Short-Term Loans and How They Work
Short-term financing can help you take care of immediate needs in your business, whether you need to stock up on inventory or recognize a new business opportunity. No collateral is required for short-term financing, the paperwork is minimal, and perfect credit is not required. BFNYC accepts every industry and every FICO score.
Short-Term loans are utilized as a way to fill immediate, short-term needs or cash flow issues. This type of loan doesn’t require a lot of paperwork, funds quickly, and can be used for almost any business purpose. Short-term loans are perfect for purchasing inventory, filling gaps between accounts payable and receivable, as well as any emergency repair or maintenance expenses that may pop up. While this type of financing does have it’s pros, having a shorter term also means having higher cost involved than traditional secured financing in a shorter term, generally collected via daily or weekly ACH payments. A traditional term loan is one where you borrow money and pay it back within a fixed term at a set interest rate. This type of loan allows you to build your credit and you will have fixed monthly payments. The drawback is that they come with less flexible terms and rates and may charge a penalty if you pay your loan off early.