Business Term Loans
A Business Term Loan is a fundamental type of business loan that offers attractive rates and terms for borrowers. With this loan, a borrower receives a lump sum of money from a business lender like lightning Funding Solution, which is repaid with regular payments over a set period. The principle amount can range from $5,000 to $5 million, and interest rates start at 5%. While Term Loans offer high borrowing amounts and excellent terms, eligibility requirements can be restrictive.
How to Get the Best Terms and Rates
A lightning strike wipes out a majority of your business’ computers. Your food truck’s transmission is kaput. An unexpected business opportunity lands at your door but requires quick financing. Your inventory is depleted due to higher-than-expected demand. There are many reasons to secure short-term business loans, and even more reasons to choose Lightning Funding Solutions when you need quick access to working Lightning Solutions.
Since 2014, Lightning Funding Solutions has helped nearly 4,000 small and medium-sized businesses acquire over $500,000,000 in financing. We love small businesses and are proud to maintain an A+ rating through the Better Business Bureau®.
Are you looking into how to secure the best terms and rates on a short-term business loan? Read on to get the facts from an insider’s perspective
No waiting. Zero brokerage fees. Instant pre-approvals.
5 minutes is all it takes to apply and get pre-approved for a short-term business loan up to $750,000. By working with a licensed direct lender, you won’t have to wait weeks to learn about the status of your application (or pay brokerage fees). Apply for a short-term small business loan through Lightning Funding Solutions.
Current rates and terms
A business loan consolidation can bring much-needed relief to small businesses bogged down by multiple loans or debts. Many businesses love the convenience of making a single monthly payment instead of multiple payments staggered throughout the month.
While the terms of a business loan consolidation are often more flexible, you might end up repaying your debts at a higher interest rate if your credit score has taken a hit due to late payments or maxing out numerous lines of credit.
Here are the latest rates and terms for small businesses looking to secure rapidly funded working Lightning Solutions:
Loan Amounts
$2,000 – $750,000
Term Duration
90 days to 18 months
Interest Rates
10% APR and up
Fast Approvals
Usually within 48 hours
If you have “good” to “excellent” credit, you may also qualify for a long-term or SBA loan through Lightning Funding Solutions.
How to qualify
As a direct lender, Lightning Funding Solutions has more flexibility in terms of lending to business owners who may otherwise not qualify for a loan through a traditional lender.
Who Qualifies for Business Term Loans?
Here is what we look for in approval short-term business loan applications:
- At least 6 months in business
- $150,000 in annual revenue
- FICO® score of 500 or higher
- 3 months of bank statements
That’s it. That’s all you need to start the process and get pre-qualified for a short-term business loan through Lightning Funding Solutions. Compared to traditional financial institutions, Lightning Funding Solutions gives more weight to current and projected revenues than credit scores alone.
Even if your credit score has kept you from obtaining a business loan in the past, we may still be able to help you obtain rates and terms that perfectly align with your business goals.
I have bad credit. Can I apply for quick business funding?
Life happens. At Lightning Funding Solutions, we know there are two sides to credit; it can either help you secure great rates and terms — or squash your financing ambitions. You may have missed credit payments in the past, or a past bankruptcy continues to haunt your credit years after the fact. We’re here to help. Business owners with credit scores in the area of 450 may still qualify for quick business funding so long as the business has documentation showing $15,000 in monthly revenue, and solid revenue growth.
Seeking a loan when you have bad credit may delay the process a few days, and you may not qualify for the same rates and terms enjoyed by those with good credit. But, taking out a business loan and keeping up with the payments can be a great way to restore your credit and finance your business.
If you have a problematic credit history and would like to learn more about which loan product is best for you, call Lightning Funding Solutions at (855) 952 -2383. We have lending specialists on hand to answer your questions and make recommendations.
The benefits of working with a direct lender
Many small business owners love the fact that they can apply and be approved for a loan the very same day. And, by financing your business through a direct lender, businesses have access to loans with more reasonable terms and rates than they would typically receive from a traditional lender.
The benefits of going through a direct lender for this type of loan include:
- Fast access to working Lightning Solutions
- Minimal paperwork
- Flexible repayment terms
- Generous loan amounts
- Low rates compared to other quick loans
Are there any detractors?
Of course. All loans come with their own set of positive and negative qualities. So, no matter which loan you ultimately choose there are bound to be some drawbacks, and this still holds true with short-term loans. Short-term loans usually come with higher interest rates compared to loans with longer terms.
And, if you operate a business with seasonal revenue highs and lows, you may find it difficult to keep up with the fixed repayment structure during off-peak seasons. Not sure if a short-term business loan is in the longer-term interest of your business? Call Lightning Funding Solutions and speak with a lending specialist to discuss other options that may be open to you.
How to get the most out of your short-term business loan
1. Replenishing inventory
Let’s say a customer requests a bulk order of a certain product. They can pay for the items once they arrive in four weeks. But, the supplier doesn’t offer net 30 payments or credit of any kind — only payments in full. As it is, this product has a 200% markup and you extend a 10% discount to the customer since they are buying in bulk. Without taking a loan, it would be nearly impossible to fund this inventory purchase out-of-pocket. By securing a short-term business loan, you can pay your supplier upfront, the customer receives the products they ordered, and you have the money to pay off the loan and keep a decent amount of money as pure profit.
2. Upgrade or repair equipment
A business plan is only as strong as its weakest link in the chain. If you find that a certain piece of machinery, equipment, or infrastructure is causing money-losing inefficiencies in your business, securing a loan with a shorter term may be a great option. This loan type allows you to receive funds quickly so you can being seeing returns on your investment as soon as possible.
3. Promote your business
Short-term loans are not designed for those taking their first leap into the business world. But, if customers are raving about your products or services and one of the few things holding your company back is a lack of exposure, you may want to consider a loan to finance promotional opportunities. Plus, many advertising and marketing expenses are tax-deductible.
4. Covering seasonal peaks and slumps
Many businesses face seasonal ups and downs. A retailer may suddenly remembers selling out a certain good the year prior, and wants to make an additional inventory purchase. Or, due to an unexpectedly rainy spring, the grass is growing faster and a lawncare provider needs to hire additional staff. These are a few instances where a short-term loan can cover a short-term need, without causing undue financial hardship on the business owner.
5. Expand operations
Depending on the nature of the business, a short-term loan can also be used to finance a business expansion. Just be sure that your expansion plans can begin generating profits before the term of the loan is finalized, otherwise, you may find yourself upside-down on the loan and have difficulty making payments.
Those considering expansions into multiple markets over the course of several years are generally better off going with a long-term loan.