The Top Benefits Of A Short-Term Loan For Your Small Business

Small businesses comprise a big part of the UK economy, whether you are running and operating a simple neighbourhood retailer or are providing a service such as construction, cleaning and maintenance, travel and tourism, food and beverage, or any other type of business in any industry.

But why is it that small business enterprises are often the ones who fail in the long term? It is said that one reason for this could perhaps be a lack of funding. All businesses need funds to survive and grow – and if you do not have the necessary financial resources to run and operate your small business, you could very well be missing out on your chance of growth and success.

The good news is that you have alternative financial solutions at your disposal, such as taking out a small business short-term loan. Short-term loans which are payable in less than a year are ideal for those small enterprises which need quick money for various expenses, payables, and investments. Below are a few other advantages associated with a short-term loan for your small business:

A More Affordable and Effective Alternative to Bank Loans

There are many alternative financial providers in the UK today who are more than willing to give you the financial resources you need with minimal paperwork and with less hassle when it comes to other documents and requirements. All you have to do is provide these lenders with proof of your trading history (most lenders require a 6-month trading history, but there are some which only ask for a three-month trading history as well); a lease for your business premises or proof of ownership of your business premises; and an annual turnover of around £35,000, depending on the lender, among other easy requirements.

Banks, on the other hand, require much more than this, as we all know. So if you need quick financial resources which have a lower interest rate than a bank loan, then an alternative financial provider or lender is an obvious choice.

A Loan that is Suited to your Terms and your Business Situation

The problem with loans such as those from banks and other financial institutions is that they often come with unmanageable repayment terms and are not usually enough to meet your needs. Often, banks will just give you a set amount that is based on your credit score but not really based on what you actually need. But if you are planning to acquire a short-term loan from an alternative lender, you have the additional benefit of a customised loan that is more suitable for your requirements and your business and financial situation.

A Quick Turnaround and Fixed Costs

Another benefit to short-term small business loans UK alternative lenders offer is the fact that you do not have to wait for a long time for an answer, unlike with bank loans. Often, you can receive a response in as little as four days. If you need immediate cash, a short-term loan like this is a godsend indeed. Also, depending on the lender you choose, you can benefit from fixed costs with no APR that can really help your business move forward with the financial resources it needs