If you need a business loan but don’t have a relationship with a bank, or you’re a new business, you may have trouble getting a traditional, long-term business loan from a typical bank. That’s when you should consider an alternative lender. These specialized lenders are accustomed to dealing with small businesses and/or relatively new businesses–and they can move fast–much faster than a standard bank. Short-term financing may equal higher interest rates, but it can be well worthwhile.
Here are some major advantages you can enjoy from short-term financing over a typical bank loan:
- Easy application: To apply, you only have to document a few business details (through online communication, not on paper). You must show that you’re the business owner and have a positive cash flow. Your credit score may be checked, as a standard operating procedure, but it’s not the deciding factor for your loan approval.
- Quick turnaround: It may take only a few hours to a few days to get your answer from an alternative lender specializing in short-term business loans.
- Poor credit is ok: If you have poor credit, you could still qualify for a short-term loan.
- Build your credit: Repaying the loan on time will help you build credit, in case you need a future long-term loan from a bank.
- Startups can qualify: If you’ve been in business a relatively short time, your application for shorter-term financing can still be approved.
Provided that you can make payments on time and agree to a relatively higher interest rate, a short-term loan could be just what your business needs. For instance, if you suddenly need funding because a customer didn’t pay, or is late in paying you, a short-term loan can help ensure you stay in business through the lean times.
When you’re in the market for short-term financing to sustain or grow your business, apply for funding with Infinity Lending Solutions. Contact us today.