Short Term Business Loans: What Are Your Options?
When you own a small business and need a short term business loan, historically you had two options: no and absolutely not. Now, there are alternative lending sources but it is sometimes difficult to know which one is best for you and your business. It helps to have further information about your options for short term business loans.
The Truth about Traditional Banks and the Short Term Business Loan
There are many reasons why you might need money for your business right away. Perhaps you were counting on funds from a client that have not come in yet but you still need to make payroll. Maybe you have been presented with a wonderful business opportunity but it requires hiring temporary help immediately. So, your first thought, naturally, is to go to the bank.
In reality, traditional banks are not the place to go when your business needs a short term loan for quick cash. For starters, they make you complete lengthy applications which will probably take you days to finish because you have to collect and compile all the necessary information concerning your business equity, account balances and other questions about your finances.
After you have pulled your hair out to accomplish this as fast as possible, the bank officer or loan manager can still take up to four to eight weeks to make a decision on your short term business loan. In the end, the most you may wind up with is a business line of credit, if you are lucky. Oh, and that employee payroll or business opportunity you were trying to make? It’s gone.
The Importance of Having a Line of Credit
Sure, it is easy to say that you should have a line of credit for your small business already in place. In addition to making payroll or paying suppliers, other business matters can sneak up on you, such as paying business taxes. Therefore, it is crucial that you have access to cash for emergencies.
However, when you are busy running a small business, managing staff and meeting the demands of customers, strategic planning can sometimes get lost in the shuffle. Establishing a line of credit may have been something you always thought you would get to later.
The Alternative Lending Option
All this second guessing and hindsight does not change the fact that you still need a short term business loan right now. Thankfully, there is an option for you, and that answer is Account Receivable Factoring companies like Financing Solutions.
We are there for you when you have nowhere else to turn. Financing Solutions provides super-fast, easy funding when you need it, based on your account receivables. You will get a decision in hours, not weeks, and the money can be in your account in just a few days.
With this alternative lending solution, you can pay the money back in 1-26 weeks, so there is no long-term commitment like traditional banks or Factors. It is time to stop worrying and give us a call.