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Short Term Loans vs Medium Term Loans

Short Term Loans 

Operating and maintaining a successful business of any kind is a tough job. Despite the fact that you must develop and sell your products and services, you must also deal and keep up with your industry’s trends, seasonality effects depending on what you sell, employee training, marketing, expansion, equipment upgrades and repairs, bills, and much, much more.  Running into cash flow issues at one point or another is inevitable, and you may find yourself needing some working capital to get you out of the rut. Whether you need a short term loan to pump some money into your business’ bank account for new hire training, inventory purchases, unforeseen emergencies, payroll, or virtually anything else for your business, usually additional working capital can help with that, and it may come in the form of a Short-Term Loan. Let’s take a further look.

What is a Short Term Loan and How Does it Work?

Short-Term Loans are utilized as a way to fill immediate, short Term business needs or to fix cash flow issues. This type of loan doesn’t require a lot of paperwork, funds quickly, and can be used for almost any business purpose. Short-Term Loans are a great solution for purchasing inventory, emergency repairs and maintenance, filling gaps between accounts payable and receivable, and more. This working capital funding solution packs many pros, however, having a shorter repayment term also means having higher costs involved than traditional secured financing in a shorter term – generally collected via daily or weekly ACH payments. Nonetheless, Short Term Loans are still a very popular and appreciated working capital funding solution for small business owners in all industries.

What Does Your Business Need to Qualify?

The great thing about Short-Term Loans is that repayment terms are structured between anywhere from 3 to 24 months, and minimal documentation is needed to qualify! Here’s what is usually required:

  1.  Completed Application
  2.  4 months of most recent bank statements
  3.  4 months of most recent processing statements
  4.  Minimum of 2 months in business
  5.  Minimum of $7,500 in monthly revenue

Do You Need to Provide Special Financial Documentation?

To add to the benefits, approvals on Short-Term Loans can be generated in as little as 24 hours, with funding occurring in as little as 3 business days! Typically, if a loan request is in the amount of $75,000 or more, additional financial documentation such as your most recent business tax return, Profit & Loss sheet, and Balance sheet may be required (and sometimes a bit more: click here). Still very minimal paperwork compared to traditional loans obtained via big banks!

To learn more about Short-Term Loans, call one of our funding specialists here at Excel Capital Management at 877-880-8086 or APPLY NOW!

Medium Term Loans

What is a Medium-Term Loan and How Does it Work?

A Medium-Term Loan is one where you borrow money and pay it back via fixed monthly payments within a fixed term at a set interest rate. This type of working capital funding solution is especially ideal for business owners looking to build their business credit and those needing additional capital for growth and expansion.

What Does Your Business Need to Qualify?

Medium-Term Loans are structured between anywhere from 2 to 5 years. Here what’s needed to qualify:

  1. FICO score must be 680 or higher
  2. Annual Business revenue must be $500,000 or higher
  3. Minimum of 2 years of operating history
  4. 3 Years of Business Tax Returns
  5. 1 Year of Personal Tax Returns
  6. 6 Months of Recent Bank Statements
  7. Year To Date P&L and Balance Sheet on $200k loan applications
  8. Completed Business Debt Worksheet
  9. Shareholder Guarantor Form

How Can Your Business Use A Medium-Term Loan?

The possibilities are endless! The great thing about an infusion of working capital into use business via a Medium-Term Loan is that is can be used for almost anything to help with expansion and growth! Here are few way many business owners of all kinds use their working capital:

  • New Hires and Employee Training
  • Inventory Purchases
  • Additional Locations
  • New Hires
  • Employee Training
  • Equipment Purchases and Upgrades

To learn more about Medium-Term Loans, call one of our funding specialists here at Excel Capital Management at 877-880-8086 or APPLY NOW!