22 Feb What is the best short term business loan?
In short, the best short term business loan…..is the one that best meets your needs.
All short term business loans are different.
They have different:
- features
- fees
- benefits
- drawbacks
- repayment options
- security options
- covenants
- documentation
- assessment requirements
They can also have varying terms, be only used for specific purposes, and be available only to specific types of borrowers
How do you know you are getting the best short term business finance arrangement?
Your best option is to go to a broker, who will ask you a heap of questions about you, your business, your goals and what you are wanting to achieve. They will then source as many loans as possible that meet all, or as many of your requirements as possible, and will talk you through each option, explaining the benefits, features, fees, drawbacks and restrictions. And then you get to decide which one helps you to meet your needs.
It shouldn’t necessarily the cheapest one. Nor necessarily the option that comes from a bank. Not necessarily the lender who has said you can have an extra $20k “just in case”.
But the one that best meets your needs, while assisting you to meet your goals.
There is no one size fits all in business. There is no magic solution.
When your business is in a period of difficulty, or uncertainty, it can be challenging to make a decision on finance slowly. A decision where you have considered your options, and balanced those against what your business really needs both in that moment, and in the short term future.
We encourage you to take your time, assess the options, work out what you really need and how the funding is going to assist you in meeting that goal. Selecting a loan based on price is an error we see frequently, and quite often one that makes the business owners’ situation considerably worse.
Speak with your network of business owners. Book appointments with your professional financial and tax advisers, and involve your broker in these conversations, that way everyone on your team is on the same page and all are working towards the common goal of helping you reach your goal.
If there is anything we have learned over the past year, it’s that there is no excuse for not taking the time to ask all the questions and gather all the information.
Each week we sit in on Zoom meetings with brokers, clients, accountants, and financial planners to work through different scenarios and come up with the best solution possible for the client. If you’d like us to do this with you, just ask, we are only a phone call or Zoom meeting away.