Short-Term Business Loans
As a business owner, there are times when you may need additional funds to help keep things running smoothly. Emergencies happen, ad campaigns need to get up and running, product needs ordered, and bills need to be paid. When you needs quick funds the number one solution is to acquire a loan.
However, banks have become stricter when it comes to offering loans to small businesses, not to mention their terms last 5 to 10 years. If you are looking for short-term business loans, the best way to find one has become seeking an online lender. It is important to know what to look for in a reputable lender, and to find the right lender for you based on your business.
The Benefits of Short-Term Loans
If your business needs some additional breathing room until your clients make their payments, a short-term loan can give you the funds you need. Typically, these loans are easier to apply for than a traditional bank loan. The approval rates are simply higher, and the criteria to qualify fewer.
Let’s say you need $10,000 to help expand your thriving storefront, and find yourself turning around merchandise in no time. Why take out a loan you can pay back in three months that will drag out payments and interest over the course of the next three years? It simply makes more sense to borrow money you can pay back quickly than focus on managing debt.
Some lenders require daily or weekly payments as opposed to the usual monthly payment schedule. This allows you to easily pay the loan back in smaller chunks, making budgeting a breeze. It also helps to boost your business credit in no time.
Where to Look
Online sites have made it easier than ever to compare lenders side by side. You will be able to view their pros and cons, APR rates, loan amounts, and more with just a few clicks of the mouse. These sites will also tell you what credit, revenue, and years in business requirements a lender may have.
To help get your search started, here a few to consider.
Kabbage is considered a peer-to-peer lender that will offer short-term loans to anyone who has been in business for one year and a revenue of $50,000. There is absolutely no application fee, and you can apply for a no-obligation loan. Their funds are made available to you within 24 to 48 hours, and they care more about your business’ performance than your credit score.
Their loan amounts range from $2,000 to $150,000, and their terms last from only 6 to 12 months. Businesses can expect APR rates between 24% and 99% depending on their credit score.
A great choice for newer business, Street Shares offer same day or next day funds when you need them. You will need a credit score of at least 600, but only need an annual revenue of $25,000. You will also need to be in business for at least one year and are not obligated to accept all of the approved funding.
Their loan amounts range between $2,000 and $100,000, but are capped off at 20% of your business’ annual revenue. With APR rates as low as 9% and loan terms as low as 3 months, they certainly satisfy the needs of small businesses.
Short-Term Business Loans
When your business needs immediate funds to help keep things running smoothly, avoid the long drawn out terms that banks offer. Instead, opt for a short-term loan that you will be able to pay back quickly, and focus on running your business instead of managing debt.