Short term loans are usually offered for business purposes like a working capital loan, or for personal purposes like a personal loan. At Finnacle Capital Solutions, we can help you in getting short term loans for your business needs.
Such short term business loans are available at attractive, fixed interest rates. The repayment tenures vary based on your requirement, and are usually between 3 months up to 1-3 years. Most lenders offer this type of business loan as a secured loan, which means that you will need to pledge a security in order to be eligible for this loan.
Quick turnaround time is a salient feature of short term loans, in terms of acquiring the loan, as well as in terms of repayment. For example, there are some short term business loans from specific banks and lenders which need weekly repayments!
One of the problems with short term loans is the loan structure in itself in terms of high interest rates. Since the eligibility criteria is minimal when compared to a classic working capital loan, business owners may be tempted to go for a short term loan. However, if the business owner does not have a solid plan in mind for the loan repayment, they will be subject to a catch-22 situation in which the interest rate has a telling effect on their finances, and they are never able to repay the principal.
Will your business be able to turnaround revenue in a quick manner, which will help you repay the loan with interest in the short term? As a business owner, you need to think through this before you for this type of business loan.
And then of course, the classic equation of not taking a loan to repay another loan applies very much to this loan. To summarize, the price that you end up paying for a short term business loan is usually much higher, and way riskier, irrespective of the bank or lending institution that you borrow from.
Confused? Disappointed? Get in touch with our team of loan specialists to get a FREE credit assessment done. Let us help you our with your short term loan requirement. Maybe you need a different, friendlier type of business loan, and maybe you do qualify for it. Let's find out!
Finnacle Capital Solutions seeks to contribute to the community and bring value to its customers by being a compelling financial advisory firm, while upholding the highest ethical values.
We would like our customers to enjoy exceptional services which is operated in a trust-centric and customer-friendly environment and devoid of complicated processes.
Finnacle Capital Solutions is a Singapore-based company providing financial advisory services to Small to Medium Enterprises in Singapore. Finnacle acts as an intermediary between its customers and lenders.