Learn about the typical term lengths for small business loans: Short vs Long


Every business needs cash in its bank account to run properly. It doesn’t matter how big or small – cash flow is everything. It’s one of the few things that a corner shop and a massive international business have in common!

Naturally, that means some businesses need to boost their cash flow from time to time. Just like most people can’t afford to put several thousand pounds down for a new car instantly, a business owner also can’t afford to buy some of their assets up front either. That’s why they need a bit of help from a small business loan.

Flexible business finance gives business owners the time and resources to invest and keep growing. With that essential extra cash, those great opportunities will be within reach.


Article Contents

  1. Short, medium, and long term business loans
  2. Understanding short term business loans
  3. Understanding medium term business loans
  4. Understanding long term business loans
  5. Repay over 6 to 12 months with Capify


Short, medium, and long term business loans


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Small business loans can be short term, medium term, or long term. Short term loans usually spread repayment out over just 6 months, while long term loans can structure repayments over several years.

The kind of loan you go for all depends on the terms of the lender and what you agreed when you took out the loan. Some lenders specialise in one specific type, others are more flexible.

There are lots of options available, and they were all created to make business finance more accessible and easier to repay.



Understanding short term business loans


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Short term loans are handy for small businesses that want to raise finance quickly and repay it over a short period.

6 months of repayments can involve larger payments rather than cheaper payments spread out over several years. It can free up your finances much quicker, and give you the chance to raise more cash sooner if you need it.



Understanding medium term business loans


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Medium term loans can help you keep cash coming into your business over a longer period. Repayment is usually over 12 months or more.

Small business owners often opt for a medium term loan instead of a short term loan because they want to spread the repayments out more. It’s easier to manage their cash flow when the regular payments are more manageable.

You’ll be able to plan how you spend the money, and how you manage your usual operations, while you repay.



Understanding long term business loans


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Long term loans give you several years to repay. This works for businesses that want to keep regular payments low, and don’t mind spending a bit more time paying it off.

It sounds like a bigger commitment, but long term loans often have fixed interest rates that stay the same from day 1 until the day you’ve paid it all off. If you choose this type of loan, there’ll be no nasty surprises or sudden extra fees – every regular payment will be the same.



Repay over 6 to 12 months with Capify


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You could raise £5,000 to over £150,000 with Capify’s Small Business Loan. It’s easy to get your cash quickly, and repayment is manageable and predictable.

Instead of repaying large monthly payments, Capify will take a small daily or weekly payment over a 6 to 12 month period until your loan is repaid.


The personal touch
You’ll speak exclusively to your own dedicated account manager. They’ll guide you through the application process and answer all your questions.


UK-based support
Our HQ is based in South Manchester. We work with small businesses all over the UK.


Manageable repayments
Make small, regular payments. You can focus on growing your business while protecting your cash flow.



Raise £3,500 to over £150,000 for your small business

Capify offers flexible finance with simple repayments. There are no massive monthly Direct Debits to think about, just small manageable payments that are easy to keep track of.

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