Short-Term Business Loans
When many business owners think of business loans, they think of a traditional 5-10 year term loan from their local bank.
In recent years, however, short-term business loans have become an increasingly popular tool for business owners to quickly take advantage of opportunities and handle obstacles that may come their way.
For example, sometimes inventory is only available at a discount for a limited time, or marketing opportunities can be time sensitive. Sometimes, business owners just need breathing room while waiting for clients to pay. In these cases, getting a short-term business loan is often a better option to taking a loan with multi-year repayment – If you turn your inventory in 3 months, you don’t still want to be paying for that inventory in 3 years.
And, short-term financing typically has higher approval rates than long term bank loans.
OnDeck offers short-term small business loans with 3-month to 36-month terms for $5,000-$500,000. We also offer automatic daily payments to pay down your short-term small business loans principal faster in smaller daily payments, rather than one large amount at the end of the month when other bills come due.
Building your Business Credit
Short-term business loans can be helpful in building your business credit. Unlike a merchant cash advance, OnDeck short-term loans are reported just like bank loans to the business credit bureaus.
Short-term small business loans also allow you to qualify for larger loans and longer terms at a later date. If you can successfully pay off a 6-month loan, this helps you to qualify for a larger loan and a longer 12-month term should you ever need to borrow again.