Short-term business finance

04

Aug

Short-term business finance

posted by: Jason Hulott

As a successful business owner, CEO or CFO, you need to have a number of tools at your disposal if you are to manage your business towards success.

One of those that’s potentially very useful is the short-term business loan.

Why these might be required

Relatively few businesses might be in the fortunate position of being categorised as being “cash rich”. For the vast majority of businesses, balancing cash flow and working capital is a daily, if usually routine, business challenge.

Yet even in the best-run businesses, sometimes things can get out of synch. Examples might include that large payment from a customer that didn’t arrive in when expected or suddenly being hit by a hefty and entirely unanticipated bill that must be paid immediately.

In these situations and many others like them, gaining access to emergency finance might make the difference between managing a minor inconvenience or something that becomes a major catastrophe. This is the domain of fast online business loans.

How they are used

The services we offer at Cubefunder essentially mean you can make an almost instantaneous online application for an emergency cash injection. Typically, you will receive a rapid, near instantaneous decision in principle – subject to a subsequent full review of your application.

If your application is formally approved, the sum you have requested might be available in your bank account within as little as 48 hours.

Typical online business loans might be anywhere between a minimum of £5,000 and a maximum of £100,000.

Purposes

Broadly speaking, the loan may be used for any legitimate business purpose of your choice.

Of course, it will typically be necessary to give an explanation as to why the funds are required. Funding requests for what might be termed “routine business management” reasons might typically be more favourably reviewed than those which appear to be simply related to trying to keep a failing business afloat.

Examples of positive reasons might include cash flow management resolution, the purchase an item of capital plant that is on a special and limited duration offer, the need to pay an immediate emergency repair bill on a broken-down production machine or vehicle and so on.

Qualifications

Loans are typically available to limited companies (Ltd). They are not of a type suited to the self-employed or non-limited sole traders. There may be other more suitable loan products available for them.

As part of our formal best professional practices obligation to the regulator relating to responsible lending, we will need to perform certain checks as to your ability to repay the short-term loan over time. They will typically include looking at your company’s financial standing, plus your own consumer credit history references.

Do please note that even if you have some credit history problems on your records, they may not be a showstopper in terms of progressing further.

Summary

The big advantage of this type of lending is that it is dynamic and offers fast progress towards resolution. This is in-line with modern business practices where form-filling and extensive debates and deliberations over loan applications are simply no longer fit for purpose.

This is a fast and efficient modern operation and it may provide you with the peace of mind of knowing that you have access to cash available at your fingertips in qualifying circumstances.