What is a short-term loan?
All businesses, regardless of the stage, need to make sure their cash flow remains positive and they have the working capital needs to succeed.
Short-term business loans are designed for businesses who have short-term financing needs. This could be for the purpose of smoothing out their cash flow, taking advantage of a new opportunity, or dealing with a surprise.
Instead of having to take valuable working capital from other parts of your business, you can get the capital you need to cover your costs using a short-term business loan.
Is a short-term loan right for my business?
Short-term business loans are great during a time of growth, fluctuating cash flows, or when you need to make a purchase in preparation for a peak season. If you are making an investment in your business that will allow you to pay back your loan within a short amount of time (typically under 2 years), then a short-term loan could be a good solution.
Common scenarios we see short-term business loans helping business owners include:
- Temporary operation related expenses – If you want to hire temporary employees during your peak seasons or to complete a project, a short-term business loan could help.
- Bridging cash flow – If you don’t have enough working capital right now but anticipate more money coming in soon, a short-term business loan can help you bridge the gap and focus on running your business instead of worrying about your finances.
- Surprises – All business owners run into surprises every now and then. Whether it is a piece of equipment breaking or an opportunity to get bulk pricing on inventory, you can use a short-term business loan to quickly get the funding you need and focus on taking your business forward.
How can I get a short-term business loan?
A line of credit from a bank is often the first choice for business owners; however, many banks are conservative and make business owners jump through a lot of hoops just to see if they’ll get approved. This often prevents businesses from quickly taking advantage of an opportunity or getting funding when they actually need.
If you have access to a business credit line it is best to use it. However, for those who don’t have a line of credit or can’t get more from their bank, an online lender such as Lendified may be a good fit for you. Lendified offers short term business loans through a simple and easy online process. You can get a free quote in minutes and funding in as fast as 48 hours.
Ready to get a quote now? Click here for a free quote from Lendified.
Wondering where you can get a short-term business loan? Or what other type of solutions are available for your business? Check out our Ultimate Guide to Small Business Loans to learn more!