Short-term and long-term loans refer to the repayment time set by the lender, in which a loan is paid back. A short-term loan usually will be paid within a few months to a year, in contrast, a long-term loan repayment period can last a few to several years.
The decision to apply for a short-term loan vs. a long-term loan should depend on the purpose for the loan combined with the entrepreneurs revenue projections. A business loan preferably should help a business to expand and generate more revenue.
Top reasons you business can benefit from a business loan:
- 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
For more information about how to apply for a business loan contact First Down Funding. Funding small and mid-size businesses in America, fast approval and quick funding.
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