You should consider the following disadvantages of a short-term business loan before applying:-
Higher monthly instalments: Small loans may have shorter terms, but the monthly repayments are higher. Besides, the overall interest rates will be lower, but paying high instalments can be a problem during unsettled cash flow.
High-interest rates: One drawback always remains with smaller business loans. Lenders keep the interest rate on the higher side because no collateral is involved, and your company is getting limited returns.