When someone says "small business loan", most people immediately think of an old-school bank business loan of seven to ten years. There certainly are some very big investments that borrowing a very large amount over a long period of time makes sense. For example when purchasing a new warehouse or acquiring a competitor can be an expensive exercise and you may wish to lower the monthly repayment by having a long term business loan with a bank.
But what can a business do if they need a smaller short term solution and they don't want to pay the interest that comes with a 10 year loan? As many small business owners have already found out, banks are not that interested in helping small businesses get small amount loans and their process is often slow and outdated.
Luckily there is an alternative to banks! We can find the perfect lender who can fund your short term business loan that will fit you needs perfectly. Many will even approve and pay-out your loan the same day.
What is a short term business loan?
The first thing to consider is what is the purpose of your loan. This will help you decide on the type of loan that might be most suitable in this instance. The most common purpose we see for short-term unsecured business loans is to obtain or increase the amount of working capital.
The second factor you should consider when deciding if a short term business loan might be right for is the industry you are in. For example, is your industry seasonal, if so it may be wise to have a short term loan where you front load the payments during your high cash flow season. Read more about the types of industry that most commonly take out short term business loans here.