How to Use Short Term Business Loans Successfully

Last Updated on June 5, 2017

When it comes to choosing the right business funding solution, one of the most important decisions you’ll make is whether to apply for short term business loans or long term business loans.

Now, at first glance, the decision may seem hardly worthy of analysis. After all, short terms business loans need to be paid back sooner than long term business loans. But making your choice based solely on the repayment period could end up costing you more, which would put your business’s success and stability at risk.

To ensure that doesn’t happen, here are some best practices on how to use short term loans successfully:

sign covering short term business loan for business financing

Use them for Temporary Working Capital Shortfalls vs. Larger Investments

Short term business loans should be used to cover temporary working capital shortfalls, such as the need to hire seasonal staff, pay an unexpectedly high tax bill, take care of emergency facility or equipment repairs, fill a transitory gap between accounts receivables and accounts payables (i.e. if a supplier suddenly changes credit terms, etc.), or to take advantage of a potential opportunity. and so on.

Conversely, long term business loans are suited for investments that will extend at least one year in the future, such as expanding into a new marketplace, major plant or facility upgrades and renovations, establishing a new business line, acquiring an existing business, and so on.

Don’t Just Focus on Banks — Shop Around!

Once upon a time, banks were the main source of short term business loans. However, since the Great Recession they’ve scaled back the amount of lending dramatically, and ratcheted up the application process and requirements. Essentially, if you have less than flawless personal credit and haven’t been in business for at least two years, there’s virtually no chance that your loan application will be approved. Even if you do have great credit and an established business, applications can take months to snake their way through various administrators and loan officials.

Fortunately, you have options — and one of the smartest, simplest and most successful options could be partnering with National Business Capital. Whether you need a working capital loan, merchant cash advance, business line of credit, purchase order financing, or any other short term loan solution, we can help ensure that your business stays strong today, and thrives tomorrow.

Learn More About Short Term Business Loans

Contact us today for your free, no risk and no obligation consultation. If you have bad or low credit — don’t worry. We’re not especially interested in what may have transpired in the pasts. We’re far more excited about what you’re doing today, and what you have planned for your successful and profitable future!  

Apply for a short-term business loan by by clicking the link below, and receive funds in as little as 24 hours!

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.