Running a business comes with big opportunities and sometimes big challenges. Having quick access to money can make all the difference and that’s where short-term funding comes in.

What is short-term funding?

Short-term funding is money you borrow for a short period (usually 3 to 12 months) to meet immediate business needs. It’s not meant for buying property or funding long, slow projects - it’s a quick strategic boost.

When would you use short-term funding?

Here are a few real-world examples:

• Bridging cash flow gaps – When payments are delayed but you have bills due now.
• Taking advantage of bulk discounts – Securing stock at a reduced price when you don’t have the full amount upfront.
• Emergency repairs – Fixing machinery or vehicles so your operations don’t stop.
• Launching a quick marketing push – Running a campaign before a seasonal sales peak.

The key is that short-term funding works best for opportunities or challenges that offer a clear return in the near future.

Alternative lending vs traditional banks

Unlike banks that require assets as collateral, alternative funders like VodaLend often offer unsecured funding meaning they lend you money without needing property, equipment, or stock as security.

Because of the type of funding, the lender carries more risk. This risk is priced into the cost of capital, which is calculated differently from interest on a traditional bank loan

Cost of Capital vs Interest: Why they’re not the same

When you look at funding options, you’ll hear two terms: interest and cost of capital. They sound similar but they’re not the same thing.

Interest - The percentage a lender charges you on the money you borrowed, calculated over time. In traditional lending, this is often linked to the prime lending rate.

Cost of Capital -The total cost of borrowing, factors in how long you use the funds and the risk the lender takes when giving you money, since it’s unsecured.

Why this matters for your business

For many business owners, this speed and flexibility outweigh the difference in cost, especially when the funding helps you grab time-sensitive opportunities or operations.

Short-term, unsecured funding might have a higher cost of borrowing than a bank loan, but it offers:

• Faster approval (within 24–48 hours)
• No collateral required
• Flexible repayments tailored to your cash flow
• Early settlement discounts - you only pay for what you use and are not tied into tricky contracts with initiation or penalty fees.

Apply here: Be proactive and avoid funding delays. Get the funding you need with VodaLend - fast, flexible and tailored for your business.