Almost every business needs to borrow at one point or another, and often short-term business loans are a better option.
Whilst it might be an exaggeration to say that almost every business struggles to borrow from a bank at some point, the fact remains that lending criteria have tightened significantly since the financial crash of 2008.
Even if companies meet banks’ exacting criteria, they will need to jump through hoops to apply, including amassing huge amounts of paperwork.
In fact, a recent survey showed that banks reject a staggering 82% of applicants whilst alternative lenders approve almost half of all applications.
So when is a short-term loan from an alternative lender the right step to take?
Short term business loans power growth
If you spot an opportunity to take your business to the next level – which could mean an acquisition, a large marketing campaign, or simply funding people, plant and raw materials to take on a huge new customer – and don’t have the cash on hand to take advantage of it, a short-term business loan is a great solution that could really repay dividends.
When you need money fast
Banks aren’t just picky about handing out loans, they’re also notoriously slow. If you have to act immediately to seize an opportunity or need an instant business loan to deal with a sudden cash flow crisis, you can’t wait and risk the computer saying no.
When your credit score is compromised
A poor credit score virtually eliminates your ability to qualify for long-term finance from a bank. However, alternative lenders like Cashsolv apply quite different criteria.
With your credit score being far less important – we’re more concerned with your assets, your business prospects and your real-world ability to repay.
When you want to repay fast
Some assets, such as property, are best paid for over the long term. Meaning anything from a few years to a couple of decades or more. However, do you still want to be paying for (and accruing interest on) a loan to bolster your cash flow or fund a three-month marketing campaign in five years’ time?
In general, if the money is going to be used quickly, it makes sense to repay as quickly as your cash flow allows.
When you don’t have time to collate paperwork
Banks generally require sight of reams of paperwork before they’ll process an application. Typically your articles of incorporation, balance sheet, three years’ profit and loss statements, three years’ tax returns, a business plan and maybe even CVs for the management team.
If you’re running a small business, you almost certainly have better things to do with your time.
When you need a loan fast, it’s time to talk to Cashsolv. We’re the specialists in small business finance and our short-terms could be just the solution you need.