When you’re beginning your research into financing for your business, there are a lot of items you need to consider. The most common question is ‘what type of loan should I get?’ There’s a myth out in the business world that it’s best to get the most amount of money for the longest payback period possible you can qualify for. This advice is not only misleading, but it can cause many businesses more hard than good. The most critical issue you need to sort out is, what exactly will you use the money for? And how long will it take to see any ROI from the money borrowed?
Short-term loans (less than 24-month terms) often seem a little scarier just by looking at the basic numbers than a longer-term loan, but they can be the right choice if your business will see the ROI from the monies borrowed within that term. It doesn’t make sense to take a five-year term on inventory you’ll sell (and see returns on) in 6 months.
If you’re thinking about business financing, take 6 minutes and 34 seconds from your day, watch this video below and learn all you need to know about short-term loans.
Don’t have time to watch the video now? Or just want some more details, use cases, and tips? Download this easy to read guide to short-term financing.