Applying for a Short Term Business Loan can be a real headache. For a small business owner needing cash in a hurry, the loan application process can be long and arduous.
But short term finance is an essential tool for any small business – without sufficient cash flow, a business almost certainly will fail. And almost every business struggles with cash flow issues at some point.
Luckily there are options available to small and medium sized business owners requiring short term business loans in a hurry.
Traditional Short Term Business Banking Loans
South Africa’s major banks all offer a range of loans for businesses. They can offer short term and long term loans, as well as specialised loans for equipment and vehicles.
But applying for a business loan through a bank takes a long time – two months on average. If you’re wondering if you can visit your bank’s website to apply for short term loans online, the answer is probably no. Banks generally have a lengthy application process with many stringent requirements. You will need to fill in an application and submit it together with supporting documentation and information. Many banks require business plans, financial statements tax records and even financial forecasts.
Once all your documentation has been submitted, the process has just begun. You will normally need to wait around two months before you find out whether or not your application has been approved or not.
If your application is successful, you will have to wait a further period of time before you receive your funding. Obviously, this is not ideal for a business owner who requires a short term loan to solve an immediate cash flow problem.
An alternative to the short term business loan: financing from Bridgement
Introducing an alternative for business owners looking for a short term loan that provides immediate cash.
Bridgement’s financing solutions are changing the way businesses apply for short term financing in South Africa.
What sets Bridgement apart is their innovative online application process. With Bridgement, you can apply for a short term loan online, in no time at all. There are no complex forms to fill out, and no supporting paperwork is needed. You apply in under 2 minutes and get an answer within 24 hours.
Bridgement offers short term business loans of up to a million Rand – but they also offer much smaller loan amounts, starting from R10,000.
What are the costs on a short term business loan?
For a traditional loan from a bank, you will be charged an interest rate based on a number of factors including your creditworthiness and the amount of collateral you have. You may also be charged other fees including:
– a loan application fee,
– monthly account charges, and
– early settlement penalties.
When it comes to a Bridgement finance facility, interest rates are based on the quality of your business and its financial health, with monthly fees starting from as little as 1.7%. There are no additional fees, and you’ll know exactly how much you’re paying upfront. It’s completely pay-per-use so you won’t pay anything if you’re not using your facility. In fact, Bridgement even rewards you with an early settlement discount if you choose to repay your loan early.
How long is a short term business loan repayment period?
Most short term loans have a repayment period of between one to six months. Bridgement business loans have a repayment period of up to 3 months to assist businesses with short term cash flow and working capital needs.
How to get a short term loan
To apply for a short term business loan you could approach a traditional bank – just bear in mind that the application process takes a long time. A great alternative is financing from Bridgement. Apply for financing in under 2 minutes and access funds within hours, find out how it works.
Apply online right now. You can apply right now for finance from Bridgement in under 2 minutes. There’s no fee to apply, and once you’ve been approved, you are under no obligation to lend any money. So try it out right now and see how much you qualify for.
