NonnykoliBest Short- Term Business Loans
What are the best short-term business loans in the market today? This article aims to help you find out this crucial information.
What are Short-Term Business Loans?
Before you dive into our list of the best short-term business loans, it’s instrumental to understand the underlying concept. Short-term business loans are a borrowing option that offers quicker payback periods (usually within two years or less), higher interest rates, and smaller borrowing amounts. They are perfect for handling immediate needs such as inventory purchases, financing a marketing campaign, or managing unexpected expenses.
List of the best short-term business loans available for you.
1. Kabbage
Kabbage is one of the best short-term business loan providers, known for its quick approval times and flexibility. Their line of credit ranges from $1,000 to $150,000, with repayment terms from 6 to 18 months. Although their rates may be higher, Kabbage offers a unique monthly repayment option which makes it easier for businesses to manage repayments.
2. BlueVine
For growing businesses dealing with cash flow stalls due to slow-paying customers, BlueVine is an excellent short-term financing solution. Through their invoice factoring service, BlueVine provides up to $5 million in funds, advancing 85-95% of the total invoice amount. This solution enables businesses to keep the cash flow moving while awaiting invoice payments.
3. OnDeck
OnDeck is renowned for its term loans and lines of credit, giving small businesses a maximum of $250,000, which is repayable within 3 to 36 months. The platform has an easy application process and a swift turnaround time, making it a great choice for urgent funding needs.
4. Credibly
Credibly offers both working capital loans and business expansion loans, which can be repaid over 18 months, making it a practical choice for both short and a bit longer-term needs.
5. FundBox
FundBox offers a unique type of short-term business loan known as invoice financing. This type of financing provides businesses with immediate cash by purchasing their unpaid invoices. FundBox advances 100% of invoice values up to $100,000.
6. National Funding
National Funding offers short-term loans from $5,000 up to $500,000, thus suitable for businesses of all scales. Their higher-than-average loan amounts make it an excellent choice for businesses seeking substantial short-term funding.
7. Lending Club
Lending Club offers a peer-to-peer lending platform, making it an attractive option for businesses seeking short-term loans. With loan amounts up to $500,000, which can be repaid in 1 to 5 years, Lending Club offers considerable flexibility to businesses.
Final Thoughts – Understanding Your Business Needs
Each short-term business loan provider offers slightly different terms, conditions, and specialties. Therefore, the ‘best’ short-term business loans truly depend on the specific needs of your business.
It’s important to remember that short-term business loans normally entail higher interest rates compared to longer-term loans due to the risks associated with the shorter tenure. Thus, while short-term loans can be an excellent solution for immediate funding needs, they are not a ‘one size fits all’ solution.
Conclusion
Now, equipped with a list of some of the best short-term business loans, you have a better idea of your options. It is imperative to carefully consider your business’s requirements, repayment abilities, and growth plans before choosing a financial product. In doing so, you can effectively utilize short-term business loans to tackle financial challenges and seize growth opportunities, setting your business up for successful navigation in today’s competitive business landscape.
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