Once our loan brokers have found the right finance for you and your lender approves your loan, they place the funds in your account. After that, you pay interest on your loan, usually worked out yearly. You pay interest at each repayment instalment until you’ve cleared your loan (usually within 3 – 24 months). Sometimes, you can pay off your loan early without fees, or add extra borrowing if you need. If you can pay off your loan early, some lenders allow you to do so without penalty. Others will charge you fees for early repayment, but it might still be worth it as you avoid interest on the overall term.

Make sure you know the pros and cons of getting a short-term business loan before you apply. This type of financing offers unique features that lenders make for certain situations. If you’re not sure if short-term finance is right for you, contact LoanTube today and discuss your business situation and your needs. Our team of credit experts will be more than happy to suggest a few options.

Pros

• Easy to apply for : Our lenders know that your needs can change fast. Sometimes, you need extra finance quickly without the hassle of a long, drawn-out application. Short-term finance is often easy to apply for, leaving you free to focus on your business.
• Get your finance fast : When you need cash fast, a short-term loan can land in your bank account in just 24 hours or even the same day! This leaves you free to focus on business growth, not loan applications.
• Flexible repayments : If you take out a traditional business loan, you might plan repayments for up to 5 years. If you settle everything early, you sometimes have to pay fees for early settlement. Often, a short-term loan gives you the option to pay off the balance early with no extra charges.

Cons

• Borrow smaller amounts : When you get a short-term loan, the amount you can borrow will likely be capped at a lower amount than with other types of loans. This may mean you don’t have enough money and need to apply for another loan if you need more money.
• Higher repayments : Because lenders giving short-term loans face more risk of borrowers defaulting, your repayment interest is usually higher than longer-term finance. That means you pay more to borrow the money than you would if you took out long-term credit. This can be balanced out by the shorter time you borrow, meaning you may pay less interest overall.
• Less time to repay : How long you can take to pay back your loan varies by lender. Often, you’ll need to repay everything you borrow within 3-24 months, so make sure you can afford to make the repayments or you could suffer penalties and fees.

Lenders offer short-term finance for Limited Companies, Sole Traders and other businesses needing to borrow money for short periods.

A short-term business loan could be right for you if:

• You need to borrow a smaller amount
• You can afford the repayments
• Repaying within 3-24 months is not going to stretch your finances

A short-term business loan might not be right for you if:

• You need to borrow a large amount
• You need between 2 and 5 years to repay your loan
• You want a low-interest loan

Applying through LoanTube is easy. Our credit experts know the business finance market and what our lenders need from you. That means fast access to the right lenders. Therefore, you’re more likely to get the finance you need the first time. Also, you face less risk of wasting time making direct applications with lenders that could be refused.

Most of our lenders like to see:

• A background or credit check : Lenders often need to run a credit search before they can lend you money. Usually, this is almost instant, so it won’t slow down your application.
• Recent trading history : The longer your business has been going, the more lenders will have loans for you and the better the rates are likely to be. Trading for 18 months or more is ideal, but don’t worry if you have a newer business. There are likely still lenders there for you.
• A business health check : Lenders may need to see an overview of your business’s performance. This is to ensure that the repayments are affordable for you and to reassure your lender that you can repay their credit.

Save time and hassle when you use LoanTube to search the market and find the best loans for your needs. We work closely with many lenders, so we know just who we should go to for your loan. What’s more, it’s easy to apply through LoanTube and find the best loans the UK credit market offers.

• Complete your enquiry with no impact on your credit profile
• Speak to one of our expert human credit experts if you need help
• Let us search the market for the best lender and loan for you
• We explain what we believe is the best option for your needs
• Provide us the required documents, and complete your application
• Get the money in your bank account fast