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What is a short term business loan?
A short term business loan from OnDeck means you can confidently make the right decisions for your business when they matter most. With a simple application process, your short term loan can be approved in as little as 30 minutes.
Get extra cashflow to support your growing business
Help you pay for urgent repairs or renovations for your business
Ensure you don't miss out on any deals due to lack of funds
See you through unforeseen or unfortunate situations
Short term business loan solution
A short term business loan is often used by businesses experiencing cash flow issues, but also works well for businesses unable to get a line of credit from a traditional bank. It provides quick access to funds that can be paid back faster than other types of business loans. As it is a type of credit, you pay fees to borrow a set amount and pay back the loan usually between 6 and 24 months. Anything longer is considered a medium or long term loan.
Maybe there was an unforeseen or unfortunate situation (like a global pandemic) that has forced you to close your doors for a time and you need a little boost to get through or want to take advantage of the quiet time to do those much needed renovations. You might have found a good deal on equipment that you can't pass up and need the funds quickly to secure the purchase. Or maybe business is booming, and you need some extra cash to support the workflow and hire new staff.
Financing from OnDeck can help you focus on and grow your business, with loans up to $250,000 available to 700+ industries.
Great you're eligible! Here's how it works:
Complete a quick and easy application - it only takes a few minutes
Loans as fast as 2 hours
Our lightning loans up to $175k can be funded in as fast as 2 hours - simply provide 6 months bank statements
$250k in a day!
More complex loans of up to $250k can be completed in as fast as 1 business day
A dedicated Australia-based Loan Specialist will be in touch to help process your application
Required documentation for a business loan application
It only takes a few minutes to apply. You will need 6 months of recent business bank statements, which can be uploaded at the end of the application via our secure portal.
As we assess each application on a case-by-case basis, you may also need to provide details of your financial circumstances, i.e. assets, debts, income and expenses.
How much can I borrow with a short term business loan?
OnDeck's short term business loans let you borrow between $10,000 and $250,000 over terms ranging from 6 to 24 months. The amount you can borrow depends on several factors including your business credit score and recent bank statements. Our dedicated Australia-based Loan Specialists can help with an indication of your expected loan amount over the phone and approval in as fast as 30 minutes. We offer flexible terms with weekly repayment options to help support your cashflow.
Short Term Business Loan Repayments
At OnDeck, we offer flexible repayment terms to suit you. The minimum term is 6 months, and maximum is 24 months, with a weekly repayment option.
Your repayment amount will depend on the loan amount agreed and the length of the term of the loan. Repayment plans can be flexible around how much you are able to payback each week.
Pros and Cons of a Short Term Business Loan
Consider these pros and cons before committing to a short term loan:
Pros of short term business loans
- The loan is paid off over a short period of time
- Shorter repayment schedule (typically 12 months)
- Fast access to capital which can be used as relief for pressing business issues
- Reduced lending requirements resulting in faster and easier approvals
- Can boost your credit score if payments are made on time
- Less total interest rate than longer term loans
- Allows small businesses to focus on other areas of the business
Cons of short term business loans
- Fast approval rates can sometimes mean higher interest rate.
- Some short term loans do not have flexible repayments so be sure to consider all options available to you first.
- Loan amounts are often limited and so may not provide enough relief for those in larger financial hardship
How much can I borrow with a short term business loan?
There are many different reasons why a business may need to take out a short term business loan. This type of loan is generally used for those big, one-off purchases or business investments. Here are some of the most common:
Example 1. Property Development
Many short term loans are used for property development. This can include expansion, décor, structural changes and so on. OnDeck can provide finance solutions for any stage of the project.
Example 2. Equity Release
If your business property has increased in value for any reason, you may have built up equity. If you need to access this equity, a short-term loan with OnDeck can help.
Example 3. Reputation Protection
You can use your loan to build your credit score and protect your reputation.
Example 4. Opportunity Optimiser
A business investment or opportunity may arise unexpectedly, requiring fast access to funds. If you can't access existing solutions, a short term loan can be a great option.
Example 5. Bank Bridger
You may have applied for a bank loan but be experiencing a long wait while the loan is processed. In the interim you can use your short term business loan so that you're not held up.
Short Term Business Loans Facts
With a lot of information to take in about whether a short term loan is right for you, we have compiled the key facts into a simple list to make things easier:
With a set minimum business credit score, it's easy to know whether or not you can be considered for a short term business loan.
A short term business loan can boost your credit score if scheduled repayments are paid on time.
If your business has had steady income, meets the minimum business revenue requirement, can make the repayment terms then you will probably be eligible for a short term business loan.
Fast application, approval and receival of money
Loan amounts are flexible depending on your income and ability to make repayments
Repayment periods range from 6 months to 24 months and can be made in weekly repayments.
Minimum documentation requirements and an easy income verification process.
What you can do with a short term business loan
A short term loan can be used in numerous ways to provide financial relief and also help your business to grow and expand. Here are some ways you might use a short term loan as a small business:
- Updating your office, workspace, or shopfront to increase customer and staff satisfaction
- Invest in new technology that will help your business grow, such as new machinery or faster computers
- Buy more stock
- Expand your stock and inventory ahead of time when entering into busy periods
- Rebrand your business and invest in new marketing materials and strategies on a broad scale
- Invest in advertising spend to promote your business
- A large business opportunity means extra cash is needed to support the workflow and potential hiring of new staff
- To build your credit score by making repayments on time
Expand your business
Tom owns a small digital agency which has been growing steadily over the past couple of years. He currently employs around 20 staff who work across a client base of small to medium retainers. Tom has been pitching for new business in order to try and grow the business and has just won a major new client.
This will be the largest client Tom and the business have ever worked with and so Tom does not currently have enough staff members or technology to service the new client. As the potential profit to be made from this large new client is huge, Tom decides a short term business loan would be the right investment as he will more than make his money back over the next 12 months with this amazing business opportunity. By obtaining the short-term business loan, Tom is quickly able to hire new staff and buy new computers and other tech in order to service the new client effectively.
Re-branding your business
Sarah's boutique clothing store has been hit hard by Covid-19 due to her customers being more careful with where they spend their money. The social distancing rules also mean that Sarah is unable to have as many people in her store at once which decreases her changes of attracting potential new customers and venue.
During lockdown, Sarah used this time to re-think her business strategy and decided this would be the perfect time to rebrand her business ready for reopening once lockdown laws softened. With Sarah's cashflow suffering during the lockdown, she decides that a short term loan is the best way to not only provide some financial relief for her business but to also use the opportunity to rebrand her business.
Sarah uses her short term loan on new advertising materials, updating her shop front to be more captivating for potential new customers. With the lockdown easing in Australia, Sarah is able to reopen her business and decides to reward her customers with offers and promotions on her products. To advertise this, Sarah uses some of the money from her loan to invest in marketing. She updates her website with the new branding, invests in social media marketing and offline marketing resources such as flyers and signs to go out front of her shop. As a result, Sarah's income sees a massive increase over the coming months and is able to pay off her loan each month whilst still making a profit.
Update old equipment
Kelly has run a small bakery in her local town over the last 5 years and is making a steady profit. However, the machinery used is old and is no longer servicing her business needs. Kelly has more customers than ever and is able to expand her menu, but unfortunately does not have the spare cash to fund it.
Kelly takes out a short term business loan and invests in all the new machinery and materials she needs in order to grow her business. With brand new equipment, not only is Kelly able to increase her menu offering, but efficiency in production has also increased, meaning Kelly is selling more bakery products and increasing her revenue.
Whatever you need your business loan for, OnDeck are here to help. Fast, short term business loans are an investment opportunity to grow your small business. The extra interest payments you may make due to the nature of this type of loan should be weighed up against the potential profitable return on your loan investment into your business.
Different Types of Small Businesses
Finance and Marketing
Businesses such as small accounting firms, tax companies or market research companies can benefit from a small business loan to:
- Upgrade or purchase powerful automation tools
- Upgrade or purchase office equipment such as printers, tables, chairs, storage cabinets
- Renovate or expand office space
Businesses such as construction/trade work, landscaping companies or house cleaning services can benefit from a small business loan to:
- Upgrade or purchase equipment such as construction machinery, cleaning supplies, or other heavy equipment required for trade jobs
- Pay contractors
IT and Digital
Businesses such as web development companies, SEO consultancies or podcast providers can benefit from a small business loan to:
- Purchase development programs or other business tools and software
- Upgrade or purchase equipment such as podcast microphones, laptops, and other hardware
Retail businesses such as boutique clothing stores, homeware stores and gift shops can benefit from a small business loan to:
- Purchase supplies in bulk as suppliers usually provide discounts for bulk buys
- Renovate or expand the store front
- Pay employee wages
Businesses such as dog grooming, personal training or hair salons can benefit from a small business loan to:
- Purchase supplies or equipment in bulk such as gym equipment, pet supplies or salon chairs
- Pay employee wages
- Cover costs for transportation if the business is mobile
What makes OnDeck's fast business loans so quick?
OnDeck is a non-bank lender, which means we aren't a bank, credit union, or building society. We need fewer financial details to be submitted with a loan application and have more flexible criteria to approve loans compared to banks. This streamlines our application process and means you can receive funding faster.
OnDeck is the secure financing service that Australian small business owners can truly rely on. Created to support and empower small businesses, we are 100% committed to serving our customers with the smartest financing solutions and a world class service.
Rate and Fees
Because non-bank lenders are privately owned institutions, they are able alter their rates and fees to stay competitive against banks and other non-bank lenders.
Easier and faster application
Banks require a more extensive set of financial documents with loan applications than non-bank lenders. This means that unsecured business loan applications with non-bank lenders are more streamlined and you can receive funding faster.
More flexible criteria
Non-bank lenders will generally have more flexible criteria when it comes to requirements for unsecured business loan applications. This can include requirements such as time in business, minimum business revenue and minimum business credit score. Customer service and customer support can also be an advantage of non-bank lenders.