Business loans are usually associated with traditional 5-10 year term loans from a local bank. Things have changed recently. Today, short-term business loans are popular among business owners who need to quickly take advantage of opportunities and overcome challenges on their way.
Micro Loans
If you need inventory, but it is only available at a discount for a limited time, or if your marketing opportunities are time sensitive, a micro loan can be a better option to consider. Beyond that, short-term financing options are ideal for those business owners who are waiting for their clients to pay.
Generally, short-term loans have higher approval rates as compared with long-term bank loans. Short-term business financing can help you build business credit. They are also helpful in enabling you to qualify for larger loans and longer terms at a later date.
To get a reliable and low-cost micro loan, consider applying to firstamericanmerchant.com. First American Merchant (FAM) is a reputable payment processing company that specializes in the high risk sector.
Applying for a Short-term Loan
The modern world of business offers a variety of small business funding options. More and more business owners are turning to online lenders these days. In 2015, online lenders provided an estimated $7.9 billion in small business loans, which is up 68% from 2014, according to Morgan Stanley.
Many small business owners still look for traditional financing at their local banks. Those who need a loan quickly apply for shorter-term financing. The longer terms are typically associated with a traditional business loan from the bank. Also, not all business owners can qualify for a bank loan. Short-term financing options are more practical, provide easier access to capital and are called to meet immediate financial needs.
All businesses considering a business loan should start by researching the available options. To get approved, it is important to well prepare before applying for funding. As Mark Palmer, the managing director at the investment firm BTIG, says, many business owners aren’t prepared for the application process, and think they can simply fill out an application and get approved.