Most businesses require a loan at some stage of their development, whether it is to start up, expand, acquire another business or purchase a fixed asset. A short-term business loan can suit every stage in the growth of your business. A short-term business loan can help even out cash flow when your accounts payable schedule is shorter than your sales cycle.
A short-term business loan is a flexible, versatile and easy-to-use source of finance that allows you to invest large amounts into your business while controlling the effect this has on your cashflow. With a short-term business loan, there is no need to depend on other credit facilities, such as overdrafts, for working capital requirements.
There are slow times now and then in every business. In the retail industry, seasonal products must be ordered -- and paid for -- months before they will be sold. A short-term business loan allows you to make purchases that will appear as an asset on your balance sheet, and increase your company's asset base without having to put a dent in your cashflow. Short-term business loans can be a good way to raise working capital and cover accounts payable.
Short-term loans are appropriate for both new and existing businesses. When dealing with new businesses, some banks will grant only shorter-term loans, because short-term loans are less risky than loans with longer terms.
Short-term loans can have maturations of as little as 90-120 days or as long as one to three years, depending on the purpose of the loan. In general, banks require very specific repayment plans for their short-term loans.
Before a lender will grant a short-term loan, it will review your cash-flow history and payment track record. Most short-term loans are unsecured, meaning they do not require collateral. Rather, the bank relies on your personal credit history and credit score for approval.
Source:http://ezinearticles.com/?Short-Term-Business-Loan&id=228082
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3 comments:
i know a site that just offers best SBA Loans for Startup Business
Hmm… I'll have to keep this post in mind because I want to run my own business soon. I have a good amount of money saved, but I know I'll have to take out a loan at some point. I can use all the advice I can get. Lately I've been thinking about buying a business instead of starting one from scratch. Any suggestions? Advice? Thanks.
Jon --
I suggest checking out some other online websites. There's one called BizTrader.com, which is an online global marketplace where you can buy or sell a business. You can also use it to find a lender, broker, accountant, etc. It's a good place for entrepreneurs to find businesses and resources.
Then there are always local small business groups, like the Chamber of Commerce, which can also be very helpful.
Good luck!
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