Short Term Business Loans
Our short-term business loan is designed with flexibility in mind. You could choose to pay back your loan after just a few days or weeks and you’ll never face any early repayment fees.
What is a short-term business loan?
Our short-term business loans let you borrow money over months, not years. With an iwoca short-term loan you can borrow money quickly and repay early, so you can cover cash flow gaps or seize opportunities as they arise without being tied into a lengthy arrangement.
A short term business loan helps you access capital when it matters most. You can apply in minutes, get a decision in 24 hours and draw down the funds as soon as you are approved.
What can short-term business loans be used for?
Short-term business loans from iwoca are designed to help you adapt to the challenges and opportunities that come with running your business. That could be supporting your immediate cash flow, investing in growth or covering unexpected expenses.
You can use iwoca’s short-term business loans for any business purpose, including:
- Managing cash flow gaps
- Purchasing stock or essential equipment
- Paying your VAT bill
- Funding marketing campaigns or advertising
- Covering sudden costs or bills
- Paying for recruitment and employee training programmes
Whatever your ambitions, a short-term loan gives you quick, agile financing when your business needs it most.
Does my business qualify for a short-term business loan?
With iwoca, we make our decisions straightforward and transparent. We base loan decisions primarily on your business performance, not just your credit score. To apply, you’ll need to meet these basic criteria:
- Your business must be based in the UK.
- You need to have been trading for at least six months.
- You must generate at least £10,000 turnover annually.
Want to see how much you can borrow? Scroll down to use our business loan calculator.
Applying for a short-term business loan
Apply in minutes
Our short term business loan is designed with small businesses in mind, so we'll just need the basics about your business to make a decision.
Use your funds
We’ll approve you based on your business performance. Typically the funds will be available in hours, just draw down as much as you need to your bank account. We’ll only charge you interest on the amount you draw down.
Repay or top up
We don't charge early repayment fees: we only charge interest for the days you have the money. If you need more funds, applying for a top up is easy.
Loved by over 150,000+ small businesses since 2012
Short Term Business Loan Calculator
You’ll never face any early repayment fees, even if you choose to repay your loan after a few days or weeks.
We’ll only charge interest on your outstanding balance for the days you’re using your business loan.
Borrowing for over 12 months may incur an additional fee, typically it's 5% when borrowing for 13 to 24 months and 6% for longer.
This loan calculator is only an example, your actual rate and repayment amount for your business loan will vary based on your circumstances. Here’s another example: if you borrowed £10,000 for 12 months at 49% representative APR, with an interest rate of 40% p.a. (variable), then, all in all, the total amount you’d repay would be £12,294.
Fund your future with a business loan
No early repayment fees
If you want to repay early that’s great. We’ll never charge a fee for that. In fact, more than 20% of our customers repay ahead of schedule in their first six months.
Easy application
We’ve designed our application process to be as slick as possible: link your bank account and get going in minutes.
No hanging around
Once you’re approved, we’ll ping the money straight to your account. And if you need more later, you can apply for a top-up.
Short-term business loans FAQs
Got more questions? Find out more about how iwoca short term loans work below.
Can I get a short-term business loan with no personal and business credit checks?
During application, we run soft credit checks on your personal credit, which will not impact your personal credit score. We do run a hard credit check on your business credit score during application, which will show up on your business credit score, so keep this in mind.
It’s important to remember that our decisions are also based on your business performance, not just your personal or business credit history. So even if you haven’t got a good credit score, it may still be worth applying.
Can I get a business loan with bad credit?
Yes, it is possible to get an iwoca short term loan with bad credit, but it will depend on your business circumstances. Credit scores are only one measure of your ability to repay and your risk profile. We look beyond just your credit score at your business performance and potential.
What are the typical interest rates with short term business loans?
Our rates start at just 1.5% per month for the most creditworthy customers. Our short term business loan has a representative APR of 49%, which equates to a monthly interest rate of 3.33%. So, if you borrowed £10,000 at that rate, you’d make 12 monthly repayments of £1,025.
What makes iwoca short term loans different is that you can repay early, or overpay, any time. By shortening the term on your loan, you can save a significant amount of interest compared to a traditional business loan and lower your overall cost of borrowing.
What are the alternatives to short-term business loans?
We don’t just offer short term loans. Our long term business loans offer you flexible finance for up to 60 months. No matter the size or term, we keep everything transparent, fund you quickly and you can still repay early with no fees.
Will I need a personal guarantee?
Yes, you will most likely need to provide a personal guarantee for an iwoca short-term loan. This is the only form of security we take, since all of our loans are unsecured loans, meaning that we don’t ask you to provide collateral or business assets to secure the loan.
How do I apply?
Applying for a short term loan with iwoca couldn’t be simpler, simply sign up here and you can complete an online application in minutes. We'll ask for some basic business details, after which we can run a credit assessment and give you a decision within 24 hours. You’ll also have an Account Manager to support you throughout your application.
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Questions? We're here to help
Call us at 020 3778 0274 from Monday to Friday (9am - 6pm). We can take your business loan application over the phone, or answer your questions about applying online.
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