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Compare · 2026

Short-Term vs Long-Term Business Loans for Contractors

Longer terms lower the payment; shorter terms lower the total cost. Here's how to choose.

Short answer: A short-term loan has higher payments but a lower total cost and clears fast — good for quick, revenue-generating needs. A long-term loan spreads payments out, easing monthly cash flow, and suits large purchases like equipment or expansion. Match the term to the life of what you're funding: short for cash flow, long for assets.

Reviewed by the Funded Contractor Capital Funding Team · Updated July 2026

How funding works, step by step

From application to funding in four steps — most contractors complete it within a day.

1

Apply in 5 minutes

Complete a short online application. It uses a soft credit pull that does not affect your score.

2

We review your deposits

Approval is based on your last 3 months of business bank statements — not tax returns or the contract.

3

Get your offer

Review your amount and terms up front, with any fees disclosed before you accept. No obligation.

4

Get funded

Sign and receive funds by ACH, often within 24 hours of approval.

Short-term vs long-term

How term length changes the trade-off.

CriteriaShort-TermLong-Term
Term3 – 18 months2 – 7 years
Payment sizeHigherLower
Total costLowerHigher
Best forFast cash-flow needsEquipment, expansion
Clears inMonthsYears

Why contractors fund with us

  • One application shows you every option you qualify for
  • FICO 500+ accepted; approval on revenue
  • Funds in as little as 24 hours
  • We recommend the lowest-cost fit, not the priciest
  • Fixed payments or revenue-share — your choice
  • No tax returns — 3 months of bank statements

What you need to apply

  • US-based contracting business
  • 6+ months in business
  • ~$30,000+ in monthly revenue
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

Should a contractor take a short or long term?
Match the term to what you're funding — short-term for quick cash-flow needs you'll recover fast, long-term for assets like equipment you'll use for years.
Do longer terms cost more overall?
Usually yes — a longer term lowers the monthly payment but raises the total cost, while a shorter term does the opposite.
Which option can I get fastest?
Most of these fund within 24 hours of approval. The application takes about 5 minutes with a soft credit pull that doesn't affect your score.
Can I qualify with bad credit?
Yes — FICO 500+ can qualify, because approval is weighted toward revenue and bank-deposit consistency rather than credit score.
Is this a business loan or a cash advance?
Both are available. The right structure depends on your revenue, credit, and how you prefer to repay — fixed payments or a share of your deposits. We show you the options you qualify for before you commit.
What can I use the funds for?
Any legitimate business purpose — payroll, materials, equipment, mobilization, covering the gap between draws, or growth. There are no restrictions on how you deploy working capital.
Are there any upfront fees to apply?
No. Applying and getting a decision is free, and any fees are disclosed in your offer before you accept — so there are no surprises.

Sources & further reading

Figures on this page are typical 2026 industry ranges provided for general information; your actual terms are set at application.

Find the right term

Apply in 5 minutes with a soft credit pull.

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Comparisons reflect typical 2026 industry structures for general information and vary by lender and underwriting; your actual terms are set at application. Product and company names referenced are the property of their respective owners.