We all know, after a covid-19 pandemic small businesses facing tough times. In recent times cash flow in the market also reduced and due to this, many small businesses closed down.
In this article, we are talking about how short-term credits can help small businesses.
What is short-term credit?
Short-term credit is a credit that is available for smaller times of duration like six months or one year.
Features for small business
Availability – In this credit loan, there is no big paperwork involved as compared to other Business loan proposals. This short-term credit is suitable for small businesses and is easy to access.
More Control – This loan offers you more control to use the loan amount as and when required, and pay interest only on the sum borrowed and there are no restrictions from lenders on how to use funds.
No fixed payment schedule – There is no fixed payment scheduled on credit loans. You can repay these loans as per your earnings and cash flow. Here you need to pay the full amount before the loan tenure.
More Interest cost – Because of higher flexibility in loans quick access to funds and no restriction on usage from the lender, a short-term line of credit is higher compared to other business loans.
The qualification process for short term credit –
- Maintain a good CIBIL score
- Your enterprise should meet the turnover requirements set lender.
- Provide accurate business information about your business.
Short Term credit good or bad?
As we mentioned early, pandemics hit hard on small businesses. The situation in the market is tricky so it’s all about the personal choice of businesses. Short-term loans can immediate loan needs.
If you are a small fruit seller or Ice cream shop owner then you need a big amount every six months. Therefore, to satisfy this seasonal financial demand short term, credit could be a good option.
If you are a small business owner then there is a platform like OfferMeLoan that offers free Loan consultancy to you so download OfferMeLoan (https://play.google.com/store/apps/details?id=com.offermeloan.app.offermeloan ) application where verified loan agents can help you with short term credit and Instant Loan.