When you’re running a small business, there is a multitude of events that could spur the need for extra funds. If your business has the cash flow, it’s often more affordable and beneficial to choose a short-term loan over alternatives.
Deciding between loan options can be tricky, especially if you don’t have an extensive knowledge of APRs, interest or payment plans. While some companies push options that seem appealing, there are many pitfalls and hidden fees that may lead to constant headaches for small business owners. A longer loan may appear to be the most appealing option, but opting for a short-term business loan from RapidAdvance may be the most cost-effective in the long run.
Taking a look at the numbers
Short-term loans allow business owners a sum of money and a set period of time to establish their brand, get their gears in order and further develop an operational organization. This is an ideal option for managers who need a bit of money to keep their businesses going, but don’t need or qualify for a large loan from a bank. These options require you to pay back the loan relatively quickly, but they do not charge the same astronomical interest rates many competitors do.
For example, if your business takes a $50,000 loan from RapidAdvance, it will accrue 0% APR throughout its lifespan, whether it be four or 12 months. With a peer-to-peer financing lender, however, it would gather a 26% APR in this time. The required monthly payment may be higher with a small business loan from RapidAdvance, but the total interest may be significantly less. In the same instance, a $50,000 loan would gather only $17,500 interest over the course of 12 months. With a peer-to-peer option, however, that figure would read $39,821 – nearly 80 percent of the overall financing cost.
Tailoring your loan to your needs
Your small business loan from RapidAdvance can be tailored to specifically address your direct needs, whether you need the funds to cover the purchasing of equipment or development of company departments. Speaking with a representative from RapidAdvance is the best way to examine your options and choose the right path for moving forward, whether your business and capabilities are best suited for a four- or 12-month loan period. Request a free quote or call a representative today at 877-GO-RAPID.