning to do, you will most likely need additional funds. Fortunately, short-term loans give you the money you need to grow and expand your business.

Criteria and Eligibility for Short-Term Business Loans

The documents you need to apply for a short-term business loan depends on several factors, such as:

Your Use of Funds

Your Personal and Business Credit Score

Your Business Operating History

Collateral Available to Secure the Loan

The Number of Years in Business

Any Trade History


To know exactly what you need in order to apply for a short-term loan, be sure to call us here at SMB Compass toll-free @ (888) 853-8922 and speak with one of our friendly financial experts.

Our team of professionals are knowledgeable about the different loan options that may be available, and they are more than willing to help you through every step of the process, from your initial inquiry to closing.

Remember… SMB Compass is here for you. Time is money and money is time.

Give us some of your time… and we’ll help you get the money you need!

Simply call us today @ (888) 853-8922.

Learn About Your Financing Options

Call Us: 888-853-8922