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Compare Short Term Business Loans

Loans for businesses of every size and industry, from top UK lenders including:

10 providers
  • Funding Options logo
    Broker

    Funding Options Short Term Loans

    • Short term business loans are a type of financing that allow businesses to borrow money for a short period of time
    • These loans can be useful for businesses that need to cover unexpected expenses or take advantage of opportunities that require quick funding
    • Minimum annual turnover
      £50,000
    • Available amounts
      £1,000 - £500,000
    • UK Available terms
      3 months - 2 years
    See Deal
  • Funding Circle logo

    Funding Circle Short Term Business Loans

    • Flexible, short-term business loans from £10,000 to £50,000 to help you manage cash flow
    • Only pay interest on the time you borrow — no fees and you can settle early at any time
    • 12 to 24 month terms — ideal for bridging gaps, boosting cash flow, buying stock and other short-term needs
    • Minimum annual turnover
      £25,000
    • Available amounts
      £10,000 - £50,000
    • UK Available terms
      12 months - 2 years
    See Deal
    • iwoca logo

      iwoca

      • Flexible finance for small businesses from £1,000 to £500,000
      • No long term commitments and flexible repayments to fit your business
      • Apply online in minutes for a quick decision (some may take up to 24 hours)
      • Minimum annual turnover
        £10,000
      • Available amounts
        £1,000 - £500,000
      • UK Available terms
        0 months - 2 years
      See Deal
    • 2 more from iwoca
  • Portman Asset Finance logo
    Broker

    Portman Finance Group

    • Loans for any business purpose, from cashflow to new equipment, vehicles or expansion
    • Term business loans, recovery loans, short-term and flexible funding, asset finance, vehicle finance
    • Dedicated account managers to guide you, understand your business and find solutions tailored to your needs
    • Minimum annual turnover
      £100,000
    • Available amounts
      £10,000 - £2,000,000
    • UK Available terms
      3 months - 6 years
    See Deal
  • Tide logo
    Broker

    Tide Business Loan

    • This product is regulated only if the business is a sole trader or partnership, and has requested to borrow less than £25,000
    • Business loans can be used by businesses to manage their cash flow, expand or purchase new assets
    • There is often no requirement for any assets to be used as security.
    • Minimum annual turnover
      £60,000
    • Available amounts
      £1,000 - £500,000
    • UK Available terms
      6 months - 6 years
    See Deal
  • 365 Business Finance logo

    365 Business Finance Merchant Cash Advance

    Credit/debit card sales required
    • Pay back via a small % of future card sales
    • No security or business plans required
    • One all-inclusive cost. No admin fees, APRs or extras
    • Minimum annual turnover
      £120,000
    • Available amounts
      £10,000 - £400,000
    • UK Available terms
      4 - 18 months
    See Deal
    • Swoop Funding logo
      Broker

      Swoop Funding

      • Simple, secure and speedy search of 1,000 funding providers without affecting your credit rating
      • Free access to every type of finance including the Recovery Loan Scheme
      • Online management allows you to find funding opportunities and track applications
      • Minimum annual turnover
        £50,000
      • Available amounts
        £5,000 - £10,000,000
      • UK Available terms
        3 months - 10 years
      See Deal
    • 4 more from Swoop Funding
  • MyCashline logo

    mycashline Unsecured Business Loan

    • Loan amounts range from £5,000 to £100,000 between 1 and 24 months
    • Get funded within 4 hours of approval
    • Minimum annual turnover
      £180,000
    • Available amounts
      £5,000 - £100,000
    • UK Available terms
      1 month - 2 years
    See Deal
    • Capify logo

      Capify

      • All credit profiles considered. Capify may be able to help when other lenders may not
      • Loans available for any business purpose
      • Funding in as little as 24 hours. No lengthy paperwork or business plans to submit
      • Minimum annual turnover
        £120,000
      • Available amounts
        £5,000 - £500,000
      • UK Available terms
        3 - 12 months
      See Deal
    • 2 more from Capify
    • Newable logo
      Broker

      Newable

      • Access to 150+ specialist lenders across the UK
      • Extensive experience when placing cases, and exclusive access to special rates and deals
      • As an alternative finance specialist, Newable can provide finance quickly, allowing you to start your project promptly
      • Minimum annual turnover
        No minimum
      • Available amounts
        £25,000 - £30,000,000
      • UK Available terms
        1 month - 6 years
      See Deal
    • 2 more from Newable

    • Suppliers that don't offer Short Term Business Loans but may offer suitable alternatives:

      • Barclays logo

        Barclays

        • Flexible borrowing for your business - unsecured (up to £100,000) and secured loans available
        • Fixed interest rates available on all loans, plus variable interest rates for loans over £25,000
        • Subject to application, financial circumstances and borrowing history. Eligibility criteria applies
        • Minimum annual turnover
          No minimum
        • Available amounts
          £1,000 - £100,000
        • UK Available terms
          12 months - 25 years
        See Deal
      • 2 more from Barclays
    • YouLend logo

      YouLend Cash Advance

      Credit/debit card sales required
      • Optimise your cash flow and make repayments in line with your sales
      • No interest rate is charged, just a one-time fixed fee
      • Minimum annual turnover
        £36,000
      • Available amounts
        £3,000 - £1,000,000
      • UK Available terms
        1 - 18 months
      See Deal
      • Funding Xchange logo
        Broker

        Funding Xchange

        • Funding Xchange can compare multiple lenders from one simple funding request
        • Get instant and personalised loan offers in just 3 minutes
        • Easily compare terms available and the search won’t affect your credit rating
        • Minimum annual turnover
          £10,000
        • Available amounts
          £1,000 - £1,000,000
        • UK Available terms
          1 month - 6 years
        See Deal
      • 5 more from Funding Xchange

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the sorting options at the top of the comparison table to order by other criteria.

Other comparisons

What is a business loan?

A business loan is a form of finance that can be used to help support and expand your organisation.

As with personal loans, you borrow a sum of money, and pay it back, with interest.

One of the most important differences between personal loans and business loans is that with a personal loan, you will be personally liable for repaying the amount you have borrowed.

With a business loan, as long as the appropriate company structure is in place, that responsibility falls to the business instead. This will not be the case, however, if you are a sole trader, or you have secured your business loan with a personal guarantee.

You can also typically borrow more through a business loan, while the interest payments on your business loan may be tax deductible unlike payments on a personal loan.

Types of business loan

Secured business loans

Secured business loans require that you put down an asset such as property as security. Secured loans often come with lower interest rates than unsecured loans as they represent less risk for the lender. They may also give you access to a larger loan amount over a longer term. However, secured loans come with the added risk that you could lose your assets if you miss the payments.

Compare secured business loans

Unsecured business loans

Unsecured business loans are a type of finance that does not require security. These types of loans tend to have higher interest rates because there is a greater risk of the lender losing money if you can't pay off what you owe. Unsecured business loans also require a good financial history and credit rating as evidence that the business will be able to repay the loan.

Compare unsecured business loans

Government loans

There may be government-backed business loans you can access. Examples include the Recovery Loan Scheme, introduced to help with the financial stresses caused by the Covid-19 pandemic, which has now been extended. What schemes are available can vary depending on government policy and changing economic circumstances across the country. So it can be useful to regularly check the Department for Business, Energy & Industrial Strategy's search tool for guidance on the business loan schemes available in your region.

Start up business loans

The Start Up Loan Scheme is a government-backed fund that currently offers personal loans of up to £25,000 to UK businesses owners that have been fully trading for less than 36 months or those looking to start a business. You can apply for free, and there are no early repayment charges. If your application is successful, you'll also get up to 12 months of free mentoring. Government Start Up Loans have a fixed annual interest rate of 6% and must be repaid over a period of one to five years.

Compare start up business loans

Small business loans

Small business loans are for start ups and small businesses to access funding. They can be used for a variety of purposes from hiring new staff to managing cash flow. As with all loans, small business loans are repaid over an agreed time period with interest. Large business loans tend to be cheaper than small business loans because there is less perceived risk with lending to a bigger company.

Compare small business loans

Short-Term Business Loans FAQs

What is a short-term business loan?

A short-term business loan is any business loan that is provided over a short amount of time – usually a period of less than a year. Short-term business loans come in several different forms, so it’s important to do some research to compare the different terms of short-term business loans to find the right one for you.

Who might want to take out a short-term business loan?

Plenty of business owners want to access cash to help them deal with cash flow problems, to help them through seasonal variations or even to make the most of an opportunity. If you are hit with an unexpected expense, such as a tax bill, for example, a short-term loan could help. Short-term business loans can provide a solution to a number of different business-related problems but whether it is the best choice for you will depend on your circumstance and ability to pay it off in the specified time frame.

How much does a short-term loan cost?

The cost of borrowing a short-term business loan varies depending on a range of factors. These include the amount you borrow, the type of loan, the term over which you are repaying the loan and, of course, the interest rate you are being charged.

What should I consider when choosing a short-term business loan?

When you are considering which short-term business loan to take, it’s important to think about the number of weeks or months over which you will need the money. Think about how quickly you can repay the loan and how much you can afford to repay each month. Also, consider what interest rate the provider is charging on the loan and how much the entire amount to be repaid will be.

I have a bad credit record, can I access a short-term loan?

Yes, many short-term loan providers offer financing solutions for businesses and business owners with bad credit. However, there may still be lending criteria that you must meet, so make sure you do your research before applying.

How much can I borrow through a short-term lender?

This will vary depending on the provider. The amounts available are often less than for longer-term loans and interest rates can be higher.

Aside from a standard loan structure, what other forms of short-term loan are there?

There are a number of short-term loan structures, such as invoice financing, which allows business owners to borrow cash against the value of their unpaid invoices. Another can be credit lines, which allow you to draw down cash as and when you need it and only pay interest on the amount you use. Cash advance loans are another form of short-term loan, which allows you to borrow cash and repay it through your card machine as you take payments from customers. Each type of short-term loan needs careful consideration before you decide to take them out and you need to think about affordability as well as whether you fulfil the provider’s lending criteria.

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