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Everything to Know About Short-Term Business Loans

You need extra cash to expand your business’s operations, or perhaps you’re experiencing disruption to your cash flow. Regardless of the reason, short-term business loans can help you get the cash you need. Here’s what you need to know.

A Short-Term Loan Isn’t Necessarily for Emergencies

It’s a common misconception that short-term business loans are only for businesses experiencing financial problems. While you can use a loan to catch up on your bills or pay your suppliers, a short-term loan can be an excellent option to utilize an opportunity for business growth. 

Maybe you have the option to host a large, potentially profitable event, or you might have the chance to pre-order a product anticipated to soon be in high demand. A short-term business loan ensures that your business has the financial ability to take advantage of business opportunities that can help you grow and expand your operations. 

Short-Term Loans Can Be More Affordable Than Long-Term Loans

Generally, short-term business loans have higher interest rates than long-term business loans. However, it’s important to look past the interest rate or even the APR (annual percentage rate) when deciding if a loan is a good option. 

For example, assume you borrow $10,000 at an APR of 50 percent with a term of 3 months. The loan will cost you a total of $10,844.67, with interest equaling $844.67. 

Now, assume that your $10k loan has an APR of 20 percent and a term of 4 years. Your total loan cost is $14,606.57, with an interest cost of $4,606.57. Even though the interest rate is lower, the long-term loan is significantly more costly. 

Our Signature Loan is an Excellent Option for a Short-Term Business Loan

At Dollar Loan Center, we offer a product known as a signature loan. Our signature loans have no application fee, and we can approve and fund your loan in under 30 minutes.

You won’t have to worry about missing out on a hot business deal because you’re short on cash. Other loan options can take weeks to be approved. 

There are no prepayment penalties, and you only pay interest for the length of time you have the loan. There’s no minimum interest expense; if you only have the loan for three days, you’ll pay three days’ interest. 

Our signature loan offers payment flexibility. Make the minimum payment if you want to keep cash on hand, pay your loan off all at once to lower your interest expense, or adjust the payment, so it’s suitable for your business’s financial situation. 

Ready to apply for your short-term business loan? Call Dollar Loan Center at 866-550-4353 or apply online today!