The 4 Types of Short Term Loans Every Business Owner Should Know
Short term loans are often vital for the success of business owners around the world. Businesses are in constant need of cash and while some are lucky to have a seemingly endless supply of cash available to them, many do not. However, most business owners don’t want a long term loan hanging over their heads especially in this day and age when the economy isn’t at its best. Short term loans are the more common option and there are lots of loans to consider as well. However, the following are four types of short term loans you need to know as a business owner.
Go To a Short Term Loan Lender for a Small Loan
If you’re issues are that you only need a few hundred dollars to get you through to next month then you might be best suited to short term loans. There are lots of types of short term loans but a back to basic loan from a regular lender can be a viable option. With these loans you can get a loan between a few hundred and thousand dollars and then within a matter of say four weeks to twelve weeks you can repay. Depending on the amount you borrow the payoff time can be increased.
You might not have heard of invoice financing and yet it’s really a common type of short term loan for businesses today. Essentially while you are waiting for an invoice to be paid to you, you can find your business a little short and that can cause the daily running of the business to slow down or even come to a complete halt. You don’t want this but with invoice funding you can go to a short term loan lender and borrow potentially ninety percent of the total cost on the invoice. When you are paid the outstanding loan is paid. It’s really a simple loan. More details.
A Business Credit Card
Lines of credit are useful and they are essentially a short term loan albeit in a card form. How it works here is that you have a line of credit say from a retailer to purchase your stock and when you sell that stock you will repay the retailer. If you have a business credit card you charge money onto that card and you will repay the amount borrowed at the end of the month or over the course of several months. With any short term loans there will be some interest attached but usually not at an extremely high rate so it’s more manageable.
A Merchant Cash Advance
Some people think cash advances aren’t loans but if you actually think about it they are! Cash advances are offering you the cash up front so that when you need it its available, it’s a loan plain and simple. This can be a great short term loan option and there are many good lenders to choose from as well. When you’re looking for a short term loan lender why not think about a merchant cash advance, it’s a smart option.
Know What Financial Options Are Available
Far too many business owners aren’t aware of what financial options are available and when the time calls for them they fail to choose a suitable avenue. It’s easily done and something which more and more people are doing on a daily basis. The trouble is that if you don’t know what financial options are available you don’t know where to start. It’s important to know what Short term loans routes are available so that when the time comes you can know what to look into.
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