Many of these loans can be applied for and received very quickly (same day in some cases), and there are many providers to choose from. You simply submit your application (usually online), business bank statements or other credit information. Then the company reviews it and gives you an offer of the terms of the loan including the amount, interest rates, fees and repayment schedule. If you agree, you sign the contract and get your money the same or next day, often in as little as 24 hours.
There are few guidelines on how the funds must be used. Regardless of whether the business is looking to fill a gap in its cash flow, capitalize on an exciting opportunity or pay off an emergency expense, a short-term business loan can provide the business with an easy and quick solution to obtain the financing it requires.
Since short-term business loans have a quick funding timeframe, they tend to have a higher interest rate than other financing options. If payments are paid on time whether it is on a daily, weekly or monthly basis, the business can boost its credit score so long as the lender selected reports good payment history to the credit agencies (Experian, Payment, Dun and Bradstreet).
This type of debt is a lot more lenient than a traditional bank loan when it comes to eligibility requirements. For example, it will be easier for business owners to qualify if they have a low credit score, shorter history of business or lower annual revenue.