Things come up and sometimes you need cash quick for your business. That’s where a short-term business loan can come in handy. The following lays out things for you to consider before signing on the dotted line…
Look at a Short Term Loan as Temporary Relief
Short term loans usually need to be paid back in 1-3 years so make sure you will be in position to pay it back in that window of time or don’t take the loan. It’s risky to look at a short term loan as extra money because it is not. It will need to be paid back to avoid credit problems, law suits, or worse.
Consider the Lender
The type of lender you borrow from will play a role in how easily you will be able to pay back your loan. Credit cards can have high interest rates. Banks can have lower rates but require much more red tape and paperwork. Lenders like Lendio are a good fit in-between.
Consider the Terms and Conditions
Read the large and small print and know exactly what you’re getting and what you need to pay back and how quickly. If there are interest rates that can increase because of a missed payment then know that going in so you don’t miss a payment. Ask questions and get answers. If it feels too good to be true, than it probably is. 🙁
Consider the Amount
Make sure you are borrowing the right amount of money. Don’t get a loan for more than you need to just make your life easier. Borrow what you need today, pay it back as quick as you can. You can always borrow more later.
Lendio’s Short Term Business Loan Option
Surprises happen – and that’s why the short term loan exists. It can help you stay afloat during a temporary cash shortage or manage the overhead that comes with taking on an unusually large project. You may need collateral and you’ll definitely need experience in your business’s field.
Loan Amount: $2,500-500,000
Term: 1-3 Year Maturity Date
Payment Frequency: Daily, Weekly, or Bi-Monthly
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