As the name suggests, a short-term loan is money you can apply for and get quickly. Maybe your business is having money flow problems. A short-term business loan doesn’t even require a lot of collateral. But there are high-interest rates and big fees involved. Short-term lenders also lend out smaller amounts than bigger banks.
What is a short-term loan?
These are different than long-term loans in other ways. They usually need to be paid off in six months to a year. The loan term on these shorter varieties can go as long as 18 months. Keep in mind most of these lenders want you to pass a minimum credit score.