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Short-Term Business Loans Up to $5m
Updated 11 Jun 2025
Compare short-term business loans to suit your needs, with finance terms starting from three months.
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How to get short-term business finance with Money.com.au
In just three simple steps...
Step 1
Tell us what you need
What are your plans for the finance and how soon do you plan to repay it? Understanding this will help us find lenders to match.
Check if I qualify
Step 2
Compare lenders
We’ll present you with short-term finance options, allowing you to compare rates, fees and limits from a range of providers.
Compare business loans
Step 3
Apply
We’ll do the legwork to prepare your application, giving you the best chance of fast approval.
Apply today
What is a short-term business loan?
A short-term business loan is a type of unsecured business finance with a term of between one month and three years. They are usually used by businesses to cover sudden expenses or to capitalise on a limited-time growth opportunity. They are also popular with seasonal businesses in Australia.
With a standard business loan, one year is typically the shortest term available. But with short-term finance, lenders are specifically targeting businesses looking for a truncated repayment schedule.
A short-term business loan provides access to funds for any genuine commercial purpose. Lenders will assess your business revenue to determine whether it can comfortably repay the loan amount. The business will agree to repay the loan amount plus interest over an agreed term.
What can you get?
- Loans from $5,000 up to $5 million
- Terms between 3 months and 3 years
- Finance is usually unsecured but can be secured
- Available from specialist online lenders
- Generally fast approval and funding
- Generally higher interest rates and fees than long-term finance
Compare short-term business loan options
Bizcap | |
Minimum loan term | 3 months |
Loan amounts | $5,000 - $5 million |
Lumi | |
Minimum loan term | 3 months |
Loan amounts | $10,000 - $300,000 |
Prospa | |
Minimum loan term | 3 months |
Loan amounts | $5,000 - $150,000 |
Banjo | |
Minimum loan term | 6 months |
Loan amounts | $20,000 - $2 million |
Business Fuel | |
Minimum loan term | 6 months |
Loan amounts | $10,000 - $500,000 |
OnDeck | |
Minimum loan term | 6 months |
Loan amounts | $10,000 - $250,000 |
Scotpac | |
Minimum loan term | 6 months |
Loan amounts | $10,000 - $500,000 |
Dynamoney | |
Minimum loan term | 12 months |
Loan amounts | $5,000 - $500,000 |
Moula | |
Minimum loan term | 12 months |
Loan amounts | $10,000 - $250,000 |
| Minimum loan term | Loan amounts | |
|---|---|---|
Bizcap | 3 months | $5,000 - $5 million |
Lumi | 3 months | $10,000 - $300,000 |
Prospa | 3 months | $5,000 - $150,000 |
Banjo | 6 months | $20,000 - $2 million |
Business Fuel | 6 months | $10,000 - $500,000 |
OnDeck | 6 months | $10,000 - $250,000 |
Scotpac | 6 months | $10,000 - $500,000 |
Dynamoney | 12 months | $5,000 - $500,000 |
Moula | 12 months | $10,000 - $250,000 |
How short-term business loans work
Short-term business loans are used in Australia by businesses that require fast access to finance and can demonstrate an ability to comfortably repay the loan amount over a short period of time.
There are two types of short-term business loans...
Secured short-term business loans
A secured short-term business loan uses an asset (also known as ‘collateral’), such as residential property, as a guarantee on the loan. Secured finance usually means you get a lower interest rate and can borrow a higher amount. However, the application process may take longer.
Unsecured short-term business loans
An unsecured short-term business loan does not require any security. With unsecured business finance it's usually possible to get the loan approved faster, but higher interest rates and fees may apply. It may be difficult for newly-established businesses to be approved for unsecured short-term finance.
Why might you need a short-term business loan?
Immediate operating costs
Short-term finance is generally used to cover immediate operating costs where there is a temporary cashflow gap, particularly for seasonal businesses. That could include ordering stock, paying suppliers or contractors.
Unexpected one-off bill
If your business all of a sudden has a large, one-off cost to absorb, a short-term loan could provide the up-front capital to pay the bill. A short repayment term means the cost does not turn into a long-term liability.
Eligibility challenges
If your business does not qualify for a standard business loan term, some lenders may be willing to lend to you on a shorter contract. This is less risky for lenders, assuming you can service the repayments.
Limited-time growth opportunity
Short term business finance can also allow businesses to capitalise on growth opportunities even if they don’t have the cash reserves to fund it otherwise.
Short-term business loan example
A retail business has been working hard for a number of years to operate in the same area as a competitor. Over time, they are able to compete at a higher level than the rival retail store, who announce that they are entering liquidation. The competitor will be selling their remaining inventory at a heavily discounted price — but only for a few days.
To maximise on the opportunity and secure the discounted inventory, the owner of the retail business takes out a short-term business loan to access $50,000 in immediate funding and close the sale on the remaining stock.
As the inventory is heavily discounted, the retail business greatly increases its profit margin on each sale, with part of the increased revenue going towards the loan repayments.
Around 1 in 5 business loan requests in 2025 are from businesses looking for immediate access to day-to-day capital to plug a cashflow gap, Money.com.au data shows.
Is short-term finance better than long-term finance?
Deciding between short and long-term business finance comes down to what you need the funds for. Short-term finance can be ideal for an expense which the business can recoup quickly or otherwise repay in a short amount of time, like purchasing stock. Longer-term finance is better if you want to maintain cashflow by spreading the cost over a longer period, such as an asset purchase.
But there are some other significant differences to factor into the decision too. If you're not sure whether a short-term loan or a long-term loan is best for your business, here are some of the main features of each.
Short term business loan
- Term: 1 month - 3 years
- Rates: Usually higher and often represented as a factor rate, particularly if the loan term is less than 12 months.
- Fees: Up-front (often a percentage of the loan amount)
- Loan purposes: Unexpected one-off costs, cash flow during quiet operating periods, buying extra stock, one-off growth opportunities, paying a tax bill
Long term business loan
- Term: 3 - 7 years
- Rates: Usually lower than short-term loans but costs add up significantly over time. Particularly if there are recurring costs.
- Fees: Up-front and ongoing fees, fees for early repayment.
- Loan purposes: Purchasing assets, vehicles and machinery, acquiring another business.
Cost comparison...
Loan amount | |
Short term business loan | $100,000 |
Standard business loan | $100,000 |
Interest rate | |
Short term business loan | 16% |
Standard business loan | 12% |
Loan term | |
Short term business loan | 1 year |
Standard business loan | 3 years |
Weekly repayment | |
Short term business loan | $2,084 |
Standard business loan | $764 |
Total interest cost | |
Short term business loan | $8,367 |
Standard business loan | $19,192 |
| Short term business loan | Standard business loan | |
|---|---|---|
Loan amount | $100,000 | $100,000 |
Interest rate | 16% | 12% |
Loan term | 1 year | 3 years |
Weekly repayment | $2,084 | $764 |
Total interest cost | $8,367 | $19,192 |
Phil Collard, Money.com.au Business Finance Broker
What’s important is finding a product, a finance structure and term length to suit your business. All borrowers should ask themselves, what is my business comfortable paying per week, per fortnight, per month in terms of repayments? That then dictates most other decisions about your finance. There's no point in you doing a longer loan term to get lower regular payments than you can afford if you plan on paying it out in the first third of the loan period. It's just going to hurt you on the back end with extra interest or break costs.
Phil Collard, Money.com.au Business Finance Broker
How to qualify for a short-term business loan
Qualifying for a short-term business loan can be relatively simple. If your business bank statements illustrate an ability to comfortably repay your desired loan amount within the agreed loan term, you will qualify for approval, assuming you meet the basic eligibility requirements:
- Have been trading for at least 6-12 months;
- Have an ABN and are registered for GST (including sole traders and self-employed individuals)
- Have a clean credit history (you can check your credit score for free before you apply)
- Can provide a personal guarantee to secure the loan
Low doc business lenders often approve customers with the bare minimum of documentation and no credit check. Speak to a Money.com.au business finance broker to discuss your application options.
How to apply for a short-term business loan
There are two main types of applications, which will depend on the amount you wish to borrow. Either way lenders will assess an application based on the monthly revenue of the business, its intended use for the loan, how the loan will benefit future business revenue, and more.
Borrowing less than $150,000
For smaller loans, the approval process will be fairly simple and you may even be approved on the same day. You can generally apply online with a number of different specialist business loan lenders, including those who provide short-term business loans designed specifically for SMEs.
You'll need to provide:
Proof of identity An ABN and GST registration Business bank account statements Trust Deed if the business is held in a trust
Borrowing more than $150,000
For larger amounts, your lender will require all the documentation provided if borrowing less than $150,000 plus additional information to assess your application. You'll typically need to speak directly with a broker or lender, as opposed to being able to apply completely online.
You'll need to provide financial records provided by your accountant… Profit and loss statements Balance sheet
Bank account conduct is key for getting approved
Phil Collard, Money.com.au Business Finance Broker
Lenders generally place a lot of weight on the applicant’s bank statement conduct. If you are running low balances consistently, dishonouring regularly, or are overdrawn in your business bank account regularly, that could be an issue. The number one thing we say to customers who may in the future go down the path of getting a business loan is make sure at least the last six months' worth of banking conduct are as squeaky clean as you can get them. No dishonours, little overdrawn days to none. Make sure you've got a healthy amount of running balances on your bank statements.
Phil Collard, Money.com.au Business Finance Broker
More business loan guides
Short-term business loans FAQ
Are there any alternatives to a short-term business loan?
If your business needs a short-term injection of capital, there are a few alternatives to getting a term loan:
-
For ongoing access to working capital, a business line of credit or business overdraft are popular options. These provide ongoing access to credit meaning you can draw down funds as needed and repay them when you have the funds available. You can draw down funds as often as your businesses needs, up to your credit limit.
-
Invoice finance is another potential source of short-term finance for businesses with outstanding invoices. This involves selling your invoices to an invoice financier who pays you up to 80% of the value of those invoices up front.
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For longer-term investment, like purchasing equipment and asset finance, a chattel mortgage will generally be more suitable.
How do I qualify for a short-term business loan?
If you operate a business in Australia, have an ABN and are registered for GST, you can likely qualify for a short-term business loan if you are able to provide bank statements and meet minimum operating criteria set by each lender.
Why might my short-term business loan application be declined?
The number one reason short-term business loan applications are declined is because your business financials do not illustrate an ability to service the loan amount.
You can strengthen your application by providing a lender with a business plan — a detailed plan showing how you plan to use the funds and meet your repayments.
Other common issues with applications include:
- A bad credit rating: In other words, the business owner or director has a bad credit score.
- Limited customer base: Your revenue is too dependent on a small number of customers.
- Poor projected growth: The outlook for your market sector is poor and your business may struggle to meet the loan repayments.
- You’re a new business: Your business hasn’t been operating for long enough and a lender cannot accurately assess your revenue.
How fast is approval for a short-term business loan?
If you are borrowing less than $100,000, you can generally apply with a lender online and get approved on the same day by only submitting your business bank statements and identification.
Can I use short-term finance for any purpose?
Technically, you can use short-term finance for any legitimate business purpose. However, there are a number of different business loans in Australia and each of them has its own benefits and best-use scenarios. Consider comparing all your options before applying.
How much can I borrow with short-term business loans?
You can generally borrow between $5,000 and $5 million with a short-term business loan. However, this amount will vary between lenders and will depend on the strength of your application and business turnover.
Can I repay the loan even sooner if cashflow allows?
It may be possible to pay out a short-term business loan early but exit or break fees generally apply. These compensate the lender for interest they will not earn over the remaining term of the loan. Break fees can be significant so it’s important to choose your loan term carefully, or find a lender who will let you pay out the loan early without penalty.
Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.
Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.
