Everyone knows that taking out short term loans can be a great way to survive until payday, but it is less well known that businesses may be able to apply for short term loans, as well. Just as a payday loan can save the day for individuals who need a cash advance shortly before their pay is due to arrive but who have no chance of getting a bank loan, there are loan alternatives for small business owners, as well. As a matter of fact, most small businesses will need financing at some point or another. The burning questions are, exactly when the right time to apply for a loan is and which lender should be used.
Small businesses are the backbones of society, but it can be tough to make a go of it. However, with a clear business plan, a clear head, and a lot of hard work, it really is possible to be a successful entrepreneur. There are times, however, when a small business needs more capital than they have at the ready, and not being a larger business can make finding solid investors or viable long term loans difficult. This is where short term small business loans come in.
Banks do grant small business loans at times, although they can take a bit of time to negotiate. Still, once the oceans of application procedures have been navigated, getting an approval isn’t a sure thing. With short term loans for the small business, there is a little less paddling and a lot more hope for success.
Long Term versus Short Term: Different Payment Options
You see, short term lenders understand that sometimes an unconventional arrangement is needed. You may find a lender who is willing to accept repayment in the form of credit and debit card purchase percentages. This means that for every credit or debit transaction made at your business, your lender will automatically receive a set percentage until your loan is repaid in full. There are also companies who allow small daily payments instead of once monthly mega-payments. There are tons of other ways that short term loan lenders work with the business owner, as well.
Loan Amounts and Processing Times
In addition to the different repayment methods, getting a short term loan through a business other than a traditional bank is often far quicker. Quite literally, there are companies that will lend up to £50,000 and have it to you within 24 hours. Others lend up to £1 million within 10 days. You can’t beat that turnaround at a bank where it could take 90 days just to sort out your application.
No doubt, there is a place for long term loans. However, you may not be in that place currently. If you need cash quickly, you need to look into short term loans. If you need a non-traditional payment plan, short term loans are a good choice. Using this money for renovations, bulk inventory, or marketing are all excellent ways to expand your business.