Short-Term Business Loans

Think Big with a Short-term Line of Credit

How Much Will It Cost to Make a Draw?

Select the amount you wish to borrow:


Choose your repayment term

12 months
18 months
24 months

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Weekly payment amount*:

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*This business loan calculator assumes a monthly interest rate of 5%. Your interest rate may vary based on your application information.

Apply for a credit limit up to $35,000

Get next-business-day funding after approval

Borrow any time through your online account

What Is a Short-Term Business Loan?

Short-term business loans provide the funds needed to meet immediate financial needs, whether it’s an unexpected expense, a small equipment purchase or an order to fill a gap in inventory.

Many businesses find these loans useful in dealing with seasonal business fluctuations or in covering unexpected shortfalls of cash.

A retailer expecting a surge in holiday shopping, for example, might use a short-term loan to stock up on inventory and meet consumer demand. Short-term loans can also fill in any gaps between paying off a supplier’s invoice and getting paid by a customer.

The basics of short-term business loans are pretty simple. A lender usually looks at a borrower’s credit rating and any relevant financial data such as tax returns, income and expenses. Loan amounts can range from the tens of thousands to the six figure range.

The business receives a designated amount of cash and pays it back at a set interest rate. The loan usually has to be paid back within a year or less, with payments made on a daily or weekly basis.

Although these commercial loans usually have higher interest rates than long-term loans, the short payback window offered by short-term loans means they can have a lower total cost over the duration of the loan, as long as the money is paid back on time.

Short-Term vs. Long-Term Loans

While short-term business loans might be used to pay for more immediate expenses, such as paying a vendor or small equipment purchases, long-term business loans are typically used for major capital investments.

The amount a business can borrow is more limited with a short-term loan, but the loans can be easier to obtain with faster approval process — sometimes as short as a day or so.

Short-term loans may come with higher interest rates, but if paid back on time, a shorter-term loan can have a lower total cost than a longer-term loan where the payment period extends for up to a decade or more.

On the other hand, if a short-term loan has to be refinanced and the payback period extended, the interest paid to the lender could grow much greater than the borrower originally intended. In such a case, a business might discover that a longer-term loan would have been a better option to begin with.

Amounts Length Interest Rate
Short-Term Typically smaller Usually < 1 year Typically larger
Long-Term Typically larger 1 year – 10 years Typically smaller

Business Funding from Headway Capital

Headway Capital can help you grow your business with a flexible lines of credit from $5,000 to $35,000 to fill any of your short- or long-term borrowing needs. It’s available when you want it for any legitimate business expense: anything from an unexpected equipment purchase to restocking inventory.

You set your own payment terms every time you borrow from your account, with interest payments based only on the outstanding balance.