Short term business loans can aid a small business’ operations, helping business owners with a broad range of business financing options to combat cash flow and growth challenges.
Financing allows your business to take advantage of expansion opportunities and marketing initiatives to increase market share.
Short-Term Business Financing 101 Jump To:
- What are Short Term Business Loans?
- How Short Can Business Loan Terms Be?
- How Do Short-Term Business Loans Work?
- Do You Qualify for Short-Term Business Loans?
- What Companies Utilize Short-Term Business Loans?
- How to Get Short-Term Business Loans
What are Short Term Business Loans?
These are short term loans that can help finance temporary working capital needs.
Each type of short term business loan is unique, specializing in helping accomplish virtually any industry-specific business goal.
Small business loans with short terms are often the financing options with the lowest cost of capital overall.
By borrowing only a small amount of capital for temporary use, business owners never have to worry about overborrowing or overpaying. With short-term financing, you ensure that you’re only responsible for the funds you need to accomplish a specific goal.
For those that wish bigger small business loans with longer terms, there are many options specialized for accomplishing much larger goals.
How Short Can Business Loan Terms Be?
There are small business loans available with term lengths as short as 6 months. These include:
- Small business loans with both “flexible” and “set” rates and terms,
- Business lines of credit,
- merchant cash advances,
- And startup business loans.
Of course, long-term versions of each of these financing options exist, with the longest term lengths maxing out at about 10 years.
How Do Short Term Business Loans Work?
- Business owners get their business financials in order. Through NBC, this typically only means your business’s last 6 months of bank statements.
- Apply online, or call a Business Financing Advisor (BFA) to tell them which short term business loan is best for your company’s needs, and what kinds of terms you’re looking for.
- A BFA will match your application to the perfect few lenders in the global marketplace.
- You will then compare your offers with your BFA to decide which one would best match your needs.
- Depending on the financing option you applied for, you may or may not need to offer some assets as collateral. Note: If you’re against leveraging your assets, tell your BFA. There are many unsecured short term business loans available that do not require any collateral.
- Receive short term funding in as little as 24 hours after applying.
- Start using your borrowed funds for any business need.
- Depending on the type of short term financing you apply for, you will need to pay off your funds borrowed in different ways. Some offer flexible payment options that let you pay off your funds with fixed interest rates, in fixed intervals. Other short term loans let you pay off borrowed capital with greater flexibility, which for some results in a more convenient and comfortable payment routine.
Do You Qualify for Short Term Business Loans?
If you make $100K in gross annual sales, and have been in business for at least 6 months, then you qualify for most short-term business loan options.
That’s right-no FICO minimum required! There are many short term business loans for bad credit borrowers available.
Here are a few types of short term business financing options you qualify for by meeting the gross sales and time in business minimums alone:
- Small Business Loans
- Business Lines of Credit
- Short Term Business Loans Bad Credit
- Equipment Financing
- Accounts Receivable Line of Credit
- Purchase Order Financing
- Merchant Cash Advance
What Companies Utilize Short Term Business Loans?
Seasonal businesses, businesses that regularly wait on credit customers to pay their bills, and retail businesses with increased inventory needs at specific times of the year are prime candidates for these loans.
Small businesses typically seek these loans to increase cash-flow to aid growth, support existing business, maintain or purchase new equipment or fixtures or furniture, or aid debt refinancing.
How to Get Short Term Business Loans
Businesses that would like to acquire short term business loans should speak to one of National Business Capital’s Business Consultants.
The paperwork for a short term business loan is minimal compared to a traditional bank and the process is fast. National Business Capital typically provides access to funds in as little as 24 hours.
Short term business loans can provide seamless transitions, increased cash-flow and the ability to expand without requiring a long term commitment.
National Business Capital’s 90% approval rate, 1-minute application and experienced professionals make acquiring a short term small business loan a fast and easy experience.
For more information on our fast, flexible and dependable services on short term business loans, please call (877) 482-3008. To apply now using our quick and easy credit form, click the link below!