While large long-term loans may be preferable due to lower interest rates, at times a small short term business loan is just what the doctor ordered. Start ups might only qualify for these shorter funding options until they can build up their cash flow, history and credit score. You might want to raise cash quickly due to an emergency, property being available or special inventory deal. You could also use a short term bridge loan before an “initial public offering” (IPO). In addition, short term finance can be used to correct simple miscalculations by business owners. These types of loans can vary; examples include family, merchant cash advance, leaseback, invoice factoring, crowdfunding and other types of alternative lending. If you are interested in getting financing for your business, Halo Capital can provide you with fast, short term funding solutions with minimal documentation and competitive rates. Fill out the form on the right to apply and a representative will contact you to discuss your options.
Small Business Short Term Loans
Since 2008, traditional banks have made it more difficult to qualify for long-term commercial loans. They have added paperwork and usually require a good credit score, at least two years in operation, solid cash flow and collateral. The average traditional long term commercial loan may be anywhere between 5 to 10 years representing a more substantial relationship between the business and bank. But, some businesses don’t have the time to go through a long bank application process. Modern business must be conducted in real-time. If you fail to stock the latest gaming system or bounce a payroll check, your customers or employees might be headed for the exit doors fairly quickly. Typically, the banking sector considers short term cash to consist of funding for 3 to 24 months. Small business short term loans may be better for fast growth, cash-rich industries. They can also be used to fill gaps between funding rounds. A business owner may prefer to get finance in monthly installments rather than years. A short term small business loan offers this kind of flexibility. Short term sources of finance can have higher approval ratings too. Our short term business financing processing center can provide quick cash within days, depending on your business profile.
Short Term Business Loan Rates
Generally, short term loan rates will be higher than long term rates. The sources of business finance have a longer time to recover their money with commercial loans. In addition, short term loans for business tend to be more risky. Short term business lenders want a quick profit. Payday quick loans work on the same principal as short term sources of business finance. Research your options to find the best terms and interest rates available. If you are having trouble calculating future payments, you can use a loan calculator to determine the principal and rate for short term commercial loans.
Who Benefits From Short Term Business Funding?
Do you know why more than one-third of small businesses use credit cards for funding? Credit cards are easy-to-use. Short term funding for small business have a similar allure; they too are easy due to credit rating bureau services. This type of financing usually involves smaller dollar amounts, but can be just as important. Seasonal industries – like wedding planners, snowmobile sales or delivery companies – benefit tremendously from small short term business loans. A short term loan might also be ideal for retail store that need to prepare for an increased volume on Black Friday.
Short Term Business Loans for Bad Credit
Realistically, some traditional banks are simply not lending to small firms with bad credit. Statistics show that there are fewer short term unsecured business loans available than in years past. Companies with bad credit still need working capital. These types of financing solutions provide the capital for small businesses to add inventory, staff and warehouse space rapidly, regardless of their credit score. Unsecured loans may be available with no credit check, especially if your business has shown success in other areas.
Other Options Available
Online funding and “crowdfunding” peer-to-peer (P2P) might provide you with money within as little as two weeks. In addition, Small Business Administration (SBA) loans are available for most states, including New York, California, Texas, Florida and Arizona. There are many SBA programs targeting certain groups, including micro loan scenarios.
Modern business is fast-paced and every company can benefits from alternative short term funding sources. Talk with a Halo Capital Group professional today and discuss your needs for short term business financing. Fill out the form and a representative will contact you.
For more info about our our mezzanine financing solutions, see this page.