If you are experiencing financial problems or are in need of funds to start your own business, a business or personal loan is what you need. It helps you get funds immediately and pay for it by terms. But in order to be granted a loan, you need to have the credentials. Most bankers need to see your bank account and check your references to grant you one.
Sometimes, you just need the cash for emergency expenses like restocking or short time inventory. One problem with bank loans is that they could take some time to be granted. If you happen to qualify for a loan, the payment terms could last for 3 to 5 years. That could be a burden especially for young entrepreneurs who are just starting their business. Even for experienced entrepreneurs and businessmen, long term loans could only give headaches in the long run.
Short term loans are good alternative if you don’t want the burden of long term loans. With these loans, you’ll only have to pay for it for months, one or two years depending on your payment ability.
Comparing Short Term and Long Term Loans
Some might think that short term loans will cost more as compared to long term loans. The truth is that it really depends on your financial strategy. These loans have higher interest rates but the ability to pay them off within a short period of time compensates for the rates. If you feel like you can complete the payment as soon as possible, then you should go for a short term loan. Note that the smaller interest accumulates over time and the total amount that you have to pay grows over time.
Unlike a long term loan, you’ll feel more secured with short term loans because of its flexible payment options. The best thing about these loans is that they are computed based on your ability to pay. Of course, each financial institution will have their own credit criteria. To explain this, here is an example. If you wish to have a $20,000 loan, you can have the option to pay the first $15,000 for 6 months then pay the remaining $5,000 for the next 6 months or 3 months as your cash flow allows. This gives you payment flexibility. You actually cannot do that with long term loans.
One problem with long term loans is the monthly bill. The monthly repayments are often fixed and are automatically deducted from your bank account. This can be a problem if you need funds for other emergency expenses.
A Businessman’s Solution
When it comes to business, quick solutions are always preferred. A businessman will need immediate solutions for emergency funds. If the nature of your business is product inventory, you’ll probably want to stock items which are fast moving (items that are easily sold). There will be instances when you will need to spend money for bigger orders made on credit transactions with some of your trusted clients. A quick loan will allow you to procure the goods that you need right away to meet your delivery requirements. When the clients pay you for their orders, you can simply repay your short term loan.
Convenience for the Travelling Businessman
One reason to have your own business is to have full control of your time. Your business operations should not be affected even if you are away. These days, you can make financial decisions and have them implemented without having to be physically present at your office. You only need an internet connection. There are short term loans online that you can avail of.
Unlike a regular bank loan which requires you to talk with the branch manager or representative personally, short term loans online allow you to fill up your application form through your laptop or smartphone. In that way, you don’t need to postpone or cancel a scheduled trip just because of financial problems. Within a short period of time, your needed funds will be available and accessible to the office personnel you authorize.
Apply for a Short Term Loan Now
The convenience of short term loans online cannot be denied. Assess your financial needs and carefully consider your paying capacity. When you are sure that you are indeed in need of financial assistance and that your expected cash flow is sufficient to cover your repayments, go for a short term loan. You do not need a huge bank account for approval. You can have flexible payment terms so you can grab business opportunities without compromising your financial status.Get Started Now!