Your small business needs working capital, and it can’t afford to wait.
If you were a successful Fortune 500 enterprise, you’d have no trouble securing the cash you need. However, you’re still getting your feet wet and haven’t made a name for yourself yet.
Can short term credit be the answer to your problems?
This kind of debt financing can help get you through a rough patch and continue to thrive. Today, we’re taking a look at nine benefits that it offers.
Ready to learn more? Let’s dive in.
1. Ride Seasonal Waves
Even if you don’t operate a seasonal business, almost every company has a time of year when it thrives and another when business is slower-paced. When sales move from healthy to hungry, your working capital can take a major hit.
Short term credit loans can help you keep the lights on while also allowing your business to grow despite a few months of decline.
2. Enables Expansion
After a while, you might find that your small business took off and is doing well. Now, it’s time to expand.
You’ve already budgeted for this move, but the reality is that most major transitions are more expensive than you expect. You could even lose business if your store closes during the expansion.
In this case, a short term credit card can help you reduce the stress of moving and spur the process along without financial burden.
3. Helps During Emergencies
No one plans on an emergency, but one can strike at any time. Are you prepared if your business loses a valuable employee, experiences an equipment failure, or is struck by a natural disaster?
When the unexpected hits, short term credit can get you through.
4. No Long-Term Debt
When every penny is important, why accrue more debt than you have to? Most of the time, short term credit is the only main source of debt financing that a small business will need.
While banks and other traditional lending institutions will often try to offer loans with longer and more complicated terms, this is a way to get your money quicker with fewer strings attached.
5. Customizable Plans
Today, there are many alternative financing providers, including online lenders, that offer flexible lending terms. Some might provide smaller amounts in exchange for shorter repayment schedules while others will offer various types of financing.
Business owners don’t have to select a cookie-cutter plan. Rather, they can work with these lenders to choose the option that fits their unique business needs.
6. Less Emphasis on Credit Score
If you’re looking to secure a traditional long-term loan, you’ll need excellent credit to get the best rate.
On the other hand, short term credit lenders are able to more easily look past your credit score, taking other factors into consideration when determining your loan terms.
7. Improve Your Credit Rating
In a similar vein, as you make on-time repayments to your lender in full, you’ll work to improve your credit score.
If you ever need to take out a longer-term loan in the future or a secure a bigger line of credit, this good standing will help you do so.
8. Facilitate Cash Flow
Even when business is slow, you still have to pay supplier bills and necessary operational costs. If you don’t have the money to do so, you could rack up a sky-high credit card bill trying to fulfill all of your financial obligations on time.
Short term financing can get you through those dry spells until you’re back on your feet.
9. Apply in Your Pajamas
Because traditional banks aren’t as enthusiastic about lending to small businesses, you’ll find that most lenders that cater to this niche are online.
This works to your advantage, allowing you to shop around and explore your options. When you find a platform that fits, you can receive pre-approval in minutes and have your cash in only a few days. No red tape or jargon involved!
Find the Short Term Credit You Need to Grow
Your business might be small now, but it doesn’t have to stay that way.
Whether you want to expand your operations or just prepare for a slow winter season, short term credit can provide the cushion you need to not only survive but thrive.
Our simple lending platform makes applying for this kind of loan a breeze. Apply now and see if you qualify for a loan up to $500,000!