Myths About Short Term Loans
My company has been helping small businesses since 2004. We are either saving clients from a financial disaster, or helping them take advantage of a major opportunity that has just come their way. Either way, all of our clients have been very glad to discover a finance company that can save the day by lending them money they need in just 24 hours.
But for every client we help, there is another small business person who has come to us needing funds by tomorrow, but doesn’t proceed because of the way they perceive the cost of a short term business loan.
Short term business loans are only for a term of 1 - 6 months
As such, interest is calculated at a monthly rate, not a per annum or annual rate. But so many people make the mistake of multiplying the monthly rate by 12 months, and then think the cost is too high.
Big Mistake!! While they are busy squabbling and procrastinating over a rate that they have miscalculated, or the perceived costs of a short term business loan appear to be higher than a home loan rate, they have either missed the big opportunity, or their business has suffered an ugly fate.
(Cost / Benefit Analysis) Put simply, when you look at a short term business loan, you look at the cost of the loan, and you look at the benefit that the loan will bring by getting the funds in 24 hours. It’s the good old Cost / Benefit Analysis. IF the benefit outweighs the cost, then GO FOR IT. It’s a no brainer.
The Bus V Taxi Example
One other way to look at it is by comparing a bus and a taxi. (show picture of a Melbourne bus and of a Melbourne taxi) A bus will get you all the way across town for $5…. BUT you have to walk to the bus stop, wait for the bus to come, hopefully find a seat to sit on for the next 2 hours while you meander up and down every street before eventually reaching your destination.
OR you can take a taxi or an Uber. It picks you up from your place when YOU want to depart, and it takes you straight to where you want to go in a quarter of the time as the bus. But it’s going to cost you $50.
If you are running late to get to an important meeting or catch a flight, does the extra $45 represent great value…. YOU bet it does!!! Short term business loans are exactly the same.
So the next time your small business needs urgent access to money, a short term business loan is the ONLY answer.
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