What is the difference between short term and long-term business loans?

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.

Categorised in: Finance, Loans

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