Short-term loan solutions are designed for urgent funding when going through multiple review or approval rounds is not an option. Suppose that your supplier is offering a bulk discount that could save you thousands, but you’ve only got a few days to grab it.
At such a time, going through a bank means paperwork and putting assets on the line, without the surety of it getting approved. And since you don’t have time, you need quick cash to lock in the deal and keep your margins healthy.
That’s where short-term funding makes the most sense because it doesn’t bury you in red tape, and you’re not stuck with long contracts.
But the term ‘short term loans’ is broad, and you can access multiple models depending on your business needs. Today, we’ll explain loans you can access when speed matters the most and you don’t want to get tied up in paperwork.
Stick around to know what options you have.
Short-Term Loan Solutions for Fast Approval and Processing
Time is of the essence, and some decisions need to be made on an urgent basis for a successful business. That’s when most funding options fail because they take time. However, there are short-term loan solutions that free you from that worry; here are some of them:
Business Line of Credit
A business line of credit loan is a revolving account where you are approved for a set credit limit and can draw funds whenever you need them.
The main advantage of a line of credit loan is that you only pay interest on the amount you use, not the full limit. And once you pay the used amount back, the funds become available again to work like a safety net for your ongoing business needs.
It’s for companies that need consistent access to working capital, not just a one-time boost. So it gives access to larger amounts (anywhere from $10,000 up to $5 million) and can be structured for over ten years. Such flexibility makes a line of credit loan suitable for businesses that experience ongoing or seasonal cash flow needs.
A notable advantage of this type of funding is the speed at which it can be approved. Thanks to modern underwriting systems at places like ROK Financial, businesses can qualify for funding within a day. So it’s particularly important for companies that need to act quickly to lock in seasonal inventory or to pay vendors.
Notably, qualifying for a business line of credit requires some level of stability. Most lenders expect 6-12 months of operating history from a business and a minimum of $10,000 in gross monthly sales.
Cash Flow Loans (Working Capital)
As the name suggests, a cash flow loan is meant to cover short-term gaps when business expenses are due before income arrives. There are times for a business when sales are strong on paper, but because of delayed payments, the cash is insufficient. So instead of struggling to pay bills or keep operations running, a business can get a cash flow loan to bridge that gap and use quick funding.
Since this loan is also not tied to hard assets like property or equipment, its terms are easier to manage. Lenders don’t ask for collateral in the same way they would for standard financing. Here, the approval is based on your revenue stream and expected cash flow. So if your business shows steady income, even if it fluctuates month to month, you can qualify for this funding.
Cash flow loans can take different shapes depending on what fits the business best. For example, a lump-sum short-term loan gives you a set amount with a clear repayment schedule. On the other hand, merchant cash advances allow repayment through a percentage of your daily credit card sales, which adjusts with your revenue. Invoice financing lets you borrow against unpaid invoices so you don’t have to wait weeks or months for clients to settle their accounts.
Many cash flow loans can be approved and funded within a day or two, and are especially useful for businesses that face seasonal ups and downs or deal with unpredictable payment cycles.
Equipment Financing
Equipment financing is a way for businesses to purchase the machinery or technology without paying the full cost up front. Since paying up front ties up cash reserves, you can borrow the amount needed and repay it in fixed installments. With this model, you can start using the equipment while keeping your cash flow available for other expenses.
Impressively, the borrowing range is broad in equipment financing, so it’s equally suitable for small and large businesses. For example, at ROK Financial, equipment financing loans start at $10,000 and can go up to $5 million, depending on your equipment and business.
Since repayment terms for these loans can be short to medium, business owners get time to pay the loan off comfortably. Another reason it’s considered a safe loan is that it’s associated with the equipment bought, and that serves as its own collateral.
Get a Loan Approved Fast
If you have been in business for more than 6 months, your monthly sales are $10k plus, and you have a decent credit score of 500, ROK Financial will manage the rest of your money worries.
You can get approved for all the above-explained short-term loans and always have the capital to keep the business running. Our approval times are super fast, and there’s no mind-boggling documentation to make matters more stressful.
Get in touch today and take the money stress out of the equation.
FAQs
How quickly can I apply for another short-term loan after paying one off?
You can usually apply right after paying off the first loan, but approval will depend on your updated financials and whether the lender is comfortable with your repayment history.
Do short-term loans affect my business credit score?
Yes. Timely repayments improve your business credit profile, and missed or late payments can hurt it. Some lenders also report directly to credit bureaus, so keeping up with the repayment discipline is important.
Can I use more than one short-term loan solution at the same time?
Yes, but it depends on your revenue and ability to repay. Lenders may limit multiple loans if they believe it strains your cash flow. So don’t get multiple loans at the same time unless your business can handle the payments.
