Is your business experiencing a temporary financial glitch? A short term business loan could be the answer.
You’ve been here before. Your business is starting to struggle under the weight of a temporary cash flow problem. And it is temporary, just a glitch in your business matrix. But it’s time to face facts – you need some quick financial relief or you might not make it to the next financial year.
So, what are the pros and cons of taking out a short term business loan in Australia?
What is a short-term business loan?
A short-term business loan, sometimes known as a business bridging loan, is short-term finance. Designed to offer small to medium-sized businesses the funds they need for a short period of time, most businesses needs the money to push through temporary cash flow issues or to have cash on hand to fund investments. A short-term business loan can even be used to plug the sudden gap left by a slow moving traditional lender who can’t get their paperwork organised on time.
The expectation is these loans will be repaid in full within a few months but sometimes up to a year. Bridging finance is commonly used by investors who need money fast, and businesses who can’t afford to wait the standard six to eight weeks traditional lenders – like the big banks – need to get all their ‘i’s dotted and t’s crossed.
Short-term business loans – the pros
Ultra-fast finance – how does ‘the money will be in your bank account within 24 hours’ sound? Strive Financial offers ultra-fast finance because, especially in this economy, good deals don’t last forever.
Easy application process – as you’re paying a slightly higher interest rate and repaying the loan quickly, the paperwork is kept to a minimum.
Less paperwork – if you’re a business outside the standard business structure – like a freelancer working in the gig economy – there’s every chance the big banks don’t want to lend to you. Mostly because you can’t supply the reams of ‘correct paperwork’ needed to get a small business loan.
Bad credit – doesn’t mean it’s the end of the finance road for you. Because you’re offering real estate as security and the interest rates are higher, lenders are more inclined to take a risk.
Short-term business loans – the cons
Higher interest rate – ultra-fast finance means you’ll be charged a higher interest rate because of the extra time and effort your financier needs to push the loan through super quick.
Real estate – you’ll need to own real estate to put up as collateral. The property will also need to be independently valued and fall within the accepted LVR (Loan to Value Ratio), which is usually around 70-75 percent.
As you can see, the pros outweigh the cons. So why not call the team at Strive Financial and set up a meeting to chat about how we can help you plug the gap, save the day, or just make your business dreams come true.