5 Benefits of a short term business loan
If you’re considering business financing, there’s a few things you need to know about short term business loans that could help you make the best decision.
A short term business loan is a great option for your business if you need a quick cash injection to help you scale or grow your business, invest in an exciting opportunity or even if you just need a little extra cash flow. Unlike traditional business loans, short term business loans are often paid off in a few months or up to 3 years.
Here’s 5 benefits of short term business loans:
Capitalise on an opportunity quick!
Have you ever had an opportunity slip through your fingers because you couldn’t act quickly enough? Short term business loans are usually a quick and easy application process, and you could be approved within hours! The best part is, you could also have your funds within 24 hours – meaning you can capitalise on opportunities while they’re available to you.
Stay afloat during emergencies or seasonality
On the flip side of that coin, maybe it’s about reducing cash flow gaps or having the cash available to you when you need it most. All businesses face peaks and valleys over the course of a year – and that’s not to mention the emergencies that pop up! A short term business loan can take the pressure off your cash flow during these times.
Easier to qualify for short term business loan
Unlike traditional lending, short term business financing can be easier to qualify for as you don’t usually need security or assets for collateral. Most short term business loans require minimal paperwork and basic eligibility criteria – like how long you’ve been in business and your monthly turnover.
Flexibility and better terms
Short term business finance can offer much more flexibility as many lenders work to customise their offering to suit individual borrowers. This might include repayment terms, varying interest rates, repayment options, and more. Plus, it means you’re not locked into a loan for several years like some traditional lenders – and that’s got to be a good thing.
Cost effective in the long run
Shorter repayment schedules can mean a more cost-effective option in the long run. Even though short term business loans can have a higher interest rate than traditional business financing, over the course of the years it would take to pay back traditional loans, you could have saved $1000s in interest.