Uses of a short-term business loan
Generally speaking, small business owners tend to need cash as fast possible, so they usually consider a quick solution (such as a short-term loan) which is likely to meet immediate business needs.
While they can run into some problems to get a credit line, short term credits are more flexible financial tools to manage cash flow. They are also useful for those entrepreneurs who want to cope with the start-up costs when interesting business opportunities arise. They involve smaller borrowed amounts of money, with a range that varies approximately from $100 to $50,000.
Additionally, business credit cards are another essential option to have quick access to a small credit. So, picking up the correct business credit card provides owners with some operative financial advantage, such as the opportunity to track expenses for their business and to earn rewards for using it.
It is important to clarify that short term business loans are convenient for a more varied range of business owners and entrepreneurs because they can save on interest costs, are customizable to the debtor and can be obtained faster than any other financial tool.
Three owners who got the financial loans they need
Beautiful inside out
Diana has a natural and organic skincare small business in Los Angeles.
After having worked for one year to create the different products she wanted to offer —like lotions, moisture creams and cleansers— she opened her shop only three months ago. Although Diane goes to the shop every day, she also visits the small factory that manufactures her products in the mornings to monitor the whole processes.
A month ago, she received an incredible order: 100 units of her hydrating chamomile moisturizing cream for a retailer in San Francisco. Diane was very happy, it was the opportunity she had been hoping to make her business grow.
However, she did not have the money needed to buy the materials to manufacture the products. She decided to get a short-term business loan by applying for it at her bank because she was sure she would be able to pay the installment payments.
The loan met her immediate financial needs and with that cash, she could deliver the order which was the beginning of a great business relationship
Maurice has a Music School for children and teenagers in Detroit.
He opened his institute doors one year ago and since then he has received a lot of new students. In December he had to face a challenge: he needed to buy three traditional electric guitars with a modern edge to welcome a new teen band who would rehearse at his school. He had been chosen to be their technical coach and he could not waste the professional opportunity.
Consequently, he contacted his bank representative to apply for a business credit card. After getting his credit history and score, he finally obtained the card. He then was able to buy the guitars: three Fender Player Stratocaster Maple Fingerboard Electric Guitars.
One cupcake at a time
Barbara is the proud owner of a small cupcake business in Carson City, Nevada.
She started making them from home until she was able to open her own shop. Three weeks ago, she was offered the opportunity to provide one of the most important hotels in the area with a big number of cupcakes weekly.
It was the opportunity she had been waiting for, but she didn’t have the equipment she needed to produce such a large number of cupcakes. She realized that was the perfect moment to apply for a short-term loan to seize the business opportunity she had been presented with. Finally, she got the loan and could meet the hotel’s deadlines.
If you are experiencing a similar situation to those of these 3 entrepreneurs, now you know that there are practical and quick solutions to them.
The most important thing you need to do is to make an informed decision by identifying what financial product you need: a business credit card or a short-term business loan.
Remember, research is of the essence when it comes to finances.