Short Term Loan

A short term loan is typically a loan that is repaid within a year. Some popular short term loans include payday loans and flexible loans. These loans are different than regular bank loans, which are taken out over an extended amount of time. It is also important to note that long term loans are credit-based while short term loans don’t have to be.

Businesses can take out a short term loan to finance a variety of business expenses — from inventory and equipment to working capital. In most cases, businesses take out a short term loan when they do not qualify for a line of credit or a long term loan from a bank.

Types of Short Term Loans

There are several types of short term business loans, including:

  1. Payday Loans. These are small loans that are usually no more than $2,000 and can often be given within 48 hours.
  2. Credit Cards. These are short loans where you must pay back all or part of the loan each month. They are credit-based and the amount given to you can vary between credit card companies. 
  3. Bridge Loans. These are loans taken out for a period between two weeks and three years. They are usually more expensive that general financing and are commonly used in venture capital and corporate finances.

Claris Finance Can Help You Find the Right Loan

At Claris Finance we help business owners, entrepreneurs, and executives find financing that matches their company’s needs. We have a number of lending partners that we work with that can help fill almost any business need, including short term business loans, working capital loans, and inventory loans.

Contact Claris today to get started! 

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Sources: 
https://www.entrepreneur.com/encyclopedia/short-term-loans
https://www.entrepreneur.com/encyclopedia/bank-loans
http://www.onmoneymaking.com/difference-between-short-term-and-long-term-loans.html
https://www.boundless.com/business/textbooks/boundless-business-textbook/financial-management-19/short-term-financing-117/short-term-loans-549-10191/

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