Home - Services - Short Term Business Loans
Short term business loans cover funding needs with a natural end date: a seasonal stock order, a gap while you wait on a large invoice, a tax bill, or a project that pays out on completion. You borrow over 3 to 12 months, repay from the money that’s already on its way, and you’re done. No multi-year commitment hanging over a need that only lasts a quarter.
At Formation Finance, we arrange short term business loans the same way we assess everything: on how your business actually trades. Recent revenue, cash flow and trading history, not property security. If you have an active ABN, at least 4 months of trading and $10,000+ in monthly revenue, you can likely qualify. Borrow from $5,000 up to $500,000 unsecured, and pay out early whenever you’re ready, with no penalty.
| Key Features | Short Term Business Loan(Unsecured) | Business Line of Credit |
|---|---|---|
| Loan amount | $5k – $500k (up to $5M with guarantees) | Up to $750k |
| Term | 3 – 12 months | Ongoing / revolving |
| Repayment | Daily, weekly or monthly | Pay interest only on funds drawn |
| Security | None (director guarantee may apply) | None (director guarantee may apply) |
| Min trading history | 4 months | 6 months |
| Min monthly revenue | $10,000 | $20,000 |
| Interest rate from | From 12% p.a. (case-by-case) | From 14% p.a. (case-by-case) |
| Early payout | Anytime, no penalty (some products discount interest) | Repay and redraw as needed |
| Typical timeframe | Funds same day at the fastest, typically within 1 to 2 business days | Indicative within 1 business day • Funds 1–3 business days |
All figures are indicative only and not an offer of finance. Availability, terms and timing are subject to lender approval, credit assessment and receipt of required documentation. For business and investment purposes only.
Repayment estimator
Estimate repayments on a short term business loan from $5K to $500K over 3 to 12 months. Move the sliders to see how a shorter term changes what you repay.
Short terms change the shape of a loan. Repayments per week are higher because you’re returning the principal faster, but the total interest is much lower because the money is out for less time. Here’s a typical loan for a retailer turning over $80,000 a month, borrowing for a seasonal stock order:
| Loan | Term | Weekly repayment | Total interest | Total repayable | Share of revenue |
|---|---|---|---|---|---|
| $60,000 | 6 months | ≈ $2,380 | ≈ $1,890 | ≈ $63,390 | ≈ 12.9% of monthly turnover |
Notice the repayment share sits above the usual 10% comfort line. That’s normal for short terms, and it’s fine when the loan is timed against money you can already see coming: peak season takings, a confirmed invoice, a progress payment. That’s the real test for a short term loan. Not “can I afford this every week forever”, but “does the incoming revenue arrive before the term ends”. If it doesn’t, a longer term with smaller repayments fits better. It’s your call how much and how long to apply for. These numbers just help you decide with your eyes open, and lenders run a similar affordability check on their side anyway.
Costs are simple and confirmed upfront: rates from 12% p.a. depending on your profile, an establishment fee of 1.5% to 4% of the loan amount, and no early repayment penalty. Pay out early and some products discount your remaining interest, which suits short term borrowing especially well. Everything is put in writing before you accept.
We Need Just Three Things:
No property required, no business plan, no two years of financial statements. Lenders assess you on your bank statements and recent trading.
What helps most on a short term application is a visible repayment source: seasonal revenue that’s about to arrive, a large invoice due within the term, a progress payment on a signed contract, or a tax refund. You don’t need documents proving it in most cases, but timing your application so your bank statements show the pattern makes approval easier and often improves the amount offered.
A homewares retailer in Melbourne’s east had supplier quotes for its biggest Christmas order yet, with a 15% early-order discount expiring in a week. The business had the sales history to justify the order but not the spare cash in October, when rent, wages and BAS had just gone out.
Through Formation Finance, the owners secured a $70,000 short term business loan over 6 months, approved on their bank statements within one business day. The funds covered the full order plus freight, and the early-order discount alone offset most of the borrowing cost.
December trade came in 40% above the previous year. The owners paid the loan out in full in late January, four months early, with an interest discount for early payout. Total borrowing cost after the discount was under $1,800 against a stock order that returned its margin twice over.
Loan type: Short Term Business Loan (Unsecured)
Amount: $70,000
Term: 6 months, paid out at month 2
Purpose: Seasonal stock order with early-order supplier discount
Result: December revenue up 40% year on year, loan cleared 4 months early
A short term loan matched the shape of the need: money out in October, money back in January, nothing left owing by February.
01 Apply in minutes
A 10-minute online form. No tax returns or financials for loans under $150K.
02 Verify your bank statements
Through a secure online link. No printing, scanning or chasing paperwork.
03 Get funded
Same-day funding at the fastest, typically within 1 to 2 business days of approval.
For a business with steady takings, smaller frequent debits are often easier to manage than one large monthly hit. Where it goes wrong is borrowing too much relative to turnover. Before you accept an offer, check whether debits pause or only retry on low-balance days, whether you can switch frequency later, and what the dishonour fee is. We flag all three on every product we place.
Yes, anytime, with no penalty. Some products discount your remaining interest for early payout, which is exactly how short term borrowing should work: the need ends, the loan ends.
Depending on the lender and your repayment history, terms can often be renewed or refinanced before maturity. Talk to us before the term ends rather than after, as options are wider earlier.
We assess your scenario first and approach the lender most likely to approve your profile, so you typically end up with one credit enquiry rather than several.
