I’m sure we’ve all heard the same horror stories about the dangers of short-term financing. High interest rates, short repayment periods, and sky-high hidden fees are supposed to go hand-in-hand with nearly every type of loan.
But, not all lenders are created equally. The specific needs and goals of your business will have a heavy hand in determining your financing options.
However, short-term financing can be a useful tool for anyone who needs cash quickly to cover business expenses, pay for renovations, or improve internal operations.
Keep reading to learn how you can use fast financing to further your enterprise.
Save Time – and Money
Standard lenders, like banks and credit unions, can take weeks to review an application for a loan. That’s time you could be spending on your pending project or upcoming goal.
Short-term loans are a great way to pay for:
- Site expansion
- Building renovations
- Maintenance and repairs
Short-term financing, such as auto title loans, take less time to process from start to finish. Even if you are able to find a better interest rate with more traditional lenders, you could save automatically just by reducing your wait time.
Choosing a quicker loan method could help you to complete objectives in less time, which can save you money on staffing and resource costs.
Maintain a Tighter Budget
Unless you plan on repaying your corporate debt immediately, you need to consider how much interest you’ll accrue.
Typically, you collect interest for as long as you hold a balance. This means that short-term options are best for companies that create a clear repayment timeline.
To stay ahead of interest payments, make sure to calculate the total interest amount in your repayment plan. This is also important to consider when comparing different loan servicers.
Short-term financing is easier to keep track of, since you’ll generally be expected to pay back the debt in less time than with personal or bank loans.
Get Started on Pending Projects
Sometimes, it’s best to tackle upcoming projects as soon as possible. Short-term financing gives you the ability to get a head start on achieving your business goals.
Whether you want to implement new technology or throw a client event, having the ability to procure funds quickly gives you a steep advantage over other lending methods.
Staying a step ahead will improve your ability to plan for the future. You’ll also be more prepared for dynamic changes in workflow or production demand.
Expand Your Marketing Efforts
Many companies are only a few thousand dollars away from increasing their earning potential, improving client relations, and expanding their brand’s reach. A killer marketing campaign could give your company the boost it needs.
Short-term financing will provide you with the amount you need quickly, and without the headache.
Using your car as collateral is another way to simplify the process, since you won’t have to jump through all the hoops that traditional banks require. You can also qualify for lower interest rates, depending on your credit and income history.
In many cases, you’re just a few thousand dollars away from taking the next step in the trajectory of your enterprise. Keep your business modern and competitive by considering short-term financing for your next project. Get the money you need right away, and reduce the impact a new line of credit will have on your company’s budget.