Short term business loans can provide a business with a much needed cash flow boost. Best of all, short term business loans from non-bank lenders are often far easier to secure and the turn around time is much faster than which can be achieved with the big banks.
The Main Benefits of Short Term Business Loans:
Loans from $5k to $5 Million+
flexible repayment options
Loan terms 3 to 12-Months
perfect for short-term cash flow
Fast 24-Hour Loan Approval
loan approval are fast
Minimal docs required
no need for full financials
The top 3 Types of
Short Term Business Loans
As a business owner there can be numerous reason short term cash flow may be required. There are a number of different short term business loan options available and it’s worth reviewing the key features to ensure you pick the solution that proves the best fit for your business.
An unsecured business loan can be a fantastic short term finance solution for business. With loan terms typically spanning between 3 to 12-months and a fast application process they prove to be a fast and effective solution to short term cash flow requirements.
A business line of credit facility is extremely flexible and can prove a good fit for businesses with irregular or unpredictable cash flow. With a line of credit you only pay interest on the balance you use and can access funds fast as they are required.
Invoice financing is a line of credit that puts cash flow back into your business by getting a third party (financier) to pay your outstanding invoices immediately. Essentially you’re selling your invoices at a discounted rate to a third party. Similar to a tradtional line of credit, you only pay interest on the balance utlised and have funds available to you at a moments notice.
|Loan Type||Benefits & Suitability|
|Unsecured Business Loan||Facility term 3 – 12 months|
Any business purpose
Top-up & early payout options
An unsecured business loan is typically repaid over an agreed period (up to 12-months). These types of loans are usually to fund a specific business task, project or for general cash flow. With this type of loan you know exactly what the repayment commitments will be and can budget accordingly.
|Business Line of Credit||Facility term 12 months (Revolving)|
Typically used as a cash-flow facility
Line of credit with no line fees
An business line of credit helps to keep the cost associated with the lending facility low. A line of credit is a flexible form of short term finance which only incurs interest on the amount which is drawn upon.
|Invoice Financing||Facility term 12 months (Revolving)|
Can be more affordable as you are securing the loan against your outstanding assets.
Invoice Finance (otherwise known as Factoring) allows a business to leverage the capital tied up in the invoices they have outstanding (Accounts receivable)
How do I apply
for a Short Term Business Loan?
There are a number of short term business loan options from non-bank lenders. The advantage of securing a business loan via a non-bank lender is the application and approval provess is normally much faster.
Determine the amount you wish to borrow
only borrow what you need
Prepare any questions you have for the lender
best to come prepared!
Place your initial application online
you only need the basics
Think about what loan term will suit your needs
up to 60 for equipment