Short Term Small Business Loans vs Long Term Business Loans: Which is Right for You?

Last Updated on September 23, 2015

Short term business loans are the right choice for companies that need to bridge a gap or take advantage of an opportunity.

Having access to short term small business loan can be a true lifeline when an opportunity sudden arises that will advance the business sooner than expected or when a major piece of equipment breaks down which could be potentially devastating in lost revenue if not immediately addressed.

Perhaps your business has landed that big order for which you do not yet have the inventory or the means to fulfill. Short term loans are the best financial vehicle when a one-time event presents itself.

short vs. long term business loans

Summary of Short Term Small Business Loan Scenarios:

  • Accounts Receivables vs. Payables. When there’s a lag between cash coming in and the need for cash to be paid out, a short term loan will help bridge that gap.
  • Short Term Operational Costs: These run the gamut between hiring seasonal help, or the need for a one-time lease of heavy equipment. Short term business loans are the answer.
  • Cash Flow Issues: You know the money is due and expected to come in soon. However you need it now to operate your business as smoothly as possible. Short term business loans are designed to get you over the hump and allow you to run your business as usual.
  • Emergency Replacement or Repairs: Reality happens. Should equipment critical to your business’ productivity require repairs or replacement, diverting funds from other necessary expenditures may not be a wise decision. Avoid negatively impacting your credit history by seeking a short term small business loan to tide your business over and make necessary adjustments.

Many times when small businesses require funding their banks take weeks or even months to deposit the funds these businesses needed today.

Avoid the bottleneck by contacting National Business Capital. We have an over 90% loan approval rate and the money is yours within days. Call us today to discuss your small business financing solution at (888) 888-9124.

National Business Capital 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 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.