Business loans. What kind of associations do you make when you think of them? Five years, ten years of contract, or one that you feel like you’re going to be paying back for as long as you live. What would a short term business loan mean for you?
These are loans that last from three months to about 24 months. They’re more flexible, and less daunting for the long run of your business. Focusing on specific loan type and customizing them to what best fits your business needs can help move your business forward.
Why Should You Consider a Short Term Business Loan?
Business loans are most popularly used to purchase inventory or purchase equipment. Both of these purchases are dollar cost sensitive. And the businesses are expecting a large return on the dollar cost of the loans. Here’s why you should consider a short term business loan for your business needs.
Narrow the Cash Flow Gap.
If your business is seasonal, short term business loans make a lot of sense for you. During the off season, you may find yourself accruing expenses you’ll be able to pay off in the busy season. A short term business loan is the solution, where you know in just a few short months you’ll be able to turn around and pay that loan back.
If your equipment falls into disrepair and you don’t have the funds to fix it, you don’t want to be paying off a loan for years to come. Short-term loans can help cover the emergency, and make it so you won’t be stuck with a loan forever as you gain the ability to pay it off.
Look at Turnaround
If you’re looking to purchase inventory, you might find inventory that you were able to obtain at a discount. If you get a short term loan on that inventory, you might be able to make a quick turnaround on that purchase. You’ll find you have gained profit from your loan venture.
Whether you’re a new business or you’re just starting up a new projects within your business, sometimes the move requires more funds up front that you have. But as the business or the projects starts to become more fully fledged, the money will start to come in, with some timelines as short as a few months. With this kind of situation, a short-term business loan makes sense, so that you’re not paying back loans over a long period of time for money that you were going to get quickly.
If you know you want a short term business loan but don’t know where to get it, your search and ends with TopMark Funding. Contact us today to start talking about short term business loans and learn even more about how they’ll work with your business. You can get the terms that are best for you and only you with the personal attention that you’ll receive. Learn more about the rates you can expect and get the option that is going to benefit you the most.