A short-term business loan, otherwise known as a short-term commercial loan, provides businesses an opportunity to obtain needed capital, for any reason quickly, usually within 48 hours.
This type of loan is considered the “Swiss Army Knife” of loans because of its usefulness and flexibility. Instead of pulling cash from other areas of a business’s revenue, tapping into personal savings or home equity, businesses can leverage short-term loans to cover expenses while maintaining daily accounts payable.
Short-term business financing can come in several forms, such as an installment loan, a line of credit, revenue based financing like a cash advance, or an invoice factoring. The typical structure is laid out below.
