For unexpected expenses, seasonal changes, or servicing inventory demands, one of StreetShares’ short-term business loans could be the best option for you.
Short-term business loans are an alternative to traditional 5-10 year bank or SBA-backed loans. They are designed to be paid off quickly, from within a few months to a few years. They are a great option for small businesses that have established cash-flow, but may not be big enough to get a bank loan yet. Short-term loans are also perfect for temporary or unexpected needs, such as gaps in cash flow, equipment purchase or repair, or seasonal payroll or inventory expenses.
Short-term loans usually require less paperwork and get approval and funding faster than long-term bank loans. This makes them a great solution when speed is of the essence. They are generally unsecured loans, which are underwritten by your business’ cash flow rather than collateral, so your personal assets will not be at risk. And because the repayment time is shorter, your credit will not be tied up in repaying a loan for the next 5-10 years.
You will have to prove your ability to pay back the loan with documentation such as bank statements and tax documents. Your credit score will also often be taken into consideration. These factors will determine your short-term business loan rate and amount. Once approved, you and your lender will agree on a repayment schedule.
Even though approval and funding can be faster with short-term loans, the best time to get a small business loan is before your business needs it. That way, you’ll be able to do your research, make a funding decision confidently, and get the best interest rates on one of your short-term business loans.
A business loan calculator is an excellent tool that you can use to figure out how much money your business needs, and then calculate the interest rate on that business loan. Loan calculators typically follow a simple formula, “to borrow__x__ over an __x__ year term your monthly payment will be __x__ at an interest rate of__x__”. Using this type of tool will give you an accurate idea of the total cost of the loan amount and how long it will take to pay off.
StreetShares provides the best options for getting the cash you need when you need it most through our collateral-free lending options.
Learn more about other simple collateral-backed funding solutions that enable small and medium-size companies to secure funding quickly and easily.
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