If you are not a banker, all the details and fine print involved in a quick business loan can be confusing. For example, you may not know that business loan interest rates are not really applicable to short term financing.
When your business is having financial difficulties and you need help immediately, you still want to be sure you are getting the best deal possible. Therefore, you may wish to compare things such as different lenders and fees. You should also look at business loan interest rates and understand why they are not applicable to short term financing.
Understanding Business Loan Interest Rates
Going to a traditional bank for a fast business loan will mean you are automatically paying more than you expected. In addition to business loan interest rates, banks also have large administrative costs which get added to your loan. Worst of all, banks are notoriously slow.
You could try a traditional factor for an instant business loan, but they have expensive fees, often tens of thousands of dollars, which gets added to your cost. They also have operating policies that inform your clients when you are using a factor, which is a telltale sign that your business is in trouble.
Other Options for Short Term Financing
When you are trying to solve a short term problem, don’t choose a long term solution. For fast short term financing, a better choice is a cash advance company, like Financing Solutions (www.fundmypayroll.com). They can provide the funding you need without all the hassles of banks.
At Financing Solutions, the application process starts with just a 15 minute phone interview and you will receive an answer in a few hours. Once approved, you can have the money in your account in less than two days.
Most importantly, you can repay the fast business funding you receive in a few weeks or months, without penalty. Even if you find a lender with cheaper interest rates, it would not matter. By the time you are done paying off the loan, you will have paid more in interest over the loan period than you would by getting funding from a business cash advance company.
Why Cash Management is Vital to Your Success
Many small business owners believe that as long as customers are purchasing, then they are making money and successful. They are then blindsided when they find themselves unable to make payroll for the month. The problem may be cash management.
Due to account receivable gaps, it is easy to have supplies coming in, product going out and still be out of cash. By managing your cash, you can handle expenses, maintain more control and don’t have to take on debt as often.
It is important to carry the right amount of cash for your business to be successful. One of the smartest ways to do this is to contact Financing Solutions. They will give you the cash now that you need to grow your business.