What is different about a Spotcap short-term loan?
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It’s your business, so you choose how to use the funds. Our short-term loans are a versatile solution for many business activities.
Qualification and eligibility criteria
What we look for in applications
How does a Spotcap short-term loan work?
Below is an example of Spotcap’s approach, focused on simplicity and flexibility
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What’s different about a short-term business loan?A short-term loan is a type of credit facility than can be repaid within a period lasting between 1 month and 24 months. Compared to its long-term counterpart, this type of loan comes with smaller credit amounts, but can be arranged faster and with less admin.
Because they can be originated quickly, short-term loans are mostly used to meet a company’s immediate financial needs. These could include covering seasonal payments, bridging gaps in cash flow, or restocking your shelves.
How do I know it’s the right fit for my business?We always recommend talking to a certified financial advisor who can take into account your specific circumstances. But as a general rule of thumb, short-term loans are used by businesses that need fast access to funds and know they are able to repay the loan reasonably quickly. Typical scenarios include gearing up for a new contract with inventory, or taking on additional staff to cope with a rising workload.
Larger commitments, such as purchasing high-value equipment or property, are better served by long-term loans with more substantial credit amounts and longer repayment periods.
How long can a short-term loan last?With Spotcap you receive a maximum loan term of 24 months, but you also have the option to shorten it without incurring additional fees. Once a month has passed from withdrawing the funds, you can stay with your pre-arranged repayment schedule or fully repay the loan at a time that suits your plans.
What should I consider before applying?Loan size. Short-term loans are rarely enough to cover a substantial expense, e.g. over $500,000. Instead, many businesses treat them as smaller — but faster — boosts that can temporarily support their cash flow until profits come in.
Repayments. If your business has long turnaround cycles, repayments could put too much stress on your finances. Consider discussing your options with an accountant or financial advisor.
What fees can I expect with a Spotcap loan?There are no application fees, meaning you will bear no costs for being approved.
There are no early repayment fees. After one month from drawing down, you can repay the full loan amount without incurring any charges.
The cost of financing with us includes the loan’s interest rate — which is based on your risk profile — and a drawdown fee that is charged per withdrawal as a percentage of the borrowed amount. Click here to learn more about our pricing.
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