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Solve Business Problems With Short Term Loans

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By Author: Rajat
Total Articles: 10
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A business depends on capital investment. There are two types of capital needs- short term and long term. Long-term capital needs are usually taken care of from the beginning of the business project. It’s the short term finance or working capital that haunts many businesses so much to threaten its sustenance. It’s like a disease that can creep in without your awareness and infect your business venture. About 60% of start-ups fail due to such short term financial issues. And if you have started a business, then you are in a way bound to it.
How then do you save your business from short term financial perils?
Like any other disease, prevention is better than cure.
The best thing to do is to keep track of your business finance and accounts. Keeping your short term expenses in check will help you avoid it.
However, you cannot always predict everything as a lot of aspects depend on the market as well. Therefore, if a disease infects your business, then short term loans are the best cure.
Here are a few instances of financial problems that you can solve with short term sources of finance-
1. Temporary delay in shipment
The order that was supposed to reach today is undergoing a delay of two weeks. You have already paid for the order and the high demand has got you by your neck. The only way you can get inventory is by flight or buy from the local vendor, which will both cost you more. Taking a short term loan such as a quick loan will help you manage the situation.
2. Sudden increase in the cost of raw material
It’s your bad luck that the price just raised in the third month of your start-up. But you need them to sustain your business. Taking a short term loan for purchase at the increases cost can help you out. You can pay it off as you make the profits from it and your business is saved.
3. Large order
Your business is doing great and you have got a large order. The problem is the you will be paid once you have delivered it, which you sincerely want to, but are short on finances. Taking a short term loan from a secured lender will help you make the delivery and keep your business on the growth track.
4. Purchase of machineries
You product is being received well by the consumers. The demand is forcing you to increase your production for which you will need machineries. You don’t have enough cash for its installation. Again, a short term loan will serve the purpose better than no other.
5. Downtime
One of your equipment have are under downtime. The replacement or repair will cost you more than you can manage at the moment or you have already invested the money to expand. Take a short term loan to replace the equipment and in time, it will pay for itself and make you more money.
6. Cash flow problems
You have delivered the order but the payee is making unexpected delays. You need money to pay the workers or for the bills etc. A quick loan is the best solution.
7. Financial emergency threatening your savings
Someone in the family has fallen ill or a disaster has got you in a financial crisis. You don’t want to touch your savings for whatever reason. You can take a short term loan to manage the crisis and use the profits you make to pay it off. Your savings are intact.
8. Business expansion or acquisition
Expansion is a major stage of business. Many times it is only a small amount that makes a large difference in business expansion. Use a short term loan to manage the money and expand your business.
9. Marketing
You have a new product and you want to market it to the potential consumers. Best source of immediate funds for marketing is a quick loan.
There are several short term loans Australia lenders provide to suit specific financial needs of different businesses. Just do thorough research and try to avoid swindles.

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