Short-term business loans are what you reach for when the window closes in a week and the cheap options all take a month. You give up some rate and accept a faster payment schedule. In exchange you get approved in hours and funded in one to three days. The trade is obvious and sometimes it is exactly the right one.
Short-term loans price higher than longer products for a reason. The lender is absorbing less time risk, pulling money back on a daily or weekly ACH, and lending against bank statements instead of tax returns. That structure lets them approve credit scores down into the 550s and accept six months of operating history where a bank would want two years. It also lets them move in hours.
The right use case for a short-term loan is a specific, time-boxed opportunity where you can already see how the money comes back. A distributor discount that expires Friday. A piece of equipment that broke and is costing you revenue every day it sits. A seasonal inventory position ahead of a buying window you already know clears. What these deals have in common is a payback horizon your underwriter can draw on a napkin. If the use case is open-ended or the payoff is twelve months away, you want a different product, and your underwriter will say so on the first call instead of fronting you an expensive loan that does not fit.
Eligibility what we typically look for
6+ months in business
$8K+ monthly revenue
Personal credit score of 550+
Business bank statements (most recent three months)
Why founders pick this
Key benefits
Funded in 24 to 72 hours once the file is clean
Documentation lighter than a term loan — bank statements drive the decision
Credit scores in the 550s can still qualify on strong revenue
Daily or weekly ACH repayment matches your cash cycle instead of fighting it
Rates start at 10 percent and go up from there. On an all-in basis they cost more than a term loan or a line of credit — that is the price you pay for speed and looser credit criteria. Your underwriter runs the actual cost of capital against the upside of the deal before you commit. If the math does not support the loan, they say so.
Daily or weekly ACH pulls from your business bank account, sized so your cash flow can absorb them. The lender wants small, frequent payments so the exposure comes down quickly rather than waiting for one big check at month-end.
Often yes, and it is a common exit for our clients. A short-term loan gets you through the immediate need. Once you have four to six months of clean payment history on the new facility, your underwriter revisits the file to see whether a line of credit, an SBA loan, or a term product can refinance the short-term balance at a lower cost.