One of the primary challenges faced by small businesses during their initial stages is establishing themselves sufficiently to ensure long-term survival, all while working with limited financial and other resources. Short-term small business loans can prove to be highly beneficial during this period. Below, you will find more information about these loans.
Short Term Small Business Loans: How They Are Different From Other Loans
Short-term small business loans differ from other loans in that they are specifically designed to provide quick funding, with repayment terms that are relatively short. Typically, these loans are repaid within 3 to 18 months from the time of agreement. However, there are also options available with repayment periods of two to three years, which is still considerably shorter than the traditional small business loans offered by banks and credit unions.
Other Qualities of These Loans
In addition to their shorter repayment terms, these loans generally have lower interest rates compared to loans offered by traditional lenders such as banks and credit unions. Various lenders provide short-term loans to small businesses, each catering to different needs. Some lenders specialize in supporting small businesses at their inception, while others focus on businesses that have previously borrowed from them and have a proven track record of meeting repayment terms. There are also lenders who cater to businesses capable of repaying the loan in the shortest possible time frame.