What is the best way to manage short-term funding?

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Most small business owners know that banks don’t lend money to everybody. Only about 20% of those who apply are excepted to receive loans and many just don’t apply.

But, if by chance you get your hands on some short-term funding (24 months or less.), here are a few suggestions as to how to best utilize those funds. And this is really important because the rates are usually higher and its best to use the loan in a way that will enable you to meet emergencies and make it possible to produce income and pay the loan off faster.

 
 Here are a few tips:

·      Emergencies arise for people and businesses and these funds can be used to get you through and around a crisis or two.

·      What about your payroll? Can you meet it this week? Will one more person on your staff for the next quarter make a big difference in your bottom line the following quarter?

·       Are some of your clients a little slow paying you? And you don’t really want to factor their invoices, but they need just a little bit more time, but you need the money now. You could get the short-term loan and pay it off when your clients pay you. This will cut that interest due the lender down, down, and down.

·      Your business is seasonal, and you need inventory to meet those needs. Without those much-needed funds, you may miss the opportunity to prosper during your businesses busiest season.

·     You may even be preparing to get a long-term loan but just need some time to get a few things in order to qualify. These dollars could be the bridge you need.

·      You want to establish a record of paying off larger loan amounts.

Most of short-term loans are paid off in 18 months or less. Lenders usually only take a few days to process loan and the rate is usually a little higher. But, it is usually easier to qualify for $4,000 to $15,000 loan amount.

Don’t be afraid to take the money just be sure that you consider all the angles regarding your Return-On-Investment (ROI). 


Start your own business funding agency. 

Click here for information.

 

 


 

 

 

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