Many SMEs tend to choose short term business loans because it is an easy way to get the money in a short period. Indeed, short term business loans can provide the money to settle down a temporary shortfall, to cover urgent expenses or to finance your business growth.
Let’s have a look at the best top 3 short-term business loans for your company.
Top 3 short term business loans
There are different short-term loans available with different advantages. Let’s analyse the key features of our three best short term finance options to ensure you choose the solution that best fits your needs.
Unsecured Small Business Loans
An unsecured business loan allows you to borrow funds without providing collateral as security. This type of loan is easy to obtain with fast approval and can be an effective solution to seasonal ups and downs.
- Up to $250k without collateral
- Up to 36-month term (typically 12-month term)
- Used for any business purpose
- Trading for a minimum of 3-6 months
- Quick approval process
- Same day funding
- Rates change from lender to lender subjected to application strength
Generally, lenders consider the application based on the business cash flow and the client’s credit history. Alternative lenders are willing to take a higher risk than financial institutions. Consequently, due to the greater risk, lenders offer a higher interest rate.
Lending criteria are different from lender to lender. At Lending Connect we care about our client and we work in order to secure the best deal with one of our partners.
General lending criteria for an unsecured loan:
- Be an Australian Business with an active ABN
- Annual turnover of minimum $75k
- Trade for a minimum of 3-6 Months
- Have a profitable business with a good cash flow
- Show good credit score
Unsecured business loans are generally short-term by nature but in certain cases, our lenders can offer this type of loan from 3 months up to 3/5 years.
Business Line of Credit
A business line of credit is a flexible finance product that can help you with irregular or unpredictable cash flow difficulties. You only pay interest on the balance you use and can access money fast as they are required. Beside other loan options, the borrower does not receive the full loan amount at once, but only to cover business expenses.
- From $5k – $100k
- Flexible term
- Interest-only on the amount drawdown
- Set up within 1-2 days
- Product approval lasts for 12 months before reassessment is required
Our lenders usually require your bank statements, balance sheet and income statements to apply for this loan.
Invoice finance factoring
Invoice finance factoring is a type of loan that can offer a quick boost to your cash flow. Businesses sell invoices to a factoring company at a discount and they help companies release cash from their debtor. The best option if you need cash as soon as possible.
To apply for this loan our lenders require:
- ID document
- Customers list
- Copies of the invoices you want to factor
- An aging report for your accounts receivables
- Access to your accounting system
Are you looking for a short term loan?
At Lending Connect we can help you to choose the best finance options for your business needs. Get in touch with one of our expert consultants and see if you qualify.