UNDERSTANDING SHORT TERM FUNDING
August 3rd at 9:55am Published by firstdownadmin
Small businesses most often need short-term funding instead of long-term debt financing. Most term funding, classified as short-term, usually have a maturity of one year or less. They must be repaid to the funder within one year. Most short-term funding is often repaid much more quickly than that, often within 90-120 days. Short term funding is a type of business capital funding that can provide your company with quick working capital. Like most other financing, you’ll receive a lump sum of cash upfront which is repaid to your short term funder over a set period of time.
Commercial funding are granted to a variety of business entities, usually to assist with short-term funding needs for operational costs or for the purchase of equipment to facilitate the operating process. In some instances, the funding may be extended to help the business meet more basic operational needs, such as funding for payroll or to purchase supplies used in the production and manufacturing process.