For every business, there are times when quick access to quick cash is critical.
Picture these scenarios: You run a busy restaurant and your walk-in cooler just died. Or the warm weather is coming up and you need to hire servers for the patio. But you don’t have the cash to fix cooler or hire the workers. In both cases, a short-term business loan can help. You get the money you need in 24 hours and repay it over a short period of time – usually anywhere from 3 months to 18 months.
In contrast, long-term business loans are typically much larger and have a repayment period of five to 15 years or longer, making them better suited to a real estate purchase, a business acquisition or major equipment purchases.
A traditional small business loan from the bank can be a good option in specific circumstances but the long application process – up to 6 weeks – for a bank loan can a non-starter when you need the cash for more immediate business needs. When unexpected expenses, or opportunities, require fast access to funding, your bank is not always the most suitable choice.
Fortunately a quick answer to your loan application is available online. Online lenders, like Company Capital can have a decision and funding in as fast as one business day.
Business owners don’t have time to spend searching and applying for a loan, therefore a quick answer and fast funding is increasingly important.
Short-term business loans typically come in smaller amounts ($5,000 to $100,000), carry repayment terms of a few months to a year or two, have less stringent qualifications and can provide quick cash – usually 1-2 days – at a much-needed time. However, short-term business loans generally have higher borrowing costs — something to keep in mind when you’re shopping around.
There are several situations when a short-term business loan may be appropriate for your small business. Here’s the top three:
To manage cash flow gaps: Uneven cash flow is a common issue for seasonal businesses. Instead of running up expensive credit card debt or taking out a home equity loan to pay the bills, a short-term business loan or line of credit can help manage the slowdown.
For emergencies: What if your clothing store doesn’t have the cash in the bank to fix the broken register? What if you run a pizzeria and your only oven breaks down? Short-term business loans make sense in these types of emergencies. You can get quick cash for repairs, then repay the loan over a short time period — that way, you’re not still paying for a cash register or oven five years from now.
To buy inventory: To keep up with growing customer demand, you may need to buy more inventory. Or perhaps you have the opportunity to buy inventory at a discount from suppliers — but only if you buy it now. A short-term business loan could be your best bet, as long as you’re certain you’ll be able to sell the inventory to cover the costs of the loan.
A Fast Business Loan from Company Capital
Traditional banks often require collateral before approving your business for a loan. They also can rely heavily on the business owner’s personal credit. Company Capital offers unsecured short term business loans based on the sales history of your business rather than your personal credit history. With loans from $5000 – $100,000 you can apply for a Company Capital business loan or line of credit in less than 5 minutes. If you’re approved, you can have your funds in as fast as one business day.