Emergency Business Loans
It happens from time to time, and it can affect just about anyone. Cash flow shortfalls are just part of doing business, and while they do not reflect your overall strategy or business potential, they do have a tendency to throw short-term plans into disarray. To keep these temporary shortfalls from having more permanent effects on your company’s trajectory, it is important to have access to a source of emergency business loans.
Depending on the type of shortfall and the time you expect to need in repayment, there are a variety of options available to deal with the situation. If you are lucky enough to have resourceful personal contacts, for instance, you might be able to tap into your private social networks to find friends and family who can loan you the cash to get through. Otherwise, exercising your personal credit lines can also give you a way to fund your business for a short time without too much paperwork or risk.
If repayment might take a little while, or if your financial need is greater than those means will support, then it can also be worthwhile to look into revolving credit lines, signature loans, and other short-term products from the bank you deposit with. Banks that work with small companies are familiar with the demand for emergency business loans, and they often have credit-building opportunities to fill that niche, such as revolving credit accounts. These methods can take a little while to set up, but for smaller amounts with shorter repayment periods, they do tend to go faster than a major business loan.
When the need for cash is serious and the crisis might take some restructuring and planning to accomplish, it can also be worthwhile to look at Small Business Administration loans. SBA loans are designed for companies with a demonstrable need and a clear plan for the money, and they are designed with favorable terms and interest rates, but they are not a short-term borrowing solution. Generally, SBA loans are designed to take years to pay off, but they are low enough cost that it should be feasible to meet the payments and even to pay them off early with a sound business plan.
Of course, there are also other opportunities available for companies that periodically face cash shortfalls due to the need to extend credit to customers, business cycles with lengthy off-seasons, and for other reasons. In those cases, it can be worthwhile to look at options like merchant cash advances and receivables financing, which can provide short-term cash to your company with very little risk as long as certain conditions are met. Both of these emergency business loans are designed for niches that conventional loans do not always fit well, and they are worth considering in any plan for a highly cyclical business. Whichever way you go, there is a good fit waiting for you.