What is the difference between short term and long-term business funding?
January 2nd 2012 at 9:46pm Published by firstdownadmin
Short-term and long-term funding refer to the repayment time set by the funder, in which funding is paid back. A short-term funding usually will be paid within a few months to a year, in contrast, a long-term funding repayment period can last a few to several years.
The decision to apply for a short-term funding vs. a long-term funding should depend on the purpose for the funding combined with the entrepreneurs revenue projections. business funding preferably should help a business to expand and generate more revenue.
Top reasons you business can benefit from business funding:
- Inventory Purchase
- Add another location or move to a larger location
- Equipment financing
- Hire more staff
- Increase working capital
- Expand products or services
- Marketing and advertising