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Every business at some point of time requires financial aid to smoothly run their business and maintain the cash flow. In such scenarios, short-term business loans are very effective. A short-term business loan generally has to be paid off in a short duration through daily/weekly repayments. However, the duration varies as per the terms of the company or the lender. In most cases, the loan duration is either a year or even less depending upon overall risk profile of the business.
How can a short-term business loan help your business?
For a business, it is important to maintain cash flow, demand-supply chain, and pay off all the expenses on time. While there can be many circumstances where the business may require urgent funds for a short duration of time. In such cases, short-term business loans can help in maintaining the smooth functioning of the business.
| Borrowing Limits | |
|---|---|
| Loan Amount | $5k- $20m |
| Term | 3 months – 24 months |
| Can be used for |
|
| Repayments | Daily/Weekly/Fortnightly/Monthly |
| Security | Both Unsecured and Secured Options |
| Pre-Approval Time | 2-4 hours |
| Unconditional Approval and Settlement Time | Unsecured: 24-48 hours Secured: 3-7 days |
| Low Doc Approval and Documents required |
|
| Interest Rates | Starts from 7.99% p.a. |
| Benefits |
|
*The information provided in critical information sheet is intended as a guide only. Please contact us for more information
There are many things that a business owner should keep in mind while applying for a short-term business loan. Here are some of the things that can help in avoiding problems while applying for business loans.
Before applying for a loan, it is necessary to know the purpose or use of the money. The reason why knowing the purpose is important is because there should be a plan on how the money will be used and how the business will settle the amount within the decided time frame.
It is very essential for a business to consider the total amount repayable, as the interest rates are higher in short-term business loans as compared to normal or regular loans. While looking for the use of a loan, it is also important to consider the repayment.
Short-term business loans are available for all businesses with low credit scores, but the low score can impact the loan in many ways. While applying for the loan it is important to check the details before so that you as a business owner can plan beforehand.
A low credit score can affect the interest rate at which the business will get a loan. Knowing the credit score before will help in understanding the estimate of the rates and other terms of the loan.
For any business, it is important to maintain adequate cashflow for the smooth functioning of the business. While there are times when the business may require urgent funding to fulfill some order or pay wages. In such cases, the business can simply apply for a short-term business loan and get funding within the same day.
Generally, lenders hesitate to fund your business if you have had a bad credit history in the past. However, there are lenders who are happy to give a second chance by starting with a short-term business loan for 3-6 months. Timely repayment also helps in building your credit score.
Industry: Clothing and apparel
Loan Amount: $75,000
Term: 6 Months
Trading Time: 12 Months
Situation: After 4 months of lockdown period, it was finally Christmas time and John who owns a clothing retail store did not have sufficient stock to meet the huge demands during this period. The customer approached us for a quick business loan for a shorter term.
Action: Our lending specialist assessed the client’s cashflow situation and pitched the application with some additional strengths of the business.
Result: We were able to get the client approval within 2 hours and funds were into his account the same day. This helped him to procure stocks in a timely manner and earn good profits during the festive season.
Industry: Real Estate
Loan Amount: $615,000
Term: 12 Months
Trading Time: 2 Months
Situation: Michael was planning to purchase a property by selling one of his other properties. Considering the sell would settle before purchase settlement, the customer had paid 10% deposit as well for the property. Unfortunately, due to some unforeseeable circumstances, the sell settlement got pushed to another 3 months. Now client was looking for an urgent short-term funding to complete his purchase transaction to avoid losing his deposit. The client approached us to help him with an urgent short-term funding.
Action: Our lending specialist understood his situation and suggested to go for a short-term bridging finance which can rightly fulfill his needs. We were able to get a letter of offer within a couple of days.
Result: The client was happy to proceed with the offer and got his purchase settled on the due date which in turn saved him from losing the 10% deposit for the property. Construction line business requires strong
Short-term business loans help in catering to the instant or short-term business requirements. There are no boundaries on how the business spends the loan amount, it can be utilized for any business need.
Yes, it is possible for a business with low credit score to get a short term business if there are no outstanding defaults. In fact, a short-term business loan is the right product which gives business owners with a past bad credit history to build back their credit.
A short-term business loan can be availed for a duration ranging from 3-24 months. The term depends on the overall risk assessment of the business by the lender.
Applying for a short-term business loan is easy. Businesses can simply submit the application form along with the required documents. Once the documents are submitted, we can get an approval in as low as 24 hours.
Contact us today and discover how our expertise can help your small business thrive.
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1300 253 041
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enquiries@brocfinance.com.au
Broc Financial Services Pvt Ltd.
ACN 648 088 304
Credit Representative number 540795 is Authorised under Australian Credit Licence Number 389328