Get a Short Term Loan Today!
A short-term loan is a type of loan that is obtained to support a temporary business capital need. As it is a type of credit, it involves repaying the principal amount with interest by a given due date, which is usually within a year of getting the loan.
LOAN AMOUNT:
$2,500 – 250k
TERM:
3 to 18 Months
TIME TO FUNDING:
As few as 48 Hours
INTEREST RATE:
14% and up
About Short Term Loans
Short term financing is an essential option for small businesses. Buying inventory, covering working capital expenses while awaiting payment of invoices, and expanding operations are just some of the uses small businesses have for short term loans.
Calculator Information
The Finance Calculator calculates the type of repayment required, at the frequency requested, in respect of the loan parameters entered, namely amount, term and interest rate. The Product selected determines the default interest rate for personal loan product. The Finance Calculator also calculates the time saved to pay off the loan and the amount of interest saved based on an additional input from the customer. This is if repayments are increased by the entered amount of extra contribution per repayment period. This feature is only enabled for the products that support an extra repayment. The calculations are done at the repayment frequency entered, in respect of the original loan parameters entered, namely amount, annual interest rate and term in years.Calculator Assumptions
Length of Month
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days interest dependent on the number of days in the particular month.Number of Weeks or Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.Rounding of Amount of Each Repayment
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after the increase in repayment amount.Rounding of Time Saved
The time saved is presented as a number of years and months, fortnights or weeks, based on the repayment frequency selected. It assumes the potential partial last repayment when calculating the savings.Amount of Interest Saved
This amount can only be approximated from the amount of time saved and based on the original loan details.Calculator Disclaimer
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.Business Loan Calculator - Estimate Your Monthly Payments with Cashifi
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
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- Covering small business costs while awaiting payment of accounts receivable
- A Christmas oriented business buying stock in advance of the holidays, with the loan to be paid off after the Christmas season
- Purchase of equipment that will pay for itself in less than two years
If you’re ready to start but still don’t know who to work with, turn to Cashifi!
We utilize our expansive network of vendors and a relationship-driven approach to get your business the funding it needs when you need it.
Frequently Asked Questions
It is possible to get a short term loan for a startup or small business, however be prepared for more stringent qualification requirements. In addition to the documentation already noted above, you may also need to provide projected cash flow statements and projected financial statements for the next 3 to 5 years. In addition, you’ll need to clearly lay out in your financial projections how you plan to repay the loan. Even with all that, if your business is a startup it’s most likely that you’ll only qualify for a secured loan, so you’ll need some personal assets such as real estate.
Short term loan interest rates are economy-dependant. In a normal or boom economy, interest rates on short term loans will be higher than long term loans, however, in a recession, short term loan rates may be lower than those for their long term cousins.
The interest and repayment requirements of short term loan rates can be calculated in different ways and obviously you’ll want the calculation that is most in your favor. Our experts at Big Think can assist you with finding a lender who will provide your business with the most favorable terms.
- Minimum Credit Score: 500
- Minimum Time in Operation: 6 months
- Minimum Revenue: $100,000 annually
Benefits:
- Lukewarm credit OK
- Limited paperwork
- Quick access to cash
- Can be used for a wide variety of purposes
Drawbacks:
- Relatively high Annual Percentage Rate (APR)
- Capped loan amount
- Daily payments
Short term financing is an essential option for small businesses. Buying inventory, covering working capital expenses while awaiting payment of invoices, and expanding operations are just some of the uses small businesses have for short term loans.While the overall structure of short term loans is similar to their more common relative, long term loans, there are some important differences.
As with long term loans, your business will need to qualify with the lender. In addition to your credit score, the lender may also want to see records of previous loan repayments, payment histories to your suppliers and your company’s cash flow history, preferably for the past 3 to 5 years. An income statement may also be required. Depending upon these factors, and the lender you’re dealing with, your loan may be secured against collateral or unsecured, also known as a ‘signature loan’.
Payment schedules also differ. Where traditional long term loans usually require monthly payments, short term loans may have payment schedules as frequent as every business day.
