Many small to medium enterprises are opting for short term business loans due to the convenience and flexibility they provide. When your business falls on hard times, however, it’s understandable that you will need your funds approved in as little time as possible to help you get back on your feet.
Thankfully, we’re going to tell you how you can get a short term business loan within 24 hours. This will help your small business to gain the quick injection of cash it needs to survive.
The Benefits of a Short Term Business Loan
Short term business loans pose many benefits over their long term counterparts. We’ve listed these below.
- Short-term financing allows you to reduce the pressure on your company and avoid making late payments to creditors (therefore saving your credit rating).
- Many short term business loans are unsecured, meaning that you will not need to front any collateral in order to be approved.
- Short-term business loans are designed to assist your business with immediate problems. You will not have to plan for years of payments to pay back what you borrow.
Alternative Lenders are the Answer
Gone are the days of bank-only business loans. More and more small businesses are now turning to alternative lenders to provide them with short term business loans within as little as 24 hours.
An alternative lender (also known as a non-traditional lender) is essentially a company that is aiming to disrupt the traditional model of business financing. They do this by utilising technology and real-time data to make the process of applying for a loan and acquiring funds much easier.
Here at Lumi, we’re proud to be an alternative lender shaking up the fintech industry.
Make Sure You Qualify
If you want to take advantage of the fast business finance that an unsecured short term loan provides, then you’ll first want to make sure that you qualify. While every lender is different, the following are an example of our minimum requirements for applicants. To be eligible to apply for a short term loan with Lumi, we simply ask that you have the following:
- An ABN / ACN
- At least 6 months in business
- A minimum gross annual turnover of $50,000
Access Our Short Term Loan Calculator
Our easy-to-use loan repayment calculator lets you select your desired short term loan amount and repayment period, so you can see what your weekly repayments will be before you apply for the loan. This gives you a clearer picture of what you can expect from your short term loan from Lumi, including no hidden costs or surprises.
How to Apply for a Short Term Business Loan
Once you’re ready to apply for a short term business loan, simply head over to the Lumi website and begin your application. You’ll just need the following information on-hand:
- Driver licence
- Credentials for your online business bank account
Alternatively, you can speak to a member of our customer sales team by calling 1300 00 LUMI.
Tips for a Successful Short Term Loan Application
In order to increase your chances of short term loan approval, there are some practices you can put into place.
Only apply if you qualify
It can be tempting to apply for a short term business loan if you almost (but not quite) meet the lender’s requirements, but we’d advise against this. If you fall short of their minimum required annual turnover or length of time within business, then we recommend that you just hold out a bit longer, if you can.
Know your credit score
While alternative lenders don’t place as much importance on your credit score as traditional lenders do, they still usually have a minimum benchmark that needs to be met. If you already have knowledge of your credit score, then you’re in a good position to know whether you stand a good chance at approval or not, before you apply. You can check your credit score for free once per year through Equifax.
Have your required financial documents on-hand
Your lender may also want you to show the financial data of your business, including a record of your profit and loss, your costs and your current debts and assets. Have these readily available to speed up your application’s process and you increase your chances of getting a short term loan within 24 hours.
Have an effective business plan
While a lender may not ask for your business plan, having one on-hand can assist with your application. It shows that you’re serious about your business and have taken the time to make plans for its longevity.
Read more: How to Write an Effective Business Plan
Familiarise yourself with ‘the 5 C’s’ lenders look at
Lenders have a set of criteria known as “the 5 C’s” that they look at when analysing a business loan application. These include: character, capacity, collateral, capital, and conditions. Read more about these in our recent blog post.
The fast finance that alternative lenders offer can allow you to get a short term loan in just 24 hours. Not only does this cut-out unnecessary stress and waiting, but it also gives you the quick injection of cash your business needs to thrive or survive.
For more information about Lumi’s fast short term business loans, please visit our website or speak to a member of our customer sales team at 1300 00 LUMI.