Short term finance for those who need cash flow can be an invaluable tool to get your business through a tight period until additional resources become available. While the benefits often outweigh the limitations associated with short-term loans, it is always important to completely understand what you become liable for to avoid further damaging your situation.
Pros:
- Quick funds when you are in need. The biggest advantage of a short term loan is that, upon approval, you will often receive funds within a week. If for example, you need to make a quick payment to outstanding bills, or you need to purchase new stock quickly – a short term loan will help you meet your cash requirements immediately.
- Available even to those with bad credit. The banks will review your credit report before supplying you with a loan, and if your credit report is not up to their standard, your loan request will be denied, as they will deem you too high a risk. Short-term lenders are lenient on your credit report and will assess your loan by analysing other avenues such as asset values.
- The flexibility of repayments. Corporate Guardian can help you source a short-term loan with a range of options for repayments, i.e. if you prefer a 3 month loan or a 6 month loan and so on.
Cons:
- Higher interest rates. The biggest limitation of these loans is that there is generally a higher interest rate associated with short-term loans as opposed to long-term loans. However, it is acknowledged in most circumstances that a short-term loan is only an interim measure to refinance some to a more traditional long-term loan.
Make the right decision for your business
If the necessary funds can be obtained by any other means than a short-term loan, then always consider those options first. If you are in urgent need of a loan, be sure to ask an inordinate number of questions about the contract terms, and any other terms you may not understand. Further, always make sure you receive all copies of any loan documentation.
Find out what Corporate Guardian can offer you
Corporate Guardian assists businesses of all shapes and sizes with procuring short-term finance. If you would like a free assessment of your situation, fill out the enquiry form below, and one of our consultants will be in touch shortly.
Short term finance for those who need cash flow can be an invaluable tool to get your business through a tight period until additional resources become available. While the benefits often outweigh the limitations associated with short-term loans, it is always important to completely understand what you become liable for to avoid further damaging your situation.
Pros:
- Quick funds when you are in need. The biggest advantage of a short term loan is that, upon approval, you will often receive funds within a week. If for example, you need to make a quick payment to outstanding bills, or you need to purchase new stock quickly – a short term loan will help you meet your cash requirements immediately.
- Available even to those with bad credit. The banks will review your credit report before supplying you with a loan, and if your credit report is not up to their standard, your loan request will be denied, as they will deem you too high a risk. Short-term lenders are lenient on your credit report and will assess your loan by analysing other avenues such as asset values.
- The flexibility of repayments. Corporate Guardian can help you source a short-term loan with a range of options for repayments, i.e. if you prefer a 3 month loan or a 6 month loan and so on.
Cons:
- Higher interest rates. The biggest limitation of these loans is that there is generally a higher interest rate associated with short-term loans as opposed to long-term loans. However, it is acknowledged in most circumstances that a short-term loan is only an interim measure to refinance some to a more traditional long-term loan.
Make the right decision for your business
If the necessary funds can be obtained by any other means than a short-term loan, then always consider those options first. If you are in urgent need of a loan, be sure to ask an inordinate number of questions about the contract terms, and any other terms you may not understand. Further, always make sure you receive all copies of any loan documentation.
Find out what Corporate Guardian can offer you
Corporate Guardian assists businesses of all shapes and sizes with procuring short-term finance. If you would like a free assessment of your situation, fill out the enquiry form below, and one of our consultants will be in touch shortly.
