{"id":341,"date":"2019-02-13T06:01:08","date_gmt":"2019-02-13T06:01:08","guid":{"rendered":"https:\/\/blog3.indifi.com\/?p=341"},"modified":"2024-02-28T11:46:21","modified_gmt":"2024-02-28T11:46:21","slug":"4-best-quick-short-term-business-loan","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/","title":{"rendered":"4 Best Types Of Short-Term Business Loans"},"content":{"rendered":"<div class=\"wp-block-image size-medium wp-image-555\">\n<figure class=\"alignleft\"><img decoding=\"async\" loading=\"lazy\" width=\"450\" height=\"300\" src=\"https:\/\/blog3.indifi.com\/wp-content\/uploads\/2019\/02\/4-Best-Types-of-Quick-Short-Term-Business-Loans-that-Every-Business-Owner-Should-Know-450x300.jpeg\" alt=\"4 Best Types of Quick, Short-Term Business Loans that Every Business Owner Should Know\" class=\"wp-image-555\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/02\/4-Best-Types-of-Quick-Short-Term-Business-Loans-that-Every-Business-Owner-Should-Know-450x300.jpeg 450w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/02\/4-Best-Types-of-Quick-Short-Term-Business-Loans-that-Every-Business-Owner-Should-Know-768x512.jpeg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/02\/4-Best-Types-of-Quick-Short-Term-Business-Loans-that-Every-Business-Owner-Should-Know.jpeg 800w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><figcaption class=\"wp-element-caption\"><em>4 Best Types of Quick, Short-Term Business Loans that Every Business Owner Should Kno<\/em>w<\/figcaption><\/figure><\/div>\n\n\n<p>Fast, short-term business loans are indeed a lifesaver. They provide your business with immediate funds to\u200a\u2014\u200abridge the gaps in your cash-flow, handle emergency expenses, utilise a business opportunity or for other emergency requirements.<\/p>\n\n\n\n<p>You can consider them as business loans, with a short-turnover period. You borrow what you need and pay it back quicker, compared to traditional term loans. <\/p>\n\n\n\n<p><a href=\"https:\/\/www.indifi.com\/short-term-small-business-loans\" target=\"_blank\" rel=\"noopener noreferrer\">Short-term business loans<\/a> help you meet your emergency cash expenses, without strapping you down in debt. You pay them in a shorter time-frame; thereby you can get back to concentrating on your business, without worrying about managing your debts.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Types_Of_Quick_Short-Term_Business_Loans\" title=\"Types Of Quick, Short-Term Business Loans\">Types Of Quick, Short-Term Business Loans<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Merchant_Cash_Advances\" title=\"Merchant Cash Advances\">Merchant Cash Advances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Line_of_Credit\" title=\"Line of Credit\">Line of Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Vendor_Financing\" title=\"Vendor Financing\">Vendor Financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Invoice_Discounting\" title=\"Invoice Discounting\">Invoice Discounting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Short-Term_Business_Loans\" title=\"Short-Term Business Loans\">Short-Term Business Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Benefits_Of_Availing_A_Short-Term_Loan\" title=\"Benefits Of Availing A Short-Term Loan\">Benefits Of Availing A Short-Term Loan<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/4-best-quick-short-term-business-loan\/#Meet_Your_Immediate_Business_Expenses_With_The_Right_Short-Term_Business_Loans\" title=\"Meet Your Immediate Business Expenses With The Right Short-Term Business Loans\">Meet Your Immediate Business Expenses With The Right Short-Term Business Loans<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_Of_Quick_Short-Term_Business_Loans\"><\/span>Types Of Quick, Short-Term Business Loans<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As a business owner, you should be aware of the four main types of short-term business loans. This helps you choose the right one based on your specific requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Merchant_Cash_Advances\"><\/span>Merchant Cash Advances<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Technically, merchant cash advances aren\u2019t a loan, but an advance. Here, you sell a portion of your business\u2019 future card swipe sales to the lender, to receive a lump sum to meet immediate fund requirements.<\/p>\n\n\n\n<p>The loan amount is repaid from your card machine swipes. The lender receives a percentage of your debit\/credit card revenues. This happens until you have<a href=\"https:\/\/www.indifi.com\/blog\/what-is-loan-repayment-different-options-types\/\"> repaid the loan<\/a> amount in full.<\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/merchant-capital-business-require-working-capital\/\">Merchant Capital \u2013 A Shot In The Arm To Small Businesses That Require Working Capital <\/a><\/p>\n\n\n\n<p><strong>Who is it for?<\/strong><\/p>\n\n\n\n<p> Works well for businesses that carry out the majority of customer transactions via credit\/debit card swipes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Line_of_Credit\"><\/span>Line of Credit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This short-term business loan works similar to a business credit card. You receive a regular credit limit, which you can use for meeting your immediate expenses. You repay the loan amount gradually over a period. <\/p>\n\n\n\n<p><strong>Did you know?<\/strong> Government launched another scheme for MSME owners i.e <strong><a href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/\">Vyapar Credit Card<\/a><\/strong>.<\/p>\n\n\n\n<p>Unlike a business credit card, <a href=\"https:\/\/www.indifi.com\/unsecured-line-of-credit-loans-india\">a line of credit<\/a> doesn\u2019t charge hefty fees for cash advances. Additionally, the approval process for a line of credit is easier and more relaxed compared to the stringent requirements of a line of credit. Also, you only have to pay interest on the funds that you use and not for your entire available credit.<\/p>\n\n\n\n<p><strong>Who is it for?<\/strong><\/p>\n\n\n\n<p>\u25cf Works well for businesses owners who have poor credit ratings and are looking to build their credit score.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Vendor_Financing\"><\/span>Vendor Financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Vendor Financing, also referred to as trade credit or supplier credit, is a valuable tool for cash flow management. With this arrangement, businesses obtain funds from their suppliers to acquire the products or services offered by the lending vendor.<\/p>\n\n\n\n<p>One notable advantage of vendor financing is the absence of interest payments unless the debt remains unpaid past the agreed-upon due date. This makes it an attractive short-term financing option for businesses, allowing them to effectively convert the cost of goods into sales.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Invoice_Discounting\"><\/span>Invoice Discounting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Very often, businesses struggle with cash flow because clients take anywhere around 45\u201390 days to make the payment. For immediate finances, you can raise an invoice with your client and share the invoice details with your lender. <\/p>\n\n\n\n<p>The lender then pays you around 90% of the invoice amount, which you can use to meet your immediate expenses. Repay the lender, once the client makes the payment.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/business-loan\"><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/01\/Quick-Business-Loan-with-Low-interest-500x91.jpg\" alt=\"\" class=\"wp-image-6694\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/01\/Quick-Business-Loan-with-Low-interest-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/01\/Quick-Business-Loan-with-Low-interest.jpg 716w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/figure><\/div>\n\n\n<p>Your invoice acts as your collateral, so you don\u2019t have to show any other assets to your lender. Also, you get access to funds immediately, once you raise the client invoice.<\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/manage-cash-flow-small-business-owner\/\">All That You Need To Know To Successfully Manage Your Cash Flow As A Small Business Owner<\/a> <\/p>\n\n\n\n<p><strong>Who is it for?<\/strong><\/p>\n\n\n\n<p>\u25cf Ideal for businesses, that has clients taking a long time to pay.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Short-Term_Business_Loans\"><\/span>Short-Term Business Loans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As the name implies, this is a straightforward business loan. The only difference is that it\u2019s a condensed version of a traditional business loan. You receive a lump sum, which you can use to fund your business expenses. You then pay off the loan, along with interest, over a short schedule.<\/p>\n\n\n\n<p><strong>Who is it for?<\/strong><\/p>\n\n\n\n<p>\u25cf Works well for businesses that require a large sum of money, compared to the other short-term business financing options.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_Of_Availing_A_Short-Term_Loan\"><\/span>Benefits Of Availing A Short-Term Loan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Here are few benefits of short-term loan.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Fulfil&nbsp;working capital needs<\/strong><\/td><\/tr><tr><td><strong>Hire skilled staff<\/strong><\/td><\/tr><tr><td><strong>Restock inventory<\/strong>&nbsp;<\/td><\/tr><tr><td><strong>Office space renovation<\/strong><\/td><\/tr><tr><td><strong>Expand&nbsp;operations<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meet_Your_Immediate_Business_Expenses_With_The_Right_Short-Term_Business_Loans\"><\/span>Meet Your Immediate Business Expenses With The Right Short-Term Business Loans<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unlike regular loans that involve mountains of paperwork and months of waiting, short-term business loans availed at digital lending platforms like Indifi are quick, hassle-free and easy. It has a simpler approval process and can help you access funds within a week, or at times, even within a day.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-1\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-green-cyan-background-color has-background wp-element-button\" href=\"https:\/\/www.indifi.com\/short-term-small-business-loans\"><strong>Apply for Short Term Business Loan Online<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fast, short-term business loans are indeed a lifesaver. They provide your business with immediate funds to\u200a\u2014\u200abridge the gaps in your cash-flow, handle emergency expenses, utilise a business opportunity or for other emergency requirements. You can consider them as business loans, with a short-turnover period. You borrow what you need and pay it back quicker, compared [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[26,90,91,100,79],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/341"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=341"}],"version-history":[{"count":20,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/341\/revisions"}],"predecessor-version":[{"id":7887,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/341\/revisions\/7887"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/555"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}