Short term loans can include Working Capital and Merchant Cash Advance (MCA) and often allow for very fast funding so you get a lump sum of cash with a predetermined payment term. Payment is usually made daily, weekly or bi-weekly or monthly depending on what you qualify for. The short term loan is best for business with high and consistent sales that are in need of quick unsecured cash to use however you need.
When applying for short term loans, the underwriters will look at your bank statements and check your average daily balance, ending statement balance, amount and frequency of deposits, and if there are any negative balances. This will play a big role in determining what amount you can qualify for and your repayment terms.
Pros:
-
Fast Capital in as little as 24hrs
-
Unsecured
-
Easy approval process
-
Little documentation needed
- Many funding options have no minimum FICO requirement
Cons:
-
Cost of borrowing can be more
Best for:
-
Businesses that have high and consistent sales and bank deposits
-
Businesses that need financing right away
- Businesses that can pay off the loan quickly
