If you own a business or you intend to own one in the future, you know how important business financing is. Great ideas don’t fund themselves and an emergency does not vanish into thin air just by wishing it away.
In your personal life, I am certain there is a laundry list of things – from unexpected medical bills to home repairs – that can leave you needing money. More often than not, such financing has to be fast and easy to acquire.
That is what short-term loans are about.
What is a Short Term Loan?
As you’ve probably already guessed, short term loans are simply loans that have to be paid back in relatively shorter time – often between 90-180 days. Such loans are faster and easier to obtain. For instance, if you were trying to obtain a Small Business Administration (SBA) 7(a) loan, you’d have to wait several months while for a short term loan, you’ll only need to wait a few days.
If you are in a tight spot, here are three ways to approach taking short-term loans.
1. Ask Friends and Family
If you need a quick short term loan, asking friends and family for a loan is not a bad idea at all. More often than not, such loans are easier to obtain because of the preexisting relationship with people in your family and friends circle. However, loans from family and friends should not be handled carelessly just because friends and family are involved.
A loan agreement should be drawn up with specific agreements documented. Begin by contacting a potential lender with a clear plan of how much you need and soon you can pay it back. This will help the lender establish their expectations for being repaid. Be careful on defaulting on such loans or even promising to pay back within a time-frame when you know you can’t. When it comes to such loans, trust is the key.
2. Consider a Pawn Broker
There are over 10,000 pawn shops across the country. Pawn shops usually offer simple, collateralized loans to borrowers. In simple terms, this means that such loans are only given when the borrower provides valuable item as collateral. If the borrower is able to pay back the loan within the stipulated time, the item is returned. If the borrower defaults on the loan, the pawnbroker sells the collateral to recoup his expense.
The downside to such loans is that you might get a smaller amount as a loan. This is usually because pawnbrokers often deal with the market value of a product rather than the original retail price.
3. Loan Brokers
While it’s possible to go on a loan-searching spree yourself, it’s much easier to employ the services of online loan-brokers. Such companies can easily find a suitable loan option for you from the array of lenders they have. For instance, loanpigusa, a company with one of the largest lending panels in the USA, delivers short term loan offers in minutes!
Thankfully, the process for applying and obtaining such loans is pretty easy. All you have to do is to key in your details and wait for a response. The good thing about such loans is that they are not secured or held against an asset. Therefore, your assets will not be at risk although defaulting on such loans has consequences.
In Conclusion
We’ve all heard the dreadful stories: a business owner in need of cash opts for a short term loan only to default on payment and crush his/her business. Stories like that have left a sore taste in the mouth of some concerning short term loans. However, the loans have never been the problem; the problem lies with how people approach them and the methods they employ. Friends and family, pawnbrokers and loan brokers can help secure a quick short term loan for you.