Short Term Business Loans are usually unsecured loans as such loans involve a shorter repaying duration. The repayment duration generally ranges from 5 to 15 years. This clearly implies that the borrower has can repay short term business loan in few years. So the borrower can choose to repay the loan taking into account the and repaying ability. For instance greater loan amount can be repaid in say 15 years whereas a lower amount of loan can be paid back early. In other words, the business person does not have to continue paying the loan installments for many years. The loan thus is off the borrower’s shoulders shortly.
But a little disadvantage of short term business loans is its high cost. Since usually short term loan is unsecured loan, involving risks for the lenders, they tend to charge interest at higher rate. However, on comparing the lender you always have the opportunity to take the loan at lower rate especially if your is good.
In case you have a damaged credit history with late payments, arrears, payment defaults and CCJs, still short term business loans are available if the business person’s repaying ability is great. The lender will see all business records and past bank statements before approving short term business loans for good or bad credit borrowers.
Banks, financial companies and online lenders are source of short term business loans. For competitive interest rate and cost free processing of the loan prefer online lenders. They also approve loans faster as compared to other lenders.