What is Short Term Financing?
Short term financing, also known as bridging financing, primarily refers to loans that are given to borrowers for a period of up to 12 months. These loans are commonly sought after by businesses that require a quick injection of cash flow.
Some reasons why a company would get short term financing include:
- Long-term projects – If a business has taken on a long-term project that requires an initial cash outlay of more than they currently have available in cash flow, short term financing is ideal. The company will then be able to pay off the loan once the project is completed and the client has paid them.
- Startup/expansion – If a business is in the process of starting up or expanding their operations, short term financing may be used to boost the cash flow until the start up or expansion is completed.
- Tax debts – If at the end of the financial year you have taxes owed and not enough ready capital to pay, short term loans give you breathing space to pay off the money slowly as revenue comes in.
- Renovations – If the business premises require an overhaul, whether for aesthetic purposes or for OH&S, some businesses choose short term financing as an alternate option to dipping into the company’s capital or having to wait until enough money is saved up.
The majority of short term finance loans are secured on property, as this is considered an appreciable asset and creates a higher level of security for the lender.
There are many advantages to using a private lender over a traditional financial institution for your short term loan needs. Here at Easy Settle Finance we offer businesses strategic funding solutions without the red tape you would have to deal with at a bank. We also provide all of our clients with funds of our own or from an exclusive pool of private investors, which means that you can be assured of no hidden