How Does a Short-Term Loan Work?

As a small business owner, additional financing is often necessary when you’re having minor cash flow problems. Whether it’s to pay for last-minute expenses or take advantage of timely business opportunities, short-term loans are uniquely designed to help business owners in need when they need it the most.

A recent study conducted by U.S. Bank revealed that 82% of small businesses fail because of poor cash flow management. To smooth uneven cash flows, many business owners turn to short-term loans as a flexible solution. In addition, it can be more cost-effective and convenient than a credit card or traditional bank loan.

If you’re still unsure as to what this form of credit is, how you can qualify, and how to determine if it’s right for your business, keep reading!

What is a Short Term Loan?

A short-term loan is a type of business capital loan that can provide your company with quick working capital. Like other bank loans, you’ll receive a lump sum of cash upfront, which is repaid to your short-term lender over a set period of time.

We provide short-term loan funding from $5,000 to $500,000 on flexible and customized payment structures with no pre=payment penalties. This is not a credit-based product that provides quick access to funds, and all industries are accepted. It’s important to note that the right short-term financing can make or break a company.

The Magic Behind Short Term Loans

Once you decide to request short-term financing, it’s important to understand how the process works. Lending standards might be more lenient, but you’ll still want to strengthen your chances. Know that lenders may look at both your business financials as well as your personal credit score.

The repayment is a fairly straightforward process, and obviously shorter than traditional loans. Short loans may only last a few months or up to a year. As a result, the amount of capital you can actually borrow is much less than you’d get with a long-term loan.

Obviously, borrowing any money for your business is a huge decision and should not be taken lightly. When considering if a short-term loan is right for your company, it’s wise to weigh the advantages and disadvantages. The advantages of a short-term business loan are:

Build Your Business Credit

Seize Growth Opportunities

Quick Approval and Funding

Are you having trouble getting approved for traditional financing? Are you looking for a short-term loan with flexible payment options? We can provide a solution perfect for your business!

Apply now for a short-term business loan – this will not impact your credit and will not cause hard inquiries!