There may come a time as a small business owner where push comes to shove and your business will need a loan. This might come in darker times where an infusion of cash is needed to simply keep the business running but it can also come in times of prosperity.
There are plenty of small businesses that grow exponentially but need the capital to expand their businesses, hire staff, and implement infrastructure that will support the business’s growth as it continues to expand.
What Kind of Loans Are Available for Businesses?
There are a few different avenues that a small business can go down in order to secure the kind of funding that is necessary to aid that growth. There are unsecured loans, which do not require any kind of collateral to obtain but can lead to massive interest charges that can be very costly over time.
There are also short-term business loans. Because it can be difficult to meet the standards set forth by traditional bank lending criteria, a short-term business loan can be the solution to your issues. Generally speaking, the interest rates that are applied here can be more manageable based on your credit score or they can be quite a bit higher because the term is much shorter.
How Can a Short-Term Business Loan Help?
With the right short-term business loan from a reputable lender, you can limit the interest rates to around 10% to 15% if your credit score is on the appropriate scale. Ideally, it is meant for the aforementioned growth of a company or for those who are looking to open a business and need start-up capital.
There are some loans that your business could be committed to paying back over decades; a short-term loan is generally around five years or less but can be a bit longer depending on the lender and your credit score.
What is also helpful with a short-term business loan is that you can deal directly with the lender themselves; this can help your business save some time and money, which is always a good thing, especially when your small business needs all the money it can get.
Depending on the lender that you choose, there are a few noteworthy features that you could use. Both secured and unsecured options could be available with quick approval so that your business can get the money that it needs to either get off the ground or to handle the growth that you have been hoping for.
It takes money to make money, as the old saying goes, and the right lender can help you get the money that you need to get your business moving in the right direction.