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Pick the term that matches how long the thing you are buying takes to pay for itself. That single rule settles most of these decisions.
✓ Checking what you qualify for does not affect your credit score.
| Short term | Long term | |
|---|---|---|
| Speed | Hours to a day | Weeks |
| Documents | Bank statements, ID, voided check | Returns, financials, often projections |
| Cost per dollar | Higher | Lower |
| Payment size | Larger, more frequent | Smaller, monthly |
| Best for | A deadline or a fast-turning buy | Expansion, build-out, equipment |
Borrow over roughly the period the purchase takes to pay back. Inventory that turns in six weeks suits short-term funding. A second location that takes two years to mature does not — putting that on a daily remittance strains cash long before the location contributes.
The most common mistake is the reverse of what people expect: not borrowing too much, but borrowing over too short a term for what the money is doing.
If you have months of lead time and clean books, the cheaper long-term money is genuinely available and you should take it. We will say so rather than place something faster and more expensive that you did not need.
Per dollar borrowed, generally yes. You are paying for speed and lighter documentation.
Sometimes there is a discount for early repayment and sometimes the total is fixed. Ask before signing — it changes the maths on a fast-turning buy.
Short-term, generally. It is underwritten on deposits rather than returns and projections.
Yes, and it is common — short-term funding for an immediate deal while a longer application runs. Model both payment schedules running together first.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
