In every endeavour that we take and every plan made, we’re always advised to think long-term. But it pays to also think short-term. When it comes to a business’ finances it can be beneficial to also think short-term.
Short-term business finance has long been helping a broad spectrum of companies remedy their cash flow problems, find solutions for unexpected expenses and continue business operations. Businesses have reaped huge rewards from these short-term solutions. They have proven to be more effective in certain circumstances and here are some reasons why:
They’re less stringent
Traditional lenders have tightened their belts and it has become increasingly difficult for businesses to borrow money. Lenders that offer short-term financing like caveat finance have a more flexible arrangement that’s proven to be beneficial for a lot of companies. Now, brokers can easily seek financing for their clients to assist them in making outstanding payments and to help with upgrades and business expansion.
They can be trusted
The stigma of rouge lenders is being diminished with the emergence of the NCCP legislation that protects Australian consumers seeking both personal and commercial financial solutions. The introduction of this legislation corresponds with an increased demand and rise of credible, professional and highly committed lenders. For brokers, this means they can now be assured of writing a compliant short-term loan, and to also receive competitive solutions from trusted financing companies.
They’re widely accepted
Short-term lending is now widely accepted not just in Australia but also globally – especially for SMEs. This means various businesses have seen and experienced the benefits of thinking short-term and brokers have accepted this as a reliable alternative to traditional lending.
They offer a quick fix that can benefit business long-term.
While financing like short-term 1st mortgages provide a quick fix for businesses’ immediate financial needs and problems, it can also create a ripple effect that can benefit them long-term. This short-term solution can serve as a bridge that can take their business to the next phase.
While businesses shouldn’t take their eye off the big picture and stop thinking of long-term plans for their company, they also shouldn’t turn their back on short-term solutions. Brokers will find that thinking short-term can be the right solution for their client.