Trusted financial services provider in the UK
Contact us
Business Finance

Flexible & short-term business loans

Short-term funding can help businesses manage temporary cash flow pressures, unexpected costs or time-sensitive opportunities.

Finance at a glance

Key details to help you understand this finance option at a glance.

Purpose

Short-term cash flow, urgent expenditure and temporary funding requirements

Finance amount

Subject to affordability, business circumstances and lender criteria

Finance term

Generally shorter repayment periods than conventional business loans

Suitable for

Businesses with a defined short-term funding requirement and repayment strategy
Key note
Short-term borrowing can carry a higher overall cost than some longer-term finance options.

What is a short-term business loan?

A short-term business loan provides funding that is normally repaid over a shorter period than a traditional longer-term business loan. It may help a business bridge a temporary cash flow gap, meet an unexpected expense or act on a commercial opportunity where funds are required promptly. The business should consider both the repayment schedule and total cost of borrowing when assessing whether short-term finance is appropriate.

How does short-term business finance work?

The facility is structured around a defined funding need and a relatively short repayment period.
01

Identify the cash requirement

Determine the amount required and the reason for short-term funding.
02

Assess repayment capacity

Review anticipated cash flow and how the facility will be repaid.
03

Explore available options

Consider suitable short-term facilities from available lenders.
04

Complete the facility

Subject to approval, funds can be made available under the agreed repayment structure.

What can short-term business finance be used for?

Short-term finance is typically used for temporary rather than permanent funding requirements.

Cash flow gaps

Cover timing differences between outgoing costs and incoming revenue.

Unexpected expenses

Meet urgent business expenditure that was not originally budgeted.

Stock purchases

Acquire stock ahead of seasonal or confirmed demand.

Time-sensitive opportunities

Provide funding where a commercial opportunity requires quicker access to capital.

Benefits of short-term business loans

Used appropriately, short-term funding can provide flexibility when a business faces a temporary capital requirement.

Temporary funding

Avoid committing to a longer facility where the requirement itself is short term.

Cash flow support

Bridge temporary gaps in business income and expenditure.

Commercial flexibility

Respond to unexpected costs or opportunities.

Defined repayment period

The business knows the agreed timeframe over which the facility should be repaid.

When might short-term finance be suitable?

Short-term funding may be appropriate where the requirement is temporary and the business has a credible repayment plan.

Seasonal businesses

Businesses managing predictable periods of higher expenditure or lower income.

Businesses awaiting receipts

Companies experiencing timing gaps before expected customer payments.

Businesses facing urgent costs

Companies that need capital for an unforeseen but necessary business expense.

The Somerset process

A straightforward, supportive process from initial discussion to completion.

01

Understand

We take time to understand your business, your goals and your finance requirements.

02

Explore

We assess your requirements and explore suitable finance options from available lenders.

03

Apply

We support you through the application process and liaise with the lender as required.

04

Complete

Once the finance is approved and completed, you can move forward with your business plans.

Why Somerset Financial?

Straightforward support to help you explore suitable business finance options for your circumstances.

Finance options explored

We help you explore finance options based on your business requirements and circumstances.

A personal approach

We take time to understand your business, objectives and funding requirements before exploring suitable options.

Tailored to your business

Finance requirements vary from business to business, so we focus on options relevant to your individual circumstances.

Clear guidance

We explain the available options and process clearly, helping you make an informed decision.

Support through the process

We support you through the application process and liaise with the finance provider where required.

Focused on your objectives

Whether you are investing, replacing equipment or managing cash flow, we focus on finance options aligned with your business objectives.

Short-term business loan FAQs

Key considerations when looking at short-term business funding.

Related business finance options

Explore other finance options that may also be relevant to your business requirements.

Ready to discuss your business finance requirements?

Speak with Somerset Financial about your requirements and explore finance options that may be suitable for your business.

Make an enquiry