A short term FUNDINGan is a type of business capital funding that can provide your company with quick working capital. Like most other bank funding, you’ll receive a lump sum of cash upfront which is repaid to your short term lender over a set period of time.
Some common examples of short-term debt include: Short-term bank funding. These funding often arise when a company sees an immediate need for operating cash. Short-term bank funding are due within a year.
For most small business owners, a short-term funding will likely be more suitable. However, sometimes long-term financing may be necessary. Regardless of the length of your funding, it’s important to work with a lender who understands the needs and challenges of your business.
Here are examples of four things that might be better suited to a short-term funding:
1. Project start-up costs: There are times when ramping up a new project requires upfront costs that might exceed a business’ ability to cover with cash flow, but will be recouped in 60 or 90 days. In that case, a short-term funding might be a better fit.
2. Overcoming a short-term seasonal cash flow need: Many seasonal businesses sometimes require an additional influx of capital to meet expenses during the downtime.
3. An opportunity to purchase inventory at a discount: A short-term funding could be a good option for purchasing inventory that has the potential to quickly create increased profit.
4. Emergency repairs of critical equipment: When equipment necessary to the operation of your business breaks down, a short-term small business funding can help get operations moving again without a four-year or longer funding obligation.
If you are a business owner looking for funding options contact First Down Funding for short-term funding. Quick online application and fast funding.Tags: Business, Short term funding, short term funding, Small Business Funding
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