Short-Term loans are utilized as a way to fill immediate, short-term needs or cash flow issues. This type of loan doesn’t require a lot of paperwork, funds quickly, and can be used for almost any business purpose. Short-term loans are perfect for purchasing inventory, filling gaps between accounts payable and receivable, as well as any emergency repair or maintenance expenses that may pop up.
A medium-term loan is one where you borrow money and pay it back within a fixed term at a set interest rate. This type of loan allows you to build your credit and you will have fixed monthly payments.