When to Consider Short-term Business Loans

Companies may consider short-term business loans for a variety of circumstances:

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• Funds needed for a specific investment

• Businesses may need new financing to start a new project or expand.

• A large purchase 

• Companies may rely on credit cards to make purchases, but that won’t always work. A short-term business loan may come in handy if a large purchase can’t be covered by a credit card.

• A matter is time-sensitive

• Coming up with a quick solution like a short-term business loan can be the difference between closing down and getting ahead of the competition. Time is money and a short-term loan can be obtained in as little as one day.

• The business is experiencing a growth period

• If a business is confident that taking on debt will allow it to bring in more revenue and pay back a short-term business loan quickly, then it could be a terrific solution.

• The business is cyclical

• A short-term business loan can bridge cash flow gaps for seasonal companies.

• Short-term operational expenses

• If a business needs to hire extra workers during a holiday season or must obtain a certain piece of equipment to cover an order, then a short-term business loan can get the job completed.

• Cash flow issue

• When a business is low on cash reserves but can depend on money coming in shortly, then it can leverage a short-term business loan to stay afloat and operate as usual.

• Emergency repairs 

• Regardless of how much a business plans ahead, there will always be surprises that arise. Whether it's damage to a business’s office or malfunctioning equipment, a business can obtain cash to cover an emergency.

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Overall, a short-term business loan is a terrific option, especially for new and small businesses that won’t qualify for traditional financing and need cash fast.