Finance in Fifteen - Short-Term Lending

Short-term business funding is becoming more common, and more visible across the market. In this episode, David and Trevor look at the rise of non-bank lenders offering 12 to 24 month business loans, and why so many businesses are turning to them.

These products are typically fintech-driven, quick to apply for, and funds can often land in a business account within days. For companies dealing with immediate pressures, such as unpaid invoices, VAT bills, or a short-term cashflow gap, that speed can be a lifeline. Many of these facilities are also designed to be repaid quickly and often come with no early repayment penalties.

But convenience comes at a cost. Interest rates can be high, and  personal guarantees are typically required, which means business owners carry personal risk. The key question becomes...is this type of funding the best fit, and can the business realistically repay the loan over a short period?

The conversation also explores some of the risks that are starting to appear in the market. Multiple applications through different brokers, stacked loans from several lenders, and decisions made too quickly because the process can be so easy. When speed and convenience take centre stage, careful decision-making can sometimes fall behind.

This episode also looks at when short-term funding works well and, more importantly, when it doesn’t…and why guidance from experienced business finance professionals can make a real difference before committing to any form of debt finance.