Fund projects and purchases that drive your business forward.
Sometimes your business just needs extra cash—right away.
If your business has recently experienced an unexpected change and is in need of extra capital to help carry itself over a gap in your cash flow, a short-term small business loan may be right for you. Depending on the change that occurred in your business, you might require loan terms that range anywhere from 90 days to 18 months, which BitX Funding is more than capable of handling.
Certain loans are unsecured, where no collateral is required by the lender before your receive your loan; however, the interest rates for these loans may be significantly higher because of the added risk. The loans we offer that have lower interest rates do typically require collateral in a variety of forms, such as inventory, equipment, accounts receivable, or other property.
If your business is experiencing a slight cash flow problem, BitX Funding is here to help with our short-term small business loans.
A short-term loan’s repayment process is straight forward but there are a few key differences in short business loan terms compared to traditional long-term financing you might be more familiar with. First, the repayment period is obviously going to be shorter (hence the name). Short loans may only last a few months or up to a year. As a result, the amount of capital you can borrow is much less than you’d get with a long-term loan.
Even so, you could qualify for a short-term loan of up to $500,000 with lenders like BitX Funding.
The way short-term small business loans are repaid also differs from typical working capital loans for small businesses. Rather than having a monthly payment, lenders typically require daily or weekly payments based on a factor rate rather than an APR. So, if you take out a $50,000 loan with a factor rate of 1.20, your total amount owed comes to $60,000. A 12-month short term loan contains 264 business days, so if you’re required to make daily or weekly payments, that amount comes to just over $227 each day or $1,135 a week.
Since the application process is much more lenient than alternatives, most short-term small business loans have comparatively high interest rates. When compared to loans that are more exclusive or have longer terms, you’ll usually end up paying significantly more in exchange for the same loan amount.
The best way to minimize the total cost of securing additional working capital is to repay your loan as quickly as possible. This can be especially crucial if your financial institution provides an early repayment discount.
You Should Receive Your Loan Quickly
The most obvious benefit of a short-term small business loan is that it can provide you with fast capital for your operations. In addition, a short-term business loan application is typically shorter than that of a traditional bank loan and requires less information. This can be incredibly useful if your business has expenses that are due in the immediate future, and you can’t afford to wait on a long approval process.
The Application Process Is Simple
As we previously mentioned, the application process for a short-term loan for your business is fast. In addition, it will likely be easy to complete. These loans require relatively little paperwork and the applications can usually be completed online.
Easy to Qualify For
When compared to more traditional business financing options, most short-term business loans have remarkably high approval ratings. Even if your business has a limited or poor credit history, you’re still very likely to qualify for short-term business funding. The lender will still most likely want to review both your personal credit and business credit scores, but their requirements probably won’t be as stringent.
One of the main concerns people have with short term loans is the costs. How much will you be charged? What are the interest rates? What if you can’t pay my loan back? Many short-term lenders have attempted to be transparent with their fee structures, outlining what you will and might be charged when you decide to take out short-term business funding with them. In this guide, we’ll take you through exactly what you need to know.
Don’t worry—let’s explain with an example.
Short-Term Business Loans & Factor Rates
Short-term business loans come with a higher price tag because:
Simply put, you’re paying the price for speed and convenience: fast cash is expensive cash.
Higher rates and shorter terms can generally offer reduced paperwork and faster funding times than traditional term loans.
But expensive debt can be better than no debt if your business needs the money to take advantage of an opportunity… Assuming you know you can afford to pay it back. Just because they’re pricey, short-term small business loans don’t need to be a bad investment.
In fact, sometimes a short-term loan is exactly what your business needs to grow.
Plus, short-term business loans can also be refinanced into longer-term products down the road if your business’s financials improve.
To attain and qualify for a short-term business loan, BitX funding considers the following in order to approve your short-term business loan,
● Annual Revenue (100k Annual Revenue)
● Time in Business (Minimum one year)
● Cash Flow
● Credit Score (500+ credit score)
Qualifying for a short-term business loan is convenient and easy to secure with BitX funding. Just get in touch with the business loan specialist and quench your short-term business needs with a proper loan program that is really meant to be yours.
Short term business loans depict that they are offered for a short span of time. Short-term business loans quickly need to be paid off as the name already suggests.
Normally, it is witnessed that Short-term business loans must be paid off within six months to a year duration. But in most cases, it could extend for 18 months.
So, it depends upon the type of lenders you go for if you stick with BitX funding then you do not have to surrender for hidden terms and conditions. BitX funding assists you with seamless loan plans that are well-suited for your businesses.
Hailing for a short-term business loan, you would have to ignite your small business for it with the following mentioned steps so that you do not need to squander around.
A short-term business loan finances your business with upfront working capital that lasts from approximately 3 months to a year, and you must pay off the loan in 18 months or less.
Short term loans could be used to fund seasonal preparations, fill a short-term financial void, renovations, fulfil urgent purchase orders, or fund your small businesses in maintaining sound cash flow.
On a flipside, short-term loans are not suitable for high-cost, long-term projects that could take years before you encounter a pay-back on your investment.
Start looking for short term business loan lenders, if you have not decided one for your business yet then do check BitX funding loan plans that are just made for your business niche.
A short-term business loan provides an ultimate solution when you come across some minor cash flow dilemmas.
Unlike a conventional long-term bank loan, which is usually paid off over several years, BitX funding’s short-term loan is designed to be paid back often within a defined set of deadlines.
BitX funding’s short-term loan could be used for emergencies, such as inventory repairs. There are several types of short-term loan plans available on BitX funding, but in most cases, the following steps are the same:
Implement according to the plan make repayments on the agreed date until the loan is paid back
BitX Funding is your online marketplace for small business loans. From SBA, start-up lines of credit, short term loans, mid term loans, invoice financing to merchant cash advances and lines of credit, BitX Funding is where lenders compete for your business. Our top-rated lenders focus on real-life business data and cash flow, which means you can qualify for a loan even if your credit score isn’t perfect. What differentiates us from the competition is that with a brief questionnaire our highly trained loan consultant will listen to your needs and match you with the appropriate funding. You can go at it alone and spend hours online trying to find funding for your business or you can have a one stop experience with BitX Funding and our direct connection with the lenders.