Quick Facts About A Short-term Loan

For merchants going through a slow business phase, those getting started or the group looking to make sure their companies experience positive cash flows, gaining access to working capital is a decisive element for the survival of the business.

Short-term loans are intended for immediate financing needs such as sorting flaws that may lead to unexpected extra charges, bridging any gaps in cash flow, and making the most of latest business opportunities. The advantage with a short-term loan is that it covers your costs without compromising your daily accounts rather than draw funds from other sectors of your business.

Why you need a short-term loan for your business

Short term business loans can turn out useful during a growth phase, a span of irregular cash flow or when you need to make seasonal purchases.  In case you realize the loan will put you in a hassle to repay it hurriedly, go for a short-term loan. Other cases where a short-term loan can be of help to your businesses include:

  • Short-term operational costs – If your company wishes to purchase extra equipment or hire additional staff during festive seasons, a short-term loan can help you do the job.
  • Accounts payables vs. receivables – Short-term loans can assist cyclical businesses bridge gaps in their cash flow.
  • Cash flow – When you don’t have cash at the moment but can depend on funds coming in soon, seek for a short-term loan to effortlessly solve the problem and get your business back on track.
  • Emergency repairs – When the unexpected knocks on your door, you should be prepared to respond efficiently. Whether your computer crashes down or your packaging equipment malfunctions, a Short-term loan can get you the finances to cover your unforeseen costs.

 

How to get a short-term loan for your business

Customary lenders are conformist in their lending habits which leave SMBs few places to source their working capital. Most of them offer short-term loans in the form of lines of credit with an option of paying interest strictly with a principal payoff at a particular time in future; from 3 months to a year or even more.

However, lenders like First American Merchant have new ways to provide you the working capital you need to ensure you don’t miss any important opportunity. We will allow you draw from your agreement over and over again as you want, without imposing any early payment fees for merchants who pay off their loans quickly.