For any new business or SME, capital is king when it comes to catalysing growth.
However, there’s often an unenviable cache-22 scenario in which businesses have a clear need to invest in staff and infrastructure but could put the financial security of the company at risk should immediate returns not be forthcoming.
This fear of loss is one of the leading contributing factors that can hold businesses back from quickly reaching their full potential. It’s perfectly reasonable for business owners to be financially cautious during the early stages of growth – in fact, it’s widely encouraged – but the great news is that there are plenty of alternative ways to finance essential upgrades and expansions without draining your working capital.
Short-term business finance is a great way for both fledgling and established businesses to take the next step in their respective evolutions, from property developers looking at bridging loans to import/export businesses that need a helping hand with goods purchases.
Let’s take a closer look at the short-term business loans that could benefit your growing empire.
What Short Term Loans are Available?
That’s right – there are far more options available than the standard loans that people often use for personal finance.
There’s a common misconception amongst those new to business credit that it’s simply a case of being loaned a lump sum which is paid back in monthly instalments. Whilst this has an element of truth to it, the reality is that there are a huge number of different credit options which can be tailored to suit the needs of each business.
At their heart, short-term loans are designed to be repaid within one to two years and offer businesses a flexible, accessible way to quickly borrow funds. Some of the most common uses for short-term business loans include, but are not limited to:
- Funding business premises
- Goods and stock purchases
- IT infrastructure
- Employee growth
- Equipment purchases
- Paying supplier invoices
- Purchasing new products
- Refinancing existing debts
The list goes on, but ultimately they can be used for almost any business purpose and are typically easier to apply for than more traditional, longer term loans. In terms of short term loans
Used mainly by developers and landlords, bridging finance is a short-term business loan that can be used to provide finance until a new or traditional mortgage can be sought.
Use acquisition finance to provide short-term funds that can be used to purchase a new business, additional shares or finance a management buyout.
Property development finance can be used to fund new build projects or extensive renovations with the intention of taking on a mortgage or selling the properties to repay the loan once completed. This is more aimed at those building entire estates, office blocks and major conversions.
One of the shortest-term loans is offered by way of invoice finance. Take an immediate advance on your outstanding customer invoices and repay the advance once your client settles the balance.
Fund any part of your industry supply chain by using trade finance to pay your suppliers. This short-term business loan is repaid in full when the goods are sold on.
Short Term Business Loans
Very much along the lines of standard personal loans, short-term business loans provide businesses with an injection of working capital that is repaid over a pre-agreed number of months or years.
Simple Loan Application and Management
With the vast majority of loans now applied for, issued and managed online, you can avoid the inconveniences of waiting weeks to see the bank along with lengthy application forms and stringent repayment terms.
Instead, we’ll build the bridge between you and potential lenders, all under one roof to ensure that you pick up the very best short-term business loan for your company, saving thousands of pounds by securing a competitive rate over a term that makes payments affordable.
You’ll be able to make payments online and track the progress of your loan. Register today with Ping Finance for a free, no-obligation service to ensure that your business reaches its maximum potential.