Short Term Business Finance

The landscape of business finance is constantly changing and with so many different options available, it can sometimes become overwhelming to find the best solution for your business.

The type of finance options available for each business is unique and can depend on a variety of areas such as how long the business has been running for, the monthly cash flow of the business, the amount of funds required and what the funds are to be used for.

For large funding requirements and long-term options, generally the more conventional lenders can fulfil these needs. However, there are circumstances which may prevent a business from obtaining a loan using these types of facilities, therefore short-term bridging finance can be seen as a possible option to see the business through the short term.

Short term loans do not always mean bridging finance. Short term loans are usually between 6 – 24 months and can be paid down making regular principle and interest payments, clearing your business debt over a much shorter period. Usually for principle and interest short term loans there is a limit to the amount you can borrow. The lending ratio is generally 1:1 or 2:1 depending on the length of the loan. For example, if your business was turning over $30,000 per month, a lender would look at lending you either $30,000 for a 1-year term loan and $60,000 for a 2 year term loan.

Generally, with short term loans the application and approval periods are much shorter than mainstream lenders, ensuring funding is received quickly to grow your business straight away. The circumstances that a short-term business loan may be required may include but not limited to:

· business expansion

· purchase of additional stock

· purchase of a vehicle or other business equipment

· receivables gap (waiting for an invoice to be paid)

· maintenance or repairs of equipment or premises

· staff training or new employee costs

If you are looking for a business financial solution, feel free to call us at Vine Capital to run through your scenario to see if this is something we can assist you with.

vinecapital.com.au or 07 5546 4884