Short-Term Business Loans

Short-Term Business Loans for UK Businesses

When your business needs quick access to working capital, short-term business loans can provide the financial flexibility to cover immediate expenses, fund growth opportunities, or bridge seasonal cash flow gaps.

We can arrange short-term business loans through a variety of finance products. Whether it is an unsecured business loan, a revolving credit facility, or a secured business loan, we can provide the finance for your short-term needs. With a short-term business loan, you are able to receive funding between £10,000 to £250,000, over a period of 3 to 24 months. 

At MAF Finance Group, we support UK businesses by arranging tailored short-term finance solutions designed to meet their specific needs. Whether you’re looking to manage cash flow, purchase stock, or take advantage of a new opportunity, we can help you find a facility that works for your business.

What is a short-term business loan?

A short-term business loan provides quick access to funding, typically repaid over a few months to a couple of years. These facilities are ideal for businesses that require fast finance without committing to long-term borrowing. Borrowing amounts for short-term business loans range from £10,000 to £250,000.

Short-term finance can be used for a wide range of purposes, including managing seasonal fluctuations, covering operational expenses, supporting growth projects, and dealing with unexpected costs. Because repayments are structured over a shorter timeframe, businesses often benefit from greater flexibility.

This type of funding can help maintain smooth operations, improve cash flow, and give you the agility to act on new opportunities, ensuring your business can stay competitive.

Do I qualify for a short-term business loan?

In order to qualify for a short-term business loan, your business must meet the following requirements

• Location: UK-based businesses only
• Age: Your businesses must have been trading for a minimum of 6 months to qualify
• Business type: Limited company, LLP or PLC
• Turnover: Must turnover a minimum of £10,000 per month

What are my short-term business loan options?

Short-term business loans come in multiple different formats, whether that be with an unsecured business loan, a secured business loan, or a revolving credit facility. Each funding solution can be tailored to your specific requirements, with loan amounts ranging from £10,000 to £250,000, and a repayment length suited to your needs.

With a short-term business loan, we can arrange a finance solution over a period of 3 months through to 24 months. This ensures you can receive a short-term loan that is specific to your requirements and can support your business operations. 

What finance options are available with a short-term business loan?

Unsecured business loans: This loan product is granted off the borrower's creditworthiness instead of being secured to a business asset, such as a property. This solution is suitable for businesses who are not looking to use business assets as collateral, or who do not own tangible assets to use as security. Unsecured loans can be paid off early with no early repayment fees, and can be tailored to each business’ individual requirements, providing flexibility to the borrower’s needs.

Revolving credit facility: This funding facility enables businesses to draw down funds from a line of credit, to then be paid back over a specific timeframe. Agreements for revolving credit facilities typically last up to 12 months, with the use of the funding usually for supporting cash flow, paying day-to-day business expenses, or resolving unexpected costs. Once the borrowed amount has been paid off, businesses can then draw down further funding from the facility.

Secured business loans: This loan type uses a business asset, such as a property, as collateral to secure the loan. The property will first be evaluated to see if it is fit for purpose, then valued to determine the loan amount available. Typically, up to 75% of the property’s value can be raised for the loan. As a secured business loan is usually seen as lower risk from the funder’s perspective, businesses can potentially have access to longer repayment terms and a higher loan amount.

Benefits of a short-term business loan

• Flexible funding solutions
• Cash flow management
• Quick access to funding
• Tailored to specific requirements
• Cover unexpected costs
• Unsecured options have no early repayment fees
• Can be used for a wide range of needs
• Top up options available

Key features of a short-term business loan

Repayment period: Loans are available between 3 months and 24 months.

Speed of finance: Quick application and approval process, often approved within 24-72 hours.

Purpose: Account for seasonal demand changes, supporting day-to-day business expenses, funding new growth initiatives, and boosting cash flow. 

Collateral: Depends on the funding solution selected. Secured business loan require an asset, such as a property, to be used as collateral against the loan. However, and unsecured business loan uses the business' creditworthiness to determine approval, so no collateral is required here. 

Interest rates: Depends on multiple factors, including amount financed, finance facility selected, and the repayment term. 

How long does it take to secure a short-term business loan?

The length of time it takes to secure a short-term business loan varies depending on the documents that are needed as well as your existing finance agreements. Once all the relevant documents have been sent over, approvals can be completed within 24-72 hours.

To ensure this is completed efficiently, ensure you have your current financial accounts, last 6 months bank statements, your business plan, and how you intend to use the funding. We will manage the finance process throughout, ensuring you can continue with your core business activities.

Applying for a short-term business loan

MAF Finance Group can compare offerings from a wide selection of banks and funders to ensure you receive the option best suited to your business.

To receive further information, simply fill out the form below. To speak directly to us, call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].