Just like the name implies, a short-term loan is one of the fastest, and most popular, ways for small businesses to find the money they need with a short turnaround. But how do you define a short-term loan? The simple definition is that they’re exactly what they sound like. They’re loans uniquely designed to be dispersed quickly and paid back just as fast.

A short-term loan is intended to be repaid in one year, although they’re often repaid even faster. However, there’s more to a short-term business loan than meets the eye. Although fast access to capital can make a short-term loan look like an attractive option, everything isn’t so simple.