Short Term Business Loans

After some short term funding for your business? Mozo compares some of the latest short term business loan deals to help find the right loan for you.

Page last updated September 23, 2019

Short term business loan comparisons on Mozo - rates updated dailyMozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.

Showing 12 results

  • Business Loan

    Say goodbye to lengthy applications with online lender Moula. With a speedy 10 minute application process and potential funding within 24 hours, Moula can help you meet your businesses inventory or cash flow needs without the fuss.

    from 0.61% per fortnight

    $0.00

    24 Hours

    Details
  • Selective Invoice Finance

    A line of credit allowing you to access up to 95% of the value of your accounts receivable within 24hrs, with remaining 5% available when the invoice is paid. No need to worry about weekly repayments or property security.

    from 1.25% per fortnight

    $500

    24 Hours

    Details
  • Flexible Business Loan

    Quick and easy to access funds up to $500,000 for any business purpose. Fast approvals save you time so you can get back to what you do best: running your business. For a limited time only: Mozo customers do not pay upfront establishment fees on approved and funded loans.

    On Application

    $0.00

    within 24 hours

    Details
  • Flexible Business Loan

    Stop delaying and take your business to the next level with a loan from businessloans.com.au. If a simple online application process, quick approval and funding from $5k-$500k sounds right, then businessloans.com.au might be the right match for you.

    On Application

    2.00%

    within 24 hours

    Details
  • Unsecured Business Loan

    A straight forward business loan with no hidden fees or charges. Achieve business goals through having fast, easy access to finance to give your business the boost it needs.

    from 16%

    $0.00

    Within same day

    Details
  • Business Loan

    Business loans available from $5K to $300K and funding possible in 24 hours. Whether it’s a renovation, a marketing campaign or cash to tide you over, let Prospa help you keep your business moving – Rates from 9.9% p.a.* and no assets required to access up to $100K.

    On application

    0.05% to 1%

    from 24 hours

    Details
  • Unsecured Small Business Loan

    Apply for a business loan with Capify and get funded for loans between $5k - $300k within 24 hours for any business purpose. If you're successfully funded, you will receive an e-gift voucher for up to $500 (T&C's apply. Must quote Mozo Offer on application).

    On Application

    $0.00

    24 hours

    Details
  • Business Loan

    Fast, flexible business loans from $10,000 to $200,000. Great for businesses which have been trading for more than 6 months with a monthly turnover above $10,000.

    On Application

    $0.00

    48 Hours

    Details
  • Unsecured Business Loan

    Apply for $5,000 to $500,000 online in minutes. No security required. You’ll enjoy a single transparent fee with no ongoing interest or monthly charges. Stay in control of cash flow with a bespoke variable repayment based on the business’s turnover.

    from 1.00% per fortnight

    $0.00

    from 24 hours

    Details
  • Merchant Cash Advance

    Capify Merchant Cash Advance is an alternative solution to traditional business loans that enables you to have flexible daily repayments based on your credit card and EFTPOS transactions, ensuring your repayments match your cash flow. Access up to $300k now!

    On Application

    $0.00

    48 hours

    Details
  • Business Vehicle & Equipment Finance

    Apply online for business vehicle and equipment loans up to $150,000 with competitive fixed rates starting from 5.49% p.a. Lending criteria and T&Cs apply.

    5.49% p.a. fixed

    $500

    Varies

    Details

Want more? Compare all 53 bank business loans in the Mozo comparison engine.

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Business Banking Resources

Reviews, news, tips and guides to help find the best business loan for you.

Finding the best short term business loan

If you’re looking for a short term business loan, chances are you need the funds fast. So we’ve not wasted any time and have answered some questions you might have before you start comparing short term business loans.

Why would I consider a short term business loan?

While everyone will have a different reason for applying for a short term business loan, some of the most common reasons include:

  • An unexpected cost upsurge
  • Covering unexpected operation costs
  • Seasonal cash-flow holes
  • Emergency repair
  • Awaiting a client to pay an invoice

How much am I able to borrow with a short term business loan?

Some lenders will allow you to borrow up to $250,000, however, this will depend on your borrowing capacity. This is where you lender will determine whether you satisfy the lending criteria, which will be based on things like your current cash flow and credit listings.

Is there a difference between short term loans and regular business loans?

Unlike a regular business loan that will ask for monthly repayments, if you apply for a short term business loan, you may be asked to make daily repayments. A short term business loan also has shorter terms, like 3-12 months, while a regular business loan has terms of up to 5 years.

What are the pros and cons of using a short term business loan?

It’s important that you weigh up the pros and cons of short-term business loans before making a decision. One of the pros about using a short term business loan is the quick approval and access to funding, so you may have the funds in your account within one business day. And since you’ll be approved quickly, you’ll also be able to take advantage of any business opportunity, or to fill a gap in your accounts receivable or put it towards urgent costs.

On the other hand, short term business loans generally come with higher interest rates and fees. This is usually to cover the cost of loss of long-term interest, since you will be making your repayments on a daily or weekly basis - which is another to keep in mind before you apply.

What types of short term business loans are available?

Like a personal loans, short term business loans are available as secured or unsecured. However, there is also the option to take out a commercial loan. All three loans have pros and cons, which you will need to weigh up before you decide on the one that’s right for you.

Secured short term business loans - A secured loan will ask for an asset to be used as security, like your home or car and in return you will receive a lower interest rate. Just keep in mind that if you default on the loan, your lender has the right to repossess your asset.

Unsecured business loans - Unsecured business loans won’t ask for any security, but they do generally come with higher interest rates.

Commercial loans - A commercial loan is your third finance option, which usually comes in the form of an overdraft or a line of credit. A line of credit is an established agreement between you and your lender that gives you access to a predetermined amount of credit whenever you needs. These types of loans often come with high monthly fees and rates.

What kind of interest rates can I get for a short term business loan?

The type of short term business loan rates available are fixed or variable. And even though you may be in a rush to get some much-needed cash, you’ll need to compare the benefits and drawbacks of both before making your decision.

Fixed interest rates - A fixed rate means your repayment amount will never change because you’ll be locking in your rate for the whole loan term. However, these kind of rates do tend to be on the steep side.

Variable interest rates - A variable rate does the opposite and will change according to the market. These types of loans also come with other repayment features, like an extra repayments and redraw facility. Just remember, if rates rise, so will your repayments.

Is there anything else I should compare in a short term business loan?

Yes, once you start shopping around on short term business loans, you’ll find that many loans come with additional features, like flexible repayment options. It’s worth comparing these as it could help you save on interest in the long run.

Repayment features

Depending on the type of loan you choose, you may have an extra repayments option - this allows you to make extra repayments to your loan. Not only will this help you save on interest, you’ll be paying your loan off faster. However, some lenders may charge a fee to do this and can set a limit on how much extra you can repay.

Another feature your loan may come with is the redraw facility. With a redraw facility, you’ll be able to withdraw any of your extra repayments, which you can put towards an unexpected bill or other unforeseeable cost.

Loan fees

Just like any other loan, you will have to pay a few fees. Some of the most common fees you might be charged include:

Establishment fees - Also known as an application or upfront fee, establishment fees are one-off payment you are charged at the start of your loan. It covers the cost of setting up your loan file with the lender.

Service fees - These are also known as ongoing fees and are charged on either a monthly or annual basis. This is a charge you pay to keep your loan going.

Is there anything else I should be aware of before I start my application?

Whether your business is large or small, you’ll still need to consider a few factors that your lender will take into consideration before you submit your application, like:
Business eligibility - Some lenders will have different eligibility requirements, like having been in business for a minimum of 12 months.

Turnaround time - Depending on your financial situation, you may need access the funds quickly, so you’ll need to make sure your lender will be able to do this within your requested time frame.

Is there anything that would cause my application to be rejected?

Before you submit your application, it’s important you’re aware of the common mistakes that could have your application rejected. This could include:

Frequent changes to your business structure - Lenders will ask to see your current business structure, so if your business has undergone multiple reconstructions you could have your application rejected.

No loan purpose - Once you submit your application, you will be asked the specify the purpose of the loan. If you don’t have a plan of what you intend to use the loan for, your lender may see this as a red flag.

Borrowing too much - As your lender determines your borrowing capacity, they will look into your business account details, so if you’re asking for more than you can afford, your lender will reject your application.

What do I need to apply for a short term business loan?

Once you’ve found loan that’s right for you, there are a few documents you’ll need to have handy before you apply, such as:

Your bank record - Your bank record might be the most important factor in your application, so you’ll need to avoid overdraws and bouncing cheques.

Your personal credit history - This will also be taken into account so it’s a good idea to take care of any lingering debt. Your lender will also take your own personal stake into consideration (having your own money in the business)

Your cash flow - You’ll need to supply your current cash flow and future cash flow projections to your lender, as this will help determine whether you are able to afford the loan.

Want to talk to a specialist?

Mozo’s business loan specialists can help find the right lender for your business.