It is a source of quick capital, it can help small businesses with their working capital flow and allow them to dedicate their focus to more areas of the business.
It can be a credit score booster, since it is faster to pay off the due amount for short term loans than it is for long-term loans. By paying the loan on time, the results for an improved credit score is almost instant.
|Short Term Business Loans||Long Term Business Loans|
|Loan Terms||3 to 18 month||3 to 20 years|
|Interest Rate||Higher interest rates||Lower interest rates|
|Credit score||Good credit score is not required||Good credit score required|
Start-Up Businesses. Brand new businesses often find that they cannot offer the extensive security needed to obtain a long-term loan. Starting a business also comes with high set-up costs that can place a huge burden on the start-up. To alleviate this issue, start-up owners can opt for start-up business loans to relieve the financial burden and obtain the necessary capital needed to get up and running.
Fast-Growing Businesses. Rapid business expansion may occur if you achieve unexpected success. While this is a boon to the business, it also adds pressure to your operations. You may need to hire new people, buy new equipment, and set up more infrastructure to keep pace with the growth. A short-term business loan provides the capital needed to sustain the growth of the business as well as help with the repayments.
Businesses with Cash Flow Issues. Many small businesses rely on timely invoice payments from their clients. Delayed payments from customers could potentially lead to cash flow issues, and this can hinder their ability to pay for their own bills. Moreover, chasing delayed payments could lead to the business facing legal costs. A short-term business loan could help such businesses remain solvent while they manage their cash flow situations back to order. One of Max Funding’s clients used a short-term loan for this very purpose. Poised to buy a new premise, the client experienced cash flow hiccups as the purchase drew to a close. Max Funding helped them to secure a short-term loan of $885,000, so they could complete the settlement.
Businesses in Emergency Situation. Often the source of your money issues may not necessarily stem from business-related issues. Emergency situations may demand immediate access to capital in order to remedy the urgent situation. For example, hardware and maintenance issues could prevent the business from operating. In this case, the business must ensure they have sufficient funds to cover the repair costs, otherwise the business may be left unable to generate further income. A short-term business loan can remedy the immediate problem to ensure the business stays in operation.
At Max Funding, we pride ourselves in being a short-term business financing specialist that caters to all small to medium enterprises in Australia.
Here is why we stand out:
Whether you are looking to purchase equipment, expand your business or looking to relieve working capital, a short-term business loan is a wise financing choice. Our loans enable readiness, durability and flexibility. Even if you do not expect something to happen, extra cash flow may be a wise choice.
Our loans are fast and easy to get approved. Obtain funding within just 24-48 after verification is completed successfully and the contract is signed.
|Client Name:||Michael Rilley|
Situation: Michael’s construction business was bidding for a big contract with a telecommunications company. However, his staff needed to undergo a specific training to be able to do this job and Michael did not have the necessary funding to afford it at that moment in time.
Solution: Max Funding was able to give Michael a quick loan approval and he was able to send his staff to training. This led to him landing the big contract which ultimately allowed him to further grow his business.
|Client Name:||Jasmine Wynack|
Situation: Jasmine was in the middle of arranging a large loan for her business; however the other lender was taking longer to process the loan than she had initially anticipated. As a result, her business started to suffer and was in urgent need of funding in order to pay off her bills.
Solution: Max Funding was able to approve her loan with minimal processing time and Jasmine was able to keep her business from going into the red. On top of that, when Jasmine had finally received the funds from the other - slower lender, she was able to pay off her loan with Max Funding. This allowed her to save on half of the unpaid interest, with no penalty fees.
Max Funding specialises in providing short term business loans to business owners across all over Australia. Typically, banks and other lenders tend to require more time to process your loan application for short term business funding. However, at Max Funding, we pride ourselves in our engagement of being invested into helping our client’s situation. Our friendly team is always ready to help your business reach the next stage. Fill out the application form, and get your business funding today!
To apply for short-term business funding, it’s easy.
You’ll be amazed at how easy it is to apply for a loan through our website. Filling out the pre-approval form places you under no obligation to continue with the loan process. And thanks to our advanced approval algorithms, we’re able to provide you with a pre-approval decision in approximately five minutes.
As with any loan, poor preparation can lead to you running into issues. Use this checklist to ensure you’re ready to take out a loan and avoid any problems.
It’s not a good idea to apply for a loan when you have no direct purpose. You may feel that it is necessary to have some capital ready for the “just in case” situations that may arise. But instead, you’ll end up repaying the money that you’ve borrowed without ever using it for anything useful.
A short-term business loan may not be the best choice if you have no immediate plans for the cash. Instead, it’s best to outline the exact ways that you’ll use the money. Of course, many lenders will also want to know the purpose of the loan. If you can’t provide one, they’re likely to refuse your application.
There’s an added benefit to doing this. Listing the reasons why you need the money also gives you time to determine the exact cost of each issue you identify. This means you can apply for exactly the amount you need.
Generally speaking, you’ll pay more total interest on a short-term loan than a long-term one. This means that the shorter term loan usually comes with higher monthly repayments that is needs to be dealt with.
None of that will be an issue as long as you know you have the means to repay. For example, you might choose to take out a loan to keep the business going because your clients might not have paid their invoices on time. In that situation, you know that future cash will flow into the business and this can be used to handle the repayments.
You can usually access short-term loans even if you have a poor credit rating. However, a lower rating could lead to more stringent requirements. Plus, you might have to deal with a higher interest rate.
As a result, it’s best to know where your credit rating stands before you apply. This gives you more reasonable expectations in relation to the terms of the loan.
Research is the key here. Don’t just simply go with the first lender that you come across. Spend some time comparing different lenders. Aim for lenders that offer flexibility and fast approval. That’s what a Max Funding client found after working with us. An unexpected contract rescission left the client at risk of losing a business opportunity. Max Funding helped them to secure a $100,000 loan in less than 24 hours.
Checking interest rates is the obvious first step. But it’s also worth checking comparison rates if you can find the figures. These rates tend to provide a more realistic view of the rate you end up paying.
Ask the lenders about the specific features that they offer too. Keep in mind that short-term loans come with short repayment windows. Any lenders that offer more flexibility in this area should shoot to the top of your list.
Also, consider the differences between fixed and variable interest rates. A fixed-rate may work well if the current national interest rate is low. But you want to avoid fixing yourself into a high rate. A variable-rate may be the best choice if you feel like the national rate will decrease during your loan period.
Yes, at Max Funding, we understand that bad credit doesn’t automatically equate to irresponsibility. We believe in second chances, and strive to give as many bad credit short term loans as responsibly as possible.
To apply for a short term business loan, it’s very easy. Simply complete the obligation-free application form and once verification is done and the contract is signed, the funds will be transferred to you as fast as 24 hours.
For more information, head over to our How To Apply page to see just how simple the whole process is.
A short-term business loan is just like what its name suggests; a loan paid off in a short period of time. For most short-term lenders in Australia, a loan is classified to be ‘short-term’ if the repayment period is less than 24 months. However, at Max Funding, we believe that more flexibility is possible without taking the loan into the long-term territory, and can last as long as 36 months.
To put it all together, with Max Funding, a short-term business loan is simply a loan that is to be repaid within 36 months.
Yes, to apply online, simply fill out our online pre-approval form which takes just 5 minutes. With Max Funding, it’s easy to be eligible. We cater our services to businesses regardless of whether they are existing or new.
A line of credit is attached to the short-term business loan and every other loan (excluding USB) offered at Max Funding. To access your line of credit, email Loans@MaxFunding.com.au your desired amount, and the team at Max Funding will take care of the rest for you.
Unlike traditional banks, Max Funding tailors to businesses of all sizes, regardless of whether they are new or existing. Max Funding provides more flexible terms than traditional banks in their short term business loans, with an extended repayment period of 36 months compared to the 24-month term for a traditional bank. Max Funding also allows clients to borrow as little as $2,000 in comparison to the bank’s minimum of $50,000.
To find more on how a loan from Max Funding might differ from a traditional bank loan, head over to our Max Funding VS. Bank comparison for more information.
Do you have a question that has not been answered above?