Small Business Loan

Short Term Business Loans Guide: Learn About Term Loans, Invoice Financing, Vendor Credit, & More

Speed is very important when it comes to business financing. No matter how much you try to plan, businesses of all sizes and types often experience surprises. The ability to get funding ASAP can literally mean the difference of keeping your business going or shutting the doors. Even if you don’t need it right now, there may very well come a time when you need short term business loans.

Luckily, there are a few options, such as term loans. These are similar to the traditional bank loans but have a shorter repayment term. Your best bet is to try and get this type of funding from an online lender that operates differently than a standard brick and mortar bank. The rates on term loans can literally range from 8% to around 90%+. You’ll obviously want to consider looking into other options if your credit isn’t good enough to qualify for a lower interest.

If you work with vendors / suppliers, find out if you can get short term business loans from them. This way you will be able to get a better handle on your cash flow. You might have to work out an arrangement with them, where you are given a period of time (30 – 60 days) to pay for a service or product they provide instead of paying cash on delivery. Interest might not even be involved if you are able to pay what you owe by the agreed-upon due date. Vendor credit can be a good option as it gives you the opportunity and some time to convert the costs into sales to your customers or clients.

Short Term Business Loans’ Repayment Terms

Lines of credit are very common in the business world. While lines of credits usually involve long repayment terms, you might be able to qualify for a setup for short-term solution if that would be preferable. The interest rate can range significantly, just as a term loan, and the shot-term lines of credits – unfortunately – tend to be on the higher end of the interest spectrum.

Should you ever have a problem with clients not paying invoices you sent, there is invoice financing. The lender in this type of scenario will give you a type of loan, and in return, that invoice will be used as collateral. You will then be required to repay both the debt AND the fees / interest when you finally receive payment from the customer.

These are just a few ideas on how to get fast financing if you ever need it. There are other types of short term business loans as well. A good place to start is with US Business Funding. A wide variety of business financing and funding solutions are available.

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