Title: The Disadvantage & Advantage of Short-Term Financing | Budgeting Money - The Nest
Headings: The Disadvantage & Advantage of Short-Term Financing
The Disadvantage & Advantage of Short-Term Financing
Lower Interest Rates
Lines of Credit
Use of Alternative Lenders
Increased Risk and Costs

Content: The Disadvantage & Advantage of Short-Term Financing | Budgeting Money - The Nest
The Disadvantage & Advantage of Short-Term Financing
How do I Get a Short-Term Unsecured Loan? If you have a small business, you might find yourself short of cash from time to time. You might also have ambitious plans to grow your business. Either way, one way to get the money you need is to borrow it. A short-term loan is repayable within a year, whereas a long-term loan isn’t due for more than a year and perhaps much longer. Lower Interest Rates
Short-term interest rates are usually lower than long-term ones. You therefore pay less interest for a short-term loan because of both the lower interest rate and the shorter amount of time you’ll be paying interest. Short-term loans can be faster to obtain if they are relatively small, as they often are, because lenders do less underwriting (that is, evaluating your creditworthiness) for small loans. These loans can be used to plug cash shortages resulting from unexpected expenses, sales shortfalls, seasonal effects or other reasons. Lines of Credit
Frequently, businesses set up lines of credit that allow them to borrow money quickly when it's needed and then pay it back at their own pace.