Short-Term Business Loans: How to Get the Best Terms and Rates
A lightning strike wipes out a majority of your business’ computers. Your food truck’s transmission is kaput. An unexpected business opportunity lands at your door but requires quick financing. Your inventory is depleted due to higher-than-expected demand. There are many reasons to secure short-term business loans, and even more reasons to choose Fast Business Financial when you need quick access to working capital.
Since 2014, Fast Business Financial has helped nearly 4,000 small and medium-sized businesses acquire over $500,000,000 in financing. We love small businesses and are proud to maintain an A+ rating through the Better Business Bureau®.
Are you looking into how to secure the best terms and rates on a short-term business loan? Read on to get the facts from an insider’s perspective.
No waiting. Zero brokerage fees. Instant pre-approvals.
5 minutes is all it takes to apply and get pre-approved for a short-term business loan up to $750,000. By working with a licensed direct lender, you won’t have to wait weeks to learn about the status of your application (or pay brokerage fees). Apply for a short-term small business loan through Fast Business Financial, today!
Current rates and terms
A business loan consolidation can bring much-needed relief to small businesses bogged down by multiple loans or debts. Many businesses love the convenience of making a single monthly payment instead of multiple payments staggered throughout the month.
While the terms of a business loan consolidation are often more flexible, you might end up repaying your debts at a higher interest rate if your credit score has taken a hit due to late payments or maxing out numerous lines of credit.
Here are the latest rates and terms for small businesses looking to secure rapidly funded working capital:
|Loan Amounts||Term Duration|
|$2,000 – $750,000||90 days to 18 months|
|Interest Rates||Fast Approvals|
|10% APR and up||Usually within 48 hours|
How to qualify
As a direct lender, Fast Business Financial has more flexibility in terms of lending to business owners who may otherwise not qualify for a loan through a traditional lender.
Here is what we look for in approval short-term business loan applications:
- At least 6 months in business
- $150,000 in annual revenue
- FICO® score of 500 or higher
- 3 months of bank statements
That’s it. That’s all you need to start the process and get pre-qualified for a short-term business loan through Fast Business Financial. Compared to traditional financial institutions, Fast Business Financial gives more weight to current and projected revenues than credit scores alone.
Even if your credit score has kept you from obtaining a business loan in the past, we may still be able to help you obtain rates and terms that perfectly align with your business goals.
“I have bad credit. Can I apply for quick business funding?”
Life happens. At Fast Business Financial, we know there are two sides to credit; it can either help you secure great rates and terms — or squash your financing ambitions. You may have missed credit payments in the past, or a past bankruptcy continues to haunt your credit years after the fact. We’re here to help.
Business owners with credit scores in the area of 450 may still qualify for quick business funding so long as the business has documentation showing $15,000 in monthly revenue, and solid revenue growth.
Seeking a loan when you have bad credit may delay the process a few days, and you may not qualify for the same rates and terms enjoyed by those with good credit. But, taking out a business loan and keeping up with the payments can be a great way to restore your credit and finance your business.
If you have a problematic credit history and would like to learn more about which loan product is best for you, call Fast Business Financial at 1-866-277-2907. We have lending specialists on hand to answer your questions and make recommendations.
The benefits of working with a direct lender
Many small business owners love the fact that they can apply and be approved for a loan the very same day. And, by financing your business through a direct lender, businesses have access to loans with more reasonable terms and rates than they would typically receive from a traditional lender.
The benefits of going through a direct lender for this type of loan include:
- Fast access to working capital
- Minimal paperwork
- Flexible repayment terms
- Generous loan amounts
- Low rates compared to other quick loans
Are there any detractors?
Of course. All loans come with their own set of positive and negative qualities. So, no matter which loan you ultimately choose there are bound to be some drawbacks, and this still holds true with short-term loans.
Short-term loans usually come with higher interest rates compared to loans with longer terms. And, if you operate a business with seasonal revenue highs and lows, you may find it difficult to keep up with the fixed repayment structure during off-peak seasons.
Not sure if a short-term business loan is in the longer-term interest of your business? Call Fast Business Financial and speak with a lending specialist to discuss other options that may be open to you.
How to get the most out of your short-term business loan
Ask any small business owner about working capital and they will likely tell you that it “takes money to make money.” But, borrowing money isn’t the only solution, and it may harm your long-term financial outlook if you don’t do your research and rush into a loan decision too quickly. Although, in a vast majority of instances, small business owners know exactly why they are requesting a loan and how they will apply in order to build their business.
Here are a few general scenarios where taking out a short-term loan can be beneficial to a business’ success,
now and well into the future:
Let’s say a customer requests a bulk order of a certain product. They can pay for the items once they arrive in four weeks. But, the supplier doesn’t offer net 30 payments or credit of any kind — only payments in full. As it is, this product has a 200% markup and you extend a 10% discount to the customer since they are buying in bulk. Without taking a loan, it would be nearly impossible to fund this inventory purchase out-of-pocket. By securing a short-term business loan, you can pay your supplier upfront, the customer receives the products they ordered, and you have the money to pay off the loan and keep a decent amount of money as pure profit.
2Upgrade or repair equipment
A business plan is only as strong as its weakest link in the chain. If you find that a certain piece of machinery, equipment, or infrastructure is causing money-losing inefficiencies in your business, securing a loan with a shorter term may be a great option. This loan type allows you to receive funds quickly so you can being seeing returns on your investment as soon as possible.
3Promote your business
Short-term loans are not designed for those taking their first leap into the business world. But, if customers are raving about your products or services and one of the few things holding your company back is a lack of exposure, you may want to consider a loan to finance promotional opportunities. Plus, many advertising and marketing expenses are tax-deductible.
4Covering seasonal peaks and slumps
Many businesses face seasonal ups and downs. A retailer may suddenly remembers selling out a certain good the year prior, and wants to make an additional inventory purchase. Or, due to an unexpectedly rainy spring, the grass is growing faster and a lawncare provider needs to hire additional staff. These are a few instances where a short-term loan can cover a short-term need, without causing undue financial hardship on the business owner.
Depending on the nature of the business, a short-term loan can also be used to finance a business expansion. Just be sure that your expansion plans can begin generating profits before the term of the loan is finalized, otherwise, you may find yourself upside-down on the loan and have difficulty making payments.
Those considering expansions into multiple markets over the course of several years are generally better off going with a long-term loan.
Frequently Asked Questions
No matter the loan amount, we are sure you’ll have some questions when it comes time to apply. So, the Fast Business Financial team has put together a short list of these most-asked questions as they relate to short-term small business loans, and here they are:
?How much can I borrow?
All depending on your credit score, business revenue, and the amount you’d like to borrow, a direct lender such as Fast Business Financial can lend anywhere from $2,500 to $750,000.
?Does Fast Business Financial charge brokerage fees?
No. Fast Business Financial does not charge brokerage fees.
?How long does the process take?
While the process of securing a short-term loan is typically not as fast as a merchant cash advance or fast business loan, your loan will be processed much faster than going through a traditional lender. (Think days, not weeks.)
?Why do short-term loans have higher rates?
There are a few reasons why you will be charged a higher rate on a short-term loan than, say… a long-term loan or SBA loan. For one, the term is shorter, yet the risk to lenders remains the same. Therefore, lenders factor the term duration and associated risk of the loan into each loan offer.
?What information do I need in order to apply?
Fast Business Financial has a 5-minute pre-qualification application. So, you will know right away if you qualify for a loan.
At this point in the process, we will reach out to you for additional information, which may include:
- Documentation of ownership
- State-issued ID
- Last three months of bank statements
- Personal tax return information
- Bank account (routing and account number)
- Last 3 moths of bank statements
- Voided check from business account
?How soon do I need to repay the loan?
Since these loans are meant to satisfy short-term lapses in working capital or quickly generate additional revenue, the terms often require repayment within 18 months, although loans that require repayment within 3 months isn’t unheard of, especially for businesses that are only borrowing several thousand dollars.
?Is this the right loan for me?
This is the type of question we wished borrowers would ask more often. Loans with shorter terms are financed faster and are repaid faster. Short-term loans are meant to cover momentary “hiccups” in financing and businesses emergencies.
Before you apply for a loan, always do your research, seek advice from professionals, and square away all the reasons you believe your business could benefit from a loan, then weight these against the amount of interest you will need to repay on the loan.
?Why choose Fast Business Financial?
Fast Business Financial offers short-term loans to small and medium-sized business looking to replenish working capital, complete emergency repairs, purchase equipment, or finance a sudden business opportunity.
Since our brokerage’s founding in 2014, we have helped thousands of businesses secure over $500,000,000 in working capital. When you choose our team, you have the benefit of working with a direct lender that can help you secure better rates and terms for your small business.
Need working capital… and FAST?
As a company that works with small businesses on a daily basis, we know how important it can be to secure funding as quickly as possible. So, if you need working capital “like yesterday,” you’ll be happy to know that Fast Business Financial can transfer funds directly into your account in a matter of days — not several weeks or months — days!
To see if you qualify for a short-term business loan, complete our fast business financing application, or call to speak with one of our lending specialists. Dial 866-277-2907 today.
If your business can’t wait several days for a business loan, we’ve got you covered there, too. Fast Business Financial also offers fast business loans which can be approved and deposited into your business checking account with 24 hours.
Sensible borrowing for small businesses
At Fast Business Financial, we know it’s typically better for businesses to save money in anticipation of future financial obstacles or unexpected opportunities. And, most business owners we talk to understand the value of saving versus borrowing, but there are always those instances when taking out a loan becomes a business necessity.
In these cases, business owners aren’t looking for Benjamin Franklin-like advice — they just need quick access to working capital to overcome a present financial situation. This is what short-term loans are designed to do.
With short-term business loans, all funds that are approved and requested are deposited all at once. This allows businesses to immediately reinvest in their operations, whether this means buying equipment, hiring personnel, or consolidating multiple loans to take advantage of Fast Business Financial’s interest rates.