Small business owners face unexpected expenses, no matter how much planning is involved. Thinking fast and coming up with quick and innovative solutions can be the difference between closing the business or propelling your company to the next level.
When time is in short supply, a short term business loan may be the perfect solution. Short-term business loans are offered in several different forms.
- A lump-sum installment loan with a preset and fixed number of regular payments.
- A small business line of credit that can be reused when repaid. Payments will vary, depending on the outstanding balance each month.
- Invoice factoring – which is where a business owner sells their receivables to a third party – at a discount. Technically, it is not a loan because there no debt is incurred. It is, however, a legitimate way for a business to raise capital fast.
A short-term business loan has a repayment period from three months to three years; however, some are offered for more extended periods, depending on the circumstance. Alternative lenders, fintech companies, and even the SBA (Small Business Administration) offer short-term business financing options.
How a Business Can Benefit From a Short Term Business Loan
Short-term business loans are built for speed – some are designed to deliver funds within one day. They’re a quick financing solution for immediate business expenses. In many cases, access to fast financing can mean the difference between a positive and negative business outcome.
The Application is Simple
Short-term loans require minimal paperwork compared to longer-term loans. Plus, in many cases, applications can usually be completed online – allowing you to save significant time.
Easy to Qualify For
A short-term business loan is typically a non-collateralized loan, which allows newer business owners, without sufficient assets, to secure financing for their business needs. In addition, short-term business loans are issued with less restrictive underwriting or approval guidelines, which greatly improves funding access and expedites the entire process.
Flexible Options for Repayment
Short-term loans are offered to business owners with an added flexibility that allows them to meet the unique needs of their business.
Take Care of Immediate Business Needs
When unexpected expenses disrupt a business’ cash flow, a short-term business loan is a smart way to solve an acute financial problem. Short terms funds can also be used to invest in your business’s future and growth plans.
A short-term business loan, which is sometimes referred to as a short-term commercial loan, offers business owners easy access to fast financing, which can help them meet unexpected expenses. Financing provided by a short term business loan allows you to:
- Fill cash flow gaps, which can happen occasionally to any profitable businesses of any size.
- Meet the financial needs arising from emergency expenses and other scenarios.
- Develop towards longer-term business objectives and goals.
- Take advantage of a new and promising business opportunity.
Before submitting an application for a small business loan, consider all available options to ensure you make the best decision for the business. A qualified business loan consultant can help you find a small business loan that checks all your boxes.
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