Business Grows When Cash Flows

5 Major Benefits of Short-Term Business Loans

While many small businesses owners may overcome the hurdle of achieving initial funding, they soon run into another roadblock in the form of a lack of working capital to cover the expenses of daily operation. In simple terms, working capital is what your customers owe you plus your current assets and cash minus what you owe your suppliers and employees. From payroll to marketing costs, businesses need a continuous supply of working capital in order to stay afloat and focus on future growth.

While some small business owners may turn to their own financial resources to meet these needs, doing so can be risky and can tie up a considerable amount of funds within your businesses. Alternatively, in many cases, a much better option is to pursue a short-term business loan. Also known as “working capital loans,” short-term business loans are specialized loans which are designed to help you meet your business’ everyday financial needs and can be used for nearly any purpose.

Advantages of short-term business financing include:

  1. It can help you prepare for emergency expenses: Even the most prosperous businesses with massive amounts of fixed assets can find themselves in trouble if they are unable to keep up with their monthly bills. Through short-term financing, you can reduce the pressure on your company and avoid making late payments to creditors, saving your business’ credit rating.
  2. You can maintain ownership of your company: While equity investors provide funding in exchange for a large portion of your company’s ownership, borrowing from a bank or independent lender will allow you to gain the capital you need without sacrificing your decision making power. Although you must still make your payments to your lender on time, your obligation to them ends there.
  3. You do not need collateral: Many working capital loans are unsecured, meaning that you will not need to front any collateral in order to be approved. Generally speaking, small businesses with a very good credit history are far more likely to be approved by a bank for an unsecured short-term financing loan, though independent lenders may still sometimes approve businesses with less-than-stellar credit.
  4. Shorter terms: As their name suggests, short-term business loans are designed to assist your business with immediate problems. You will not have to plan for years of payments to pay back what you borrow.
  5. Quick approval: When your business needs money quick, you cannot afford to endure a lengthy application and approval process only to find out that your request has been denied. Working capital loans avoid the hassle of traditional bank loans and can help you get the money you need almost immediately, oftentimes within a week of applying.

Get Cash Fast with Green Ocean Solutions

If your small business is in need of a short-term injection of capital to meet your expenses, look no further than the Los Angeles small business lenders at Green Ocean Solutions. With quick approval in as little as 24 hours for loans up to $800,000, we can help you find the tailor-made funding solution you need with a repayment plan that fits your business.

Apply online or call (888) 997-2179 today to find out more about our services.