Short-Term Business Loans
Are you thinking of starting a new business, but are faced with financial challenges? Or, are you already a business owner, and need additional capital to get you through a slow season?
Have you tried taking the traditional lending route, by going to a bank, credit union, or other large financial institution, only to find that you do not qualify for a business loan?
The answer to your challenges may very well be in the form of a short-term. Short-term loans are helpful to those who are starting a new business, as well as to businesses that are seasonal in nature, such as retail businesses which have to build up inventory for a particular season or holiday. Such a business might need a short-term loan to buy inventory well in advance and not be able to repay the loan until after the holiday or season, when they have turned a profit. That is the perfect use for the short-term business loan.
Other uses for short-term business loans may be to raise working capital to cover temporary deficiencies in funds so you can meet payrolls and other expenses. You may be waiting on credit customers to pay their bills, for example. You may also need short-term business loans to pay for other overhead and bills for which the business is responsible. You may just need a short-term loan to even out your cash flow, particularly if your company is a cyclical business.
Qualifying for a Short-Term Loan with Traditional Financial Institutions
In order to qualify for a short-term loan, you must meet many requirements, including a good personal and business credit history. You will have to present comprehensive documentation to your lender, whether it is a bank, a credit union, mutual bank, or some other type of lender. The lender will want, at least, a record of your payment history for other loans you may have had, including payment histories to your suppliers (accounts payable) and your company's cash flow history, for perhaps the last 3-5 years. You might also be prepared to hand over your bank and income statements for the same amount of time if the lender requests it. All documentation should be in a professional format.
Your qualifications for a short-term loan will help determine whether or not the loan will be secured by collateral or whether it will be an unsecured, or signature, loan.
This can be a very overwhelming and time consuming process, only to find out that the lender did not approve your loan, after all of the hard work and time you put in.
And, what if you are just starting a business and have no business credit history or have not been in business for the minimum of 2 years?
Short-term Collateralized Loans
Short term collateralized loans are loans that require a tangible item (to be used as collateral), within a wide range of values, depending on the type of loan and desired loan amount.
Collateral for a short-term loan may be a vehicle (Auto Title Loans/Pink Slip loans), a paycheck (Payday or Cash Advance loans), or jewelry and other valuable items (Pawn loans).
If you have exhausted all other traditional lending resources and have a car, these types of loans, particularly auto title loans, may be a terrific solution for you. These loans are all designed to be short-term solutions and should be researched and obtained wisely.
Payday and Cash Advance loans should be a last resort, as they tend to have very high costs, fees, and interest rates. They are also they are also designed to have an average term of 30-90 days, which may not always be enough time and far too much cost. And, with Pawn loans, the pawn shop takes possession of the collateral for the entire length of the loan. Therefore, these options may be viable for those who do not have a car.
With an auto title loan, you benefit with a longer (yet, still short-term) 36 month loan amortization and lower interest rates, which both help keep your monthly payments manageable. Plus, you get to keep and drive your car!
Most auto title loan lenders will run a credit check (for BK’s), require proof of income, proof of employment, proof of residence, full coverage auto insurance, and loan limits. Furthermore, since they are generally not direct lenders, borrowers may have to wait days to get “approval” and their cash!
However, if you want cash fast, with no questions asked, a direct lender like Coastal Title Loans & Finance, LLC will provide a fast easy solution for you. All you need is the title to your car and a valid driver’s license. Easy!
Coastal Title Loans & Finance, LLC:
· Does not run your credit.
· Does not require proof of income, employment, or residence.
· Provides auto insurance for those who do not have full coverage.
· Gives you cash in minutes!
· Offers the very lowest rates.
So, why wait any longer to start that business you have been dreaming of, or grow your existing business, or get ready for your busy season? It is possible for a start-up company, or any other company to secure a short-term loan, without having to go through a lengthy approval (or not approval) process, supply countless documents, go through a tedious process, and have to wait long periods to receive funds.
The availability of short-term loans to small businesses is absolutely essential in order for our economy to operate smoothly. Without short-term financing, small businesses literally cannot operate. They can't buy their inventory, cover working capital shortages, expand their customer base or operations, or grow. When banks tightened up their lending policies during the Great Recession and afterward, small businesses and the economy suffered because of these very issues.
To get more information, please call 714-701-8555.
Have you tried taking the traditional lending route, by going to a bank, credit union, or other large financial institution, only to find that you do not qualify for a business loan?
The answer to your challenges may very well be in the form of a short-term. Short-term loans are helpful to those who are starting a new business, as well as to businesses that are seasonal in nature, such as retail businesses which have to build up inventory for a particular season or holiday. Such a business might need a short-term loan to buy inventory well in advance and not be able to repay the loan until after the holiday or season, when they have turned a profit. That is the perfect use for the short-term business loan.
Other uses for short-term business loans may be to raise working capital to cover temporary deficiencies in funds so you can meet payrolls and other expenses. You may be waiting on credit customers to pay their bills, for example. You may also need short-term business loans to pay for other overhead and bills for which the business is responsible. You may just need a short-term loan to even out your cash flow, particularly if your company is a cyclical business.
Qualifying for a Short-Term Loan with Traditional Financial Institutions
In order to qualify for a short-term loan, you must meet many requirements, including a good personal and business credit history. You will have to present comprehensive documentation to your lender, whether it is a bank, a credit union, mutual bank, or some other type of lender. The lender will want, at least, a record of your payment history for other loans you may have had, including payment histories to your suppliers (accounts payable) and your company's cash flow history, for perhaps the last 3-5 years. You might also be prepared to hand over your bank and income statements for the same amount of time if the lender requests it. All documentation should be in a professional format.
Your qualifications for a short-term loan will help determine whether or not the loan will be secured by collateral or whether it will be an unsecured, or signature, loan.
This can be a very overwhelming and time consuming process, only to find out that the lender did not approve your loan, after all of the hard work and time you put in.
And, what if you are just starting a business and have no business credit history or have not been in business for the minimum of 2 years?
Short-term Collateralized Loans
Short term collateralized loans are loans that require a tangible item (to be used as collateral), within a wide range of values, depending on the type of loan and desired loan amount.
Collateral for a short-term loan may be a vehicle (Auto Title Loans/Pink Slip loans), a paycheck (Payday or Cash Advance loans), or jewelry and other valuable items (Pawn loans).
If you have exhausted all other traditional lending resources and have a car, these types of loans, particularly auto title loans, may be a terrific solution for you. These loans are all designed to be short-term solutions and should be researched and obtained wisely.
Payday and Cash Advance loans should be a last resort, as they tend to have very high costs, fees, and interest rates. They are also they are also designed to have an average term of 30-90 days, which may not always be enough time and far too much cost. And, with Pawn loans, the pawn shop takes possession of the collateral for the entire length of the loan. Therefore, these options may be viable for those who do not have a car.
With an auto title loan, you benefit with a longer (yet, still short-term) 36 month loan amortization and lower interest rates, which both help keep your monthly payments manageable. Plus, you get to keep and drive your car!
Most auto title loan lenders will run a credit check (for BK’s), require proof of income, proof of employment, proof of residence, full coverage auto insurance, and loan limits. Furthermore, since they are generally not direct lenders, borrowers may have to wait days to get “approval” and their cash!
However, if you want cash fast, with no questions asked, a direct lender like Coastal Title Loans & Finance, LLC will provide a fast easy solution for you. All you need is the title to your car and a valid driver’s license. Easy!
Coastal Title Loans & Finance, LLC:
· Does not run your credit.
· Does not require proof of income, employment, or residence.
· Provides auto insurance for those who do not have full coverage.
· Gives you cash in minutes!
· Offers the very lowest rates.
So, why wait any longer to start that business you have been dreaming of, or grow your existing business, or get ready for your busy season? It is possible for a start-up company, or any other company to secure a short-term loan, without having to go through a lengthy approval (or not approval) process, supply countless documents, go through a tedious process, and have to wait long periods to receive funds.
The availability of short-term loans to small businesses is absolutely essential in order for our economy to operate smoothly. Without short-term financing, small businesses literally cannot operate. They can't buy their inventory, cover working capital shortages, expand their customer base or operations, or grow. When banks tightened up their lending policies during the Great Recession and afterward, small businesses and the economy suffered because of these very issues.
To get more information, please call 714-701-8555.
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