Short-term business loans are a great choice for businesses in need of quick access to funds but without the commitment of having to repay a larger loan over potentially many years. Unlike a traditional business loan, a short-term business loan provides a company with a lump sum of money that is repaid to their lender over a much shorter period of time than other types of loans, typically from three to eighteen months.
Short-term business loans offer particular benefits to the likes of SMEs. All small businesses need a helping hand from time to time, whether it’s to grow the business or to tide the business over during a difficult financial time. A short-term business loan, when used correctly, can offer a world of advantages to SMEs. Here are just some of the reasons why a short-term business loan could be the right choice for your business.
Convenient Application Process
Most lenders will offer a quick and easy application process for short-term business loans; you can even apply online, making it the quickest and most convenient way to get access to a loan. Unlike a traditional bank loan, you don’t have to put together paperwork and schedule a meeting to get access to funds your business needs. You can start your search for a short-term business loan online from the comfort of your own home.
Obtain Funds Faster
Aside from the convenience of being able to apply for a loan online, an online application will also be processed quicker and, once approved, you could have the funds you need in your account within as little as twenty-four hours from when you submitted your application. This is great for SMEs in dire need of funding that can’t afford to wait around for days or weeks on end for a traditional bank loan to be approved. So, if you need to secure a time-sensitive, lucrative opportunity but don’t have the cash to do so, a short-term business loan could certainly be the right option for your business.
A lot of short-term business loans are offered on an unsecured basis, meaning they are not secured against the assets of the business owner or the business itself. This prevents the lender from seizing any assets if there is failure to repay the loan. Whilst this type of borrowing can come with the stipulation of increased interest rates on short-term business loans, it does make them a much less risky investment for SMEs who cannot afford to lose any of their business assets. This is why short-term business loans make such an appealing type of loan for SMEs, allowing them to borrow funds without the concern of having assets seized if they fail to make repayments.
Short-term business loans are much more flexible than traditional loans. They are much more customisable for the business borrowing; repayment terms, interest rates and repayment options can all be negotiated with the lender. Some lenders will allow businesses to repay their loan early with no fees or penalties, and some may not even require monthly instalments and will instead agree to take the payment in full at the end of the agreed loan term.
Despite the potential for higher interest rates, short-term business loans can be more cost-effective in the long run than other types of loans. Their shorter-term repayment schedule can produce a more cost-effective alternative to paying a lower interest rate on a loan that lasts for a substantially longer amount of time, meaning that, overall, less money is paid back in the form of interest rate.
Manage Your Business Capital
Whether you’re a brand new business or you’re hoping to expand your business to the next level, you will need capital to power your small business. Many businesses and business owners will not have this kind of cash to hand, which is where short-term business loans come in. Whether it’s to move to a larger premises, purchase equipment, expand to another location, perform renovations, buy inventory or hire new employees, the quick injection of cash a short-term business loan provides can be invested to cover almost anything, as well as necessary day-to-day expenses.
Potential for Improved Credit Score
Short-term business loans also have the advantage of being easier to obtain than traditional loans. There are fewer restrictions in place and lenders are more likely to hand out short-term loans, even to those with a poor credit score, which can also incur higher interest rates. However, if you pay back your loan in full and on time, you could potentially increase your business’ credit score, meaning that you are more likely to be approved for other types of loans in the future, should you need them.
Cash During Times of Uncertainty
Whatever industry your business belongs to, it is likely that there will be changes and fluctuations throughout the year. These ups and downs may be minor and not any cause for concern, but they may also have the potential to dramatically decrease your earnings and possibly sink the business completely if you do not have access to a source of funds. Unpredictable business emergencies can occur, potentially blindsiding you and creating a catastrophic impact on your business. A short-term business loan can be applied for in minutes, approved within twenty-four hours and used as a financial safety net during these difficult times.
Short-Term Business Loan with Ping Finance
Every growing business and SME is faced with different challenges when it comes to the shared goal of achieving a consistent, reliable cash flow. Short-term business loans are designed with flexibility in mind and can offer accessible working capital to help SMEs flourish. You can complete one simple application form with Ping Finance and submit your business details to multiple lenders in one easy click; we do the rest.
Our expert debt advisors will keep you updated throughout the entire process and send additional documentation direct to liaise with our lender to help get funds to your business account quicker than ever before. Let us know your business financial needs, and we will present you with a suitable range of options to choose from. Contact Ping Finance today and discover how we can help you secure a short-term business loan.