Small Business Loan

Short Term Business Finance Guide: Understanding Your Options and Picking the Right One

In a perfect world, your business will be financially prepared for any type of expense, and you will know that the funds are available should you need them. Unfortunately, this isn’t a perfect world and many business owners struggle to come up with the funds when they need it. Planning for the long-term is one thing, but what if something unexpected occurs and you find that you need a short term business finance ASAP?

The application process for a traditional loan can take several weeks. Trying to raise money through crowdfunding platforms can take awhile too – especially if your company is small and not very well-known.

If you have good credit and have been involved in business for at least 2+ years, there’s a good chance you will qualify for an online loan or line of credit. There are many online banks that offer an easy application process and a fast approval.

As for a line of credit, you can apply for business credit if your business credit history is good enough. If not, then consider getting a new personal credit card for business expenses. This might not be the best option, however, so think about it carefully.

Short Term Business Finance With Capital Loans

Sometimes short term business finance comes in the form of working capital loans. Your other assets and revenue will be protected if you have enough money for daily operations. This type of short-term loan can last from 1-month to 1-year.

Is a merchant cash advance the right kind of funding for your business? This is pretty easy to get, although it will cost more in interest than a regular bank loan. Essentially, it is an advance on your future earnings. You will receive a set sum of money upfront, and the lender will recoup the advance as well as interest by taking it out of your daily sales. How fast the lender will get everything (plus interest) back depends on your daily sales. There is usually no set deadline to repay this kind of “loan”.

If it’s equipment you’re after, then look into equipment financing options. This is precisely as it sounds. It’s the financing that any company requires in order to lease or buy equipment, either new or used. If you opt for a good online lender, there is no paperwork involved and you can get an approval and funds in as little as a single business day.

All of these short term business finance options and more can be found with the reliable US Business Funding company. The term and payment options are flexible, and the application process is usually quick.

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