Finding Short Term Loans For Bad Credit

What Are Short Term Business Loans?

As a small business owner, you are likely to find yourself in regular need of working capital. Working capital is  money that goes to anything, from repairs to staff to plans for expansion. With the wide audience of small business owners that may not qualify for traditional bank loans but still need them, short term loans are available to service their needs. One particularly valuable area is short term loans for bad credit. Restrictions can be a bit looser in some cases. This allows for more flexibility where other borrowers may struggle with other loans.

Let’s examine what sets short term loans apart. difference between short term loans and their longer counterparts is the loan maturity. Most short term loans need to be repaid to the lender in one year. A large percentage of them are repaid even sooner than that, often between 90-120 days. As a result, these present an opportunity for small business owners to get the finances they need without taking on long-term debts.

With the ability to cover cash flow issues as well as traditional spending, short term loans are a valuable asset for the small business owner. However, there are some issues in getting one that you should be aware of, especially with bad credit.

What’s Wrong With Short Term Loans For Bad Credit

First, and perhaps most concerning to a would-be borrower is what you need to get one. Whether you’re going to a bank, credit union, or any other type of lender, you’ll need to present lots of materials to get your loan. Payment history, cash flow history, and possibly your income statements will play a role. While startups can get short term loans as well, they will most likely need projected cash flow statements as well as collateral to get funding.

To make things clear, getting a short term loan isn’t as difficult as many other loans. However, some of the main issues still apply, just on a smaller scale. But restrictions are getting tighter on all levels, so don’t be surprised if you get turned down the first time around.

As a result, if you’re lacking in any of these areas, short term loans for bad credit may be out of reach. If you do qualify, though, there are other things to consider. Interest rates are higher for short term loans. Also, you need to make sure that your loan payments don’t hurt your cash flow.

At first, this may sound a bit confusing. The whole point of short-term loans is to help cash flow, right? Yes, but you need to make sure you plan out your repayment properly. Lower maturity means that you need to be able to repay your money quickly, and slow spots in your business can present big issues. Imagine having to take on another loan to help repay your first one! Moves like that can sink a small business quick.

What To Do Without Short Term Loans For Bad Credit

It’s important to realize that short term loans do still fill an important niche for many small businesses. Equally important, though, is knowing that they may not be the best option in all situations. If you lack the documentation or collateral to qualify are or concerned about your ability to repay, you may want to look elsewhere.

When it comes to using short term loans for bad credit, in theory, they should help. The issue is that many lenders will be reluctant to give you such a loan in the first place if your credit is bad. As a result, even if you have the means to work with it, it doesn’t mean that they are a possible option. In general, those with bad credit will need to pursue alternate methods.

eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

We place no limit on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take a set part of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.

Interested? All it takes to begin is filling out a simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.