Unexpected expenses are inevitable for any type of business. Because you can’t foresee the future, you can never fully prepare for what lies ahead.
For this reason, short term loans in Australia are becoming an increasingly preferred option for businesses that have unexpected financial needs – whether it be for expenses or expansion.
One of the key benefits of short term financing is their fast turnaround.
Short term loan applications are more flexible, require less documentation to be compliant and have a considerably faster turnaround than traditional bank loans. Approval decisions are made extremely quickly and the loan processing is streamlined and efficient. Valuations are expected within 48 hours, and once approved, loan funds can be received on the same day.
For businesses, faster approvals mean immediate funding to quickly bridge payment issues and fund payment needs. For brokers, faster transactions means deals can close quicker and commissions can be obtained faster.
Financial troubles can easily cripple a business and, if not addressed immediately, can significantly affect their future operations. Through accessing short term financing businesses can relieve financial pressure as well as realise opportunities for growth and expansion. Rates that reflect risk don’t need to be excessive. There’s an increasing expectation that rates don’t exceed 1-2% per month in a typical short-term loan period of 1-6 months.
Writing short-term finance broadens the broker’s service offering, which equates to a greater revenue stream. At the end of the short-term loan period, refinancing is often required, providing ‘two bites of the cherry’.