How are Short-Term Loans Useful for Small Business Owners?

As a small business owner, you may find yourself needing extra money to help your business grow, change or even stay afloat. Getting the money you need doesn’t have to be hard, especially if you have the option to take on a short term loan.

At Hodgestone Finance, we specialise in helping our clients find the perfect lender who can provide short term loans that are ideal for small businesses needing a quick injection of cash. You might not think you’ll ever need one, but it’s important to have an idea of how these types of loans can help you in the back of your mind.

Here is what you need to know about short term loans.

How a Short Term Loan with Hodgestone Finance Works

To apply for a short term loan with our help, you need to get in touch with our team to discuss factors like the amount of money you need, interest rates and the timeframe you’ll have to pay the money back.

Once we have that information, we’ll reach out to our network of private commercial loan lenders to find the most suitable one for your needs, then connect you with a representative.

It’s that easy!

Hodgestone Finance are the brokers you can trust for short term finance in Sydney, Melbourne and across Australia.

The Benefits of Short Term Loans for Small Businesses

If you aren’t sure about how a short term loan could help your business, consider the following points.

Capitalise on sudden business ideas and opportunities

In the world of business, owners and workers who are in the loop of their sector will be aware of events and opportunities that they can capitalise on. But sometimes, you won’t always have the cash on hand to do so!

Short term loans allow you to take advantage of sudden opportunities that arise–rather than having to scramble for cash or miss out entirely, the money from your short-term loan will be injected into your account quickly, allowing you to make the most of whatever it is that has caught your eye.

This case study is an example of how a short term loan can help you seize a sudden opportunity!

Hodgestone Finance assisted a client in northern NSW seize a business opportunity with the help of a short term loan.

The client had acquired a development site through an option that needed to be exercised within one week, otherwise they would lose the site and all the option payment they had made up to that point.

Hodgestone Finance successfully facilitated a short term funding solution secured against the purchase property, plus a caveat registered over an existing asset, thereby enabling the settlement to take place within a week.

The short term loan facilitated by Hodgestone Finance allowed the client to settle on the purchase property in time, so that they could continue their expansion and develop the site. Had it not been for the short term loan, the client would not have been able to seize the business opportunity, and would have lost the money they had already contributed.

Manage any gaps in your cash flow

Even the most profitable big businesses may occasionally experience a lull in their cash flow, but as a small business, you might not always have the extra funds available to keep your company afloat during these times.

It might not be because your business is failing in any way–sometimes, you might just have expenses that all need to be paid at once. Or perhaps your customers or clients have had to delay their payments to you for their own reasons. Either way, you don’t want to have to dip into your business’s accrued funds to help bridge these gaps.

A short term loan means you’ll have the funds you need to keep your business running and meet all of your financial commitments without stress.

Boost a low credit score with a small loan

If you are a new business, you probably won’t have much of a credit history. While not having a bad history is a good thing, having no history at all can make it hard for big lenders to see you as a safe bet for any sort of sizable loan.

This is where smaller, short term loans can help. By taking out short term loans and making your repayments on time, you can showcase that you are fully capable of taking on larger loans. This can make getting larger loans much easier in the future, as well as helping you negotiate for a better interest rate, too.

A positive credit record will stay with your business for life, so set yours up for success from the start with small, safe, short term loans you can repay.

Meet your short term goals on time

If you have a need or goal you want to reach quickly, a short term loan can be the easiest way to make it happen. You might want to expand your business, buy and sell a new range of products or just top off your inventory stock before a busy season–either way, a quick injection of money will help.

A short term goal is flexible enough and can be altered to meet your short term needs, unlike a more traditional, longer-term loan. A short term loan has a short cycle, meaning you can get the money, use it as needed and then pay it back–you won’t be locked into a substantial commitment with your lender.

Meeting small goals will help grow your business quickly and lead to larger victories down the line. Utilise the flexibility and useful timeframe of short term loans to achieve this!

What Other Loans Should Small Business Owners Look Into?

At Hodgestone Finance, we can connect you with lenders who offer all sorts of useful commercial loans perfect for large and small businesses alike. We can help you organise:

• Full doc business finance - meaning ‘full documentation’, these loans are typically larger, hence why they require a full suite of documentation on your part. These documents can include tax returns, bank statements, payslips and asset evidence. The tradeoff for all this effort will usually be lower interest rate and better terms.
• Low doc business finance - these types of loans don’t need as much documentation, usually only a business activity statement and an accountant’s statement. They are ideal for smaller businesses or new businesses that don’t have a lot of existing documentation or history.
• Non-conforming business finance - these types of loans, also known as ‘no doc’ (no documentation) loans, are handy for startup businesses and self-employed individuals who won’t have any initial documents at all. They have the highest interest rates out of all the business loan types.
• Private lender business finance - private commercial loans are faster, easier to get approved and more flexible in their repayments. Using our network, we can connect you with the right private lender for your business needs.
• Bad credit loan options - having a bad credit score can lock you out of more traditional lending options. As commercial loan brokers skilled in assisting businesses with low credit scores, we can help you find the right loans to help boost your score and strengthen your position with larger lenders for the future.
• Vehicle loans - if your business will require the frequent use of vehicles, then you should look into a vehicle loan. From single vans to truck fleets, these loans are designed to make it easy to pay off the loan as you use your new vehicle. Use them for vans, trucks, cars, trailers and more!

To further explore our range of commercial loan services, please explore our website or get in touch to speak with one of our representatives.

You Can Rely On Hodgestone Finance as Your Commercial Loan Broker

As one of the premier commercial loan brokers across the country, Hodgestone Finance is ready to help any small business in need of a flexible short term loan. We can connect you with trustworthy lenders who can offer you private commercial loans perfect for getting your business off the ground, keeping it afloat or helping it to expand.

Start the process now by calling us on 1300 463 439, or use our online form to contact us and get a quote. We have offices in Melbourne’s CBD, the Mornington Peninsula and up in Sydney as well, making it easy to get in touch in person when you need to.