A short-term loan business loan is a type of financing that requires repayment in a short period of time. Is this the type of business funding you’re looking for? If yes, let’s go on.
Short Term Loan for Your Business
As the name already says, this is a business loan that you should pay back in a short period of time. It’s like a traditional installment loan but comes with a shorter-term repayment period and a different method for the calculation of fees.
Traditional installment loans require the borrower to pay an interest rate. As for a short-term business loan, it doesn’t use any interest rates. In this case, there is a flat fee or a factor rate. When it comes to interest rates and fees, a short-term loan comes with a fee added once.
Let’s go through some specifics of a short term business loan:
- You can apply for amounts ranging from $2.5K to 250K, and a larger amount is possible with a secured loan.
- Great for various financial needs, especially for new equipment purchases, cash flow management, business expansion, stock purchases, short-term project financing, expensive debt repayment, and a new business opportunity capitalization.
Short Term Business Loans
As it often happens, you may need access to quick financing at some point. After all, any business can face an emergency, a new business opportunity, or a seasonally slow period. Be aware that short-term financing can be structured as a line of credit, invoice financing, or a merchant cash advance (MCA).
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Short Term Business Loan: What It Is
You can compare a short-term business with a traditional installment loan: they aren’t that much different. In the case of a short-term loan, the borrower receives a set amount of money that he/she has to repay, with interest, at regular intervals.
Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously, and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.