Fill in the details to see an instant example of our rates
Flexible & Short Term Business Loans
Make sure your cashflow is covered throughout the year.
- Fast, flexible loan options
- Monthly flat rates from 0.7%
- Borrow £10k to £1m
- Terms from 3m
-
Bridge Cashflow Gaps
-
Flexible Short-term Funding
-
No PG Options Available
Bolster Your Cashflow with Short-term & Flexible Finance
Short term business loans can be a useful solution if you need a quick cash injection without the commitment of a long-term agreement. Sometimes unforeseen circumstances crop up, you need to cover a temporary shortfall or sudden opportunities come to light.
From hospitality and beauty through to construction and manufacturing, businesses across all industries often take a short-term business loan to boost their cashflow. Portman is able to compare the market through our panel of lenders as well as lend our own funds, giving you access to exclusive finance and a greater chance of acceptance.
We know that needing short term finance can sometimes be stressful, but what we do is simple.
What is a short term business loan?
Short-term business loans enable businesses to take a cash injection without a long repayment period. Short term loans are typically available for between £10,000 and £500,000. The business then makes monthly repayments over an agreed term of between 3 months and 2 years. For terms over 2 years you’ll need a business loan.
Short term loans allow a business to spread the cost of a variety of purchases, grab immediate opportunities or cover unexpected invoices. They are also a common way to smooth out seasonal cashflow or bulk-buy stock or materials, taking advantage of lower prices.
What is a flexible (Flexi) business loan?
A Flexi loan is a type of business funding that allows a business to borrow money and repay it over a flexible schedule. A minimum payment is made each month, the business then has the option to make additional overpayments in order to repay the loan quicker. Other forms of loan tend to involve a set schedule and require even fixed payments over a set term.
Interest is only payable until the point of settlement, so if you take a 12 month loan but feel able to repay it in full in 3 months, settle the loan and there’s no more interest to pay.
What can I use a short term loan for?
Portman has been supporting UK SMEs for over 17 years, working with established businesses and start-ups, micro businesses through to household names, across every sector of the economy. Short-term loans can be used for any legitimate business purpose but are typically used for:
- Covering tax bills
- Marketing costs
- Easing staged payments
- Operational costs
- Bulk-buying
Alternatives to short term business loans
A short term business loan is often a replacement for credit card spending, the company overdraft, using free cash in the business or a director spending their own money. For small purchases, the occasional use of these facilities may be a viable option.
However, these alternatives, may remove the ability for the business to access emergency funding when needed. It also restricts the ability to access finance in the future and may impact the business credit rating, which in turn affects the interest rate that will be offered.
If you’re looking for a term longer than 2 years, a business loan might be for you. We also have options with no Personal Guarantee required.
Are short term loans a good source of emergency business funding?
Flexible and short term finance options are popular with business owners. Short term loans can be a good source of emergency funding as they have less strict lending criteria and require less paperwork. Typically the funds are made available quickly and usually have an arrangement fee.
They should not be relied upon as a way of supporting a business that is struggling. However, they are a good way of temporarily supplementing cashflow for unexpected costs and opportunities, making a good alternative to credit cards and overdrafts.
Short term funding is usually not secured against assets, which means you might need to sign a personal guarantee. This is a common way of providing reassurance to a lender. If you are concerned about your ability to make repayments, its unlikely a short-term loan is for you.
We have a range of lending options available and can help you understand what might best suit your business including government-backed Recovery Loans.
Advantages and Disadvantages of Short Term Loans
- Easier to obtain, lower acceptance criteria
- Less paperwork
- Funds available quickly, often within 24hrs
- Wide number of providers to suit your business
- Flexible payment options
- Cost-effective if repaid early
- Use funds for any business purpose
- Can be at higher rates due to higher risk for the lender
- Smaller loan amounts if you need a big investment
- Use the funds to build the business, not to rely on
Unsure? Read our article on the pros and cons of short-term flexible loans for a closer look.
Why Choose Portman Finance Group?
At Portman, we are proud to offer a personal and professional service. Plus, since 2007, we have sourced over £1.5 billion in funding. So, whatever your business finance needs, we’re likely to be able to help.
Our clients love working with us because;
- We can finance most types of equipment
- We take time to understand your business and secure you the right loan
- We may offer finance even when others cannot
- We will do our best to help even if you don’t have a strong credit history
- You will have one point of contact from start to end
- We provide solutions quickly, sometimes within hours
Want to know more? Don’t hesitate to contact us today.
Why you should consider a finance broker rather than the bank.
General Enquiries
Do you offer seasonal payment terms?
Yes, Portman does offer seasonal payment terms. Many of our customers naturally experience high demand for their services during certain times of the year as well quieter periods during others. We tailor all finance agreements to the needs of each business, and lower payments can be arranged during periods when there is a predictable reduction in trade.
Do you provide finance outside the UK?
Unfortunately, Portman can only finance companies registered and operating in the UK.
How long will I be paying back the finance?
Terms are available between 2 and 6 years. Options available to you may be dependent on the circumstances of your business, but then the final choice is up to you.
I thought finance was just for people who can’t afford to buy?
On the contrary, asset finance is designed to spread costs over a period of time, whilst your new equipment generates revenue. Using your business’ cash or credit card and buying outright can mean that there’s no free cash for emergencies or to cover fluctuations in demand. Using finance helps even out the monthly budget and choosing a lease finance or hire purchase deal allows you to treat tax in different ways which may suit your business better. Finance allows you to get what you need now, rather than waiting to buy outright, this helps avoid inflation, as you buy at today’s prices and means you have use of the asset immediately to help grow your business.
How Should I Manage & Avoid Late Payment Fees & Charges?
Receiving late payments or paying late yourself can create hurdles affecting your financial stability and the relationships you’ve worked hard to build with your clients. Read how you can both avoid and manage late payments with Portman’s helpful guide on Late Payment Fees & Charges.
Business Loans FAQs
Are business loans hard to get?
The ability to get a loan and the best available rate depends on your business’ individual trading history as well as the financial history of any directors. It may be easier for long-established businesses with a healthy balance sheet to obtain finance than for newer businesses or those who have had financial difficulties. However, as both a lender and a broker, Portman can match the requirements of our customers with the lender most likely to offer finance, giving you a greater chance of success.
How do I get a business loan?
You can enquire online by using our eligibility checker. Click ‘get started’ at the top of the page and complete your details on the enquiry form. Once you have submitted your details, one of our account managers will contact you to discuss your needs. We do need some business documentation from you but will complete proposals and applications on your behalf.
How to apply for a business loan?
You can enquire online by using our eligibility checker enquiry form. Click ‘get started’ at the top of the page and complete your details on the enquiry form. Once you have submitted your details, one of our account managers will contact you to discuss your needs. We do need some business documentation from you but will complete proposals and applications on your behalf.
