A short-term business loan is a type of loan that’s intended to be paid off much faster than a regular business loan. While traditional business loans can take several years or decades to pay off, short-term business loans are often paid off in a matter of months, although some can last for up to three years. Exact repayment terms will vary, but most short-term business loans last for one year or less.

Some common types of short-term business loans include merchant cash advances and invoice financing.