A key component to running a business is ensuring you have the funding to keep all operations up and running consistently. Unfortunately, for just about every company, there comes a time when this proves to be more challenging than anticipated. New companies typically rely on revenue and reserve cash to fuel growth and development. When you are in a high growth mode, there may be pressure on your cash flow.  If and when you find yourself in a situation where your business could benefit from a little extra money in your bank account, you are not alone. There are great options available to you, like quick short-term business loans.

What is a Quick Short Term Business Loan?

Maintaining or building adequate cash flow is a challenge that causes many businesses to fail. Lucky for you, you’re learning one of the critical secrets to continued growth during slower times—quick short-term business loans. A short-term business loan provides you with a lump sum of money to use at your discretion. You will make regular payments to your lender and will usually have between 3 months and 12 months to repay the loan.  For newer businesses, your payment options are daily or weekly.  Much of this is due to months in business.  Once your company is at least two to three years old, online business lenders and other financial institutions will consider weekly payments or perhaps monthly payments.

With a short-term business loan, your personal credit score and assets will not necessarily be exclusive factors in whether you qualify. Your time in business, industry, cash flow and average daily bank balances will impact the loan amount, loan cost, and loan term.  The companies with annual revenues above $100,000 and the owners’ minimum credit score above 500 offer the most financing options. The stronger the financial picture, the easier it is to secure a short term business loan.

For those business owners with minimum credit scores or bad credit, the good news is that these short term business loans do not report to the personal credit bureaus.  The business credit bureaus get notified, and this means you will have an opportunity to build business credit for your company.  Once you establish a good business financial history, it is much easier to secure commercial loans with better rates and terms.

Fortunately, you will likely be able to qualify for a short-term loan even if your business has little to no credit history. And most importantly, if you use a short-term business loan to finance your business, you won’t have to use your personal accounts or acquire debt in your name.  This benefit is why loans for business is always a better option than a personal loan.

Do Banks Give Short Term Loans?

Most banks, credit unions, and traditional lenders do not offer short term business loans.  The cost to originate both the short term loans and those commercial loans under $500,000 make it prohibitively expensive.  Moreover, the banks do not want to service loans that range in time from a few months to a year.  Typically, the funding time for a bank to approve and originate a loan is between several weeks to several months.  If, in your hunt for capital, you are looking for bad credit business loans from the bank, forget about it.  You can also forget about startup business loans.  So, when it comes to short term or fast cash, the bank is not the place to go.

What is Short Term Financing?

Short term loans are relatively common in the business world. As your business grows and acquires the resources to sustain itself, you become more and more independent from outside assistance, but how do you get there? Quick short-term business loans provide you with temporary funding for projects, staffing, advertising, expansion, taxes, insurance, equipment, or building inventory. For example, if you need to stock seasonal items you don’t otherwise carry, or hire additional personnel for the holidays, you can use a short-term loan to fund these needs and pay it off quickly.

Why Would I Need a Quick Short-Term Business Loan?

In today’s world, business moves quickly.  You never know when you’ll run into that unexpected challenge or opportunity.  Success hinges on the precipice and short term financing options can make or break your dream.  Perhaps you can buy inventory at a deep discount, and your time to funding is critical in acquiring the discounts.  Maybe your client needs another week to pay their invoice.  The challenge is you need to make payroll this Friday.  This ability to fund quickly is the reason the short term business loan becomes the perfect loan option

The shortterm small business loan is fast funding.  Many online lenders can fund the same day or within twenty-four hours.  The loan amounts can range from $10,000 to $250,000.

Benefits of Short-Term Loans

In addition to the easy acquisition of short-term capital for your business, there are extensive perks associated with quick short-term business loans. Check out some of the ways you and your company can benefit from this type of loan.

  • The online application process is simple and filled out online.

The loan payment deducted automatically from your business bank account

  • You will not be required to use your assets or put up collateral.
  • You will have a set daily or weekly fixed payment amount.
  • There is a lot less paperwork than you might have with a traditional loan.
  • You can receive funds quickly, sometimes in as little as two business days.
  • Qualification for Short-term loans is easy.
  • It works for a variety of business needs—virtually anything you want.
  • Your personal credit will not be affected.
  • We report to your business credit, so prompt payments help you to build a good credit score for your business accounts.
  • It enables you to fund your business needs without dipping into personal accounts.
  • Because you can use the money to support any part of your business, it facilitates and expedites company growth and development.

Usually, no-prepayment penalties, and there can be early payoff discounts.

What is the Interest Rate on Short Term Loans?

Contrary to common sense, the annual percentage rate on a business term loan tends to be higher on these loans than a longer-term loan or what you may consider being a working capital loan. It’s less to with loan type and more to do with risk.  You will also find the loans priced with a factor rate, which is similar to the merchant cash advance.  The business loan cost is a factor in deciding whether this business finance option is an excellent choice for your company. Don’t be surprised if there is also an origination fee of one to 2 points.  This fee will add another $10 – $20 per $100 you borrow. That’s why getting an estimated APR is challenging.  Remember that shortterm financing can be expensive.  On the flip side, you usually do not put up a traditional personal guarantee, nor do you need to post collateral or assets.

What Do I Need to Qualify for a Short-Term Business Loan?

The qualifications for obtaining a quick short-term business loan may be more within your reach than you think. Once you have completed the one-page application process and been pre-approved, you will need to provide a valid driver’s license, a voided business check, and proof of ownership for the business for which you are using the loan. You may also be asked to show financial statements from your company for more significant dollar amounts over $100K.

Where Can I Get a Quick Short-Term Business Loan?

When looking for quick short-term business loans, it is a good idea to find a company that fits you and your specific needs. It is also helpful to work with a lender who is familiar with new or small business operations so that they can help keep you heading in the right direction. Another useful strategy is to check reviews or ask business colleagues for recommendations. You want to be sure you choose a company you can trust.  Business funding is somewhat of a commodity, and it’s a buyer’s market.  The approval rate is generally higher with online lenders as their pre-requisites are more liberal and forgiving than the banks.  Poor credit is OK, especially with the short term loan.

SunWise Capital

SunWise Capital is an excellent option for quick short-term business loans because we have experience working with thousands of companies to reach their financial goals. Our executive staff members have all been small business owners at some point, so we understand the way your business works, and which types of loans will help you succeed. We also customize each loan with specific details to fit each client and their business perfectly. Plus, our rates are incredibly competitive.

SunWise Capital focuses on getting you approved for the loan you need, so your business can grow and succeed. Because of this, our minimum qualifications for quick short-term loans are less than those of banks.

Take Your Business Further With A Loan From Sunwise Capital