As a small business owner, it can be frustrating when opportunities arise but you don’t have the capital to grab them with both hands, for example if you want to expand, diversify, or take advantage of a great marketing opportunity. Equally, an unexpected outlay can seriously tip the scales of your cash flow and have crippling consequences. That’s where small business term loans can make all the difference:
What is a small business loan?
It’s actually pretty simple.
A “small business loan” is initiated when a borrower, the business owner, borrows a sum of money from a lender. The sum of money that you borrow is based on an agreed-upon set of pre-specified terms for repaying the principal of the loan plus interest over a period of time.
In other words, if you own a business and borrow money from a lender on behalf of your business with an agreement on the payback terms, you’ve taken out a small business loan.
Does a Small Business Term Loan Make Sense for My Business?
Small business term loans are ideal for bridging a gap or fluctuation in your cash flow, or for a one-off purchase of equipment or resources in order to capitalize on an opportunity or complete a big job. This is a great option when you need some up-front capital to keep your business on track or to take the next step as you know that you’re going to have the funds in the near future to pay it back; for example, if you’re using the loan to cover payroll for additional staff just before your peak season.
What Are the Perks of Getting a Small Business Term Loan?
Quick access to up-front capital, right when you need it
Low-risk, because you’re preparing for an increase in cash flow
Regular, fixed payments over a set time period, so you can plan ahead and budget appropriately
To find out what sort of business short term loan you could be eligible for, speak to one of our business advisors and get a quote without impacting your credit.