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What is a short-term business loan?

Every business at some point of time requires financial aid to smoothly run their business and maintain the cash flow. In such scenarios, short-term business loans are very effective. A short-term business loan generally has to be paid off in a short duration through daily/weekly repayments. However, the duration varies as per the terms of the company or the lender. In most cases, the loan duration is either a year or even less depending upon overall risk profile of the business.

How can a short-term business loan help your business?

For a business, it is important to maintain cash flow, demand-supply chain, and pay off all the expenses on time. While there can be many circumstances where the business may require urgent funds for a short duration of time. In such cases, short-term business loans can help in maintaining the smooth functioning of the business.

Our loan guide

Short Term Business Loans

Loan amount

$5k- $20m

Interest rates from

Starts from 7.99% p.a.

Loan term

3 months – 24 months

Pre-approval time

2-4 hours

Unconditional approval & settlement time

Unsecured: 24-48 hours | Secured: 3-7 days

Repayments

Daily / Weekly / Fortnightly / Monthly

Security

Both Unsecured and Secured Options

What you need to know

Can be used for

Buying stock/Inventory

Paying wages/rent

Expansion into branches or another unit

Renovating business premises

Other short-term working capital needs

Documents required (low doc approval)

Up to $250,000 basis

Last 6 months bank statements

ATO statements

Valid identification proof

Documents required (full doc approval)

Quick funding process

Least documentation

*The information provided in

critical information sheet

is intended as a guide only. Please contact us for more information.

What you should know about Short Term Business Loans

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The Pros and Cons of Short-term Business Loans

Pros

Timely repayment of the loan helps in building your credit score

Generally, short term business loans can get approved basis low doc within 24-28 hours

It works as a quick fix for urgent funding needs.

Cons

The interest rates on these loans can ben higher given the nature and duration of the loan

Generally short-term business loans have daily/weekly repayments which could be material for a small business given the short duration.

Things to keep in mind while applying for a short-term business loan

There are many things that a business owner should keep in mind while applying for a short-term business loan. Here are some of the things that can help in avoiding problems while applying for business loans.

Before applying for a loan, it is necessary to know the purpose or use of the money. The reason why knowing the purpose is important is because there should be a plan on how the money will be used and how the business will settle the amount within the decided time frame.

It is very essential for a business to consider the total amount repayable, as the interest rates are higher in short-term business loans as compared to normal or regular loans. While looking for the use of a loan, it is also important to consider the repayment.

Short-term business loans are available for all businesses with low credit scores, but the low score can impact the loan in many ways. While applying for the loan it is important to check the details before so that you as a business owner can plan beforehand.

A low credit score can affect the interest rate at which the business will get a loan. Knowing the credit score before will help in understanding the estimate of the rates and other terms of the loan.

Once you will understand the need and urgency of the loan, you should look for lenders available. Instead of going for the first lender, take your time and research for the required factors as you might need flexibility which every lender might not offer. Besides, check the requirements that the lender asks for.

As a business owner you may get multiple options, but from all the options it is important to choose the right one. In order to do that, you need to check all the offerings along with the interest rates that are offered. After considering each aspect you can easily decide which lender is ideal for your short-term business loan.

Situations where a Short-Term Business Loan can help

Urgent Finding Requirement

For any business, it is important to maintain adequate cashflow for the smooth functioning of the business. While there are times when the business may require urgent funding to fulfill some order or pay wages. In such cases, the business can simply apply for a short-term business loan and get funding within the same day.

Seasonal Requirement

There are many retail businesses which witness seasonal fluctuations (e.g., clothing retail during Christmas). During this period, it is important for the business to maintain adequate stock to meet the high demand. During this period, a short-term business loan can come really handy.

Bridging Finance

There are many retail businesses which witness seasonal fluctuations (e.g., clothing retail during Christmas). During this period, it is important for the business to maintain adequate stock to meet the high demand. During this period, a short-term business loan can come really handy.

Past Bad Credit History

Generally, lenders hesitate to fund your business if you have had a bad credit history in the past. However, there are lenders who are happy to give a second chance by starting with a short-term business loan for 3-6 months. Timely repayment also helps in building your credit score.

Recent Case Studies

Short Term Business Loans

case-study1 case-study2

Case study 1

Grocery Retail Store

Business Overview

Industry

Retail

Trading time

3 years

Cash flow

Daily Eftpos

Credit history

Good

In this case, the business is a retail grocery shop where in it generates daily EFTPOS income. There would be hardly any debtors in the business. The trading time is 3 years and there is no past credit irregularity.

Lender analysis

Low risk

Consider higher loan

Good interest rate

Thus, this business presents lower risk to the lenders considering daily income credit, established business with good credit history and hence, the lenders would consider a higher unsecured business loan exposure with a competitive rate of interest on this business.

Case study 2

Property Development

Business Overview

Industry

Construction Trading

Trading time

5 years

Cash flow

Invoicing

Credit history

Past Settled Default

In the above case, the business is into construction. The business would have limited 3-5 invoices per month and gets paid through invoices raised which generally takes 30-60 days. There is also a settled default in past.

Lender analysis

High risk

Conservative loan

Higher interest rate

So, despite trading for 5 years, the above business presents a higher risk considering infrequent revenue, long credit days, past credit default and greater industry risk considering frequent delays in work completion. Hence, the lenders would be conservative in lending and generally would charge a higher rate of interest.

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Aktaruzzaman Rasel

Aktaruzzaman Rasel

Thank you Neeraj Indraghanti and his team. Really apricated you help to getting the loan when we needed. We had an amazing experience with this company. We are so pleased with the service received from Neeraj. He went above and beyond to help us get out of the situation. The loan process was easy and hassle free. Looking forward to use your service in future too.
Tabitha Pomente

Tabitha Pomente

Working with Saroj and the Bronc Finance team has been an incredible experience. Their professionalism, knowledge, and support throughout the process have been outstanding. I couldn’t be happier with the service and results — highly recommended!
Don Hett

Don Hett

⭐️⭐️⭐️⭐️⭐️ Highly Recommend Saroj from Broc Finance! Saroj was incredibly helpful from start to finish. He listened to all my requirements, understood my situation, and got me the funding I needed super fast. I really appreciate how efficient and responsive he was throughout the whole process. If you’re looking for someone who actually cares and gets the job done without delays, Saroj is your guy. I highly recommend him for anyone needing funding support. A big thanks to Saroj and the team at Broc Finance for their great work. Wishing you all the best!
Mugdha Chandekar

Mugdha Chandekar

A Trusted Partner in Commercial Finance I had the pleasure to discuss with Broc Finance on a complex commercial mortgage transaction, and I can confidently say they are the experts and professinals in this space. If you're looking for a commercial mortgage broker who brings clarity, integrity, and genuine commitment to the table, Broc Finance is the one to call. Highly recommended for any business owner seeking tailored financial solutions.
Yogendra Jayadeva

Yogendra Jayadeva

Partnering with Broc Finance (and Saroj) has been a fantastic experience—seamless support, quick turnaround, and successful outcomes for even the trickiest business loan scenarios. Highly recommend them for reliable and efficient Business lending solutions!
Deepesh Parikh

Deepesh Parikh

Saroj knows his business. To the point guidance, everything from start to finish was as expected and confirmed by him. Always recommend him for sorting it your personal or business finances. Thanks a lot for all your help Saroj.
Daniel Butel

Daniel Butel

Saroj and the team are great, they are open and transparent with advice. Truly are advocates for your business and help to cut through the finance jargon that’s hard for business owners and operators to decipher
Zoltan Matrof

Zoltan Matrof

I wanted to express my sincere gratitude for your outstanding support in helping me secure finance. Your professionalism, clear communication, and dedication made the entire process smooth and stress-free. I truly appreciate your expertise and commitment—thank you for going above and beyond to assist me! World Gym Busselton

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