WHAT YOU NEED TO KNOW
As business owners the first question you need to ask yourself before taking on any type of short-term financing is what will I be using the cash for?
With many different types of business loans you can choose from, knowing the reasons why you are taking on the funding will help determine which option is best for you.
Taking on more funding than you need can overburden your businesses cash flow while not borrowing enough can make the outcome of the project fail.
Calculate how much cash will it take to achieve your business goal first.
Then you have to evaluate how much you can afford to pay towards that goal without overburdening the businesses cash flow.
Orumfy has designed a Short-Term Loan calculator to help you make your decision.
When applying for a working capital loan business owners need to consider what they will be using the funds for as well as what financing options are available to them.
How the cash will be used will determine what type of short-term loan would be best.
For example if you need quick access to cash, but don’t need it in one lump sum?
Lines of credit will be the best option here.
In the event you do need a lump sum amount of cash immediately a merchant cash advance would be best.
If your cash flow is in trouble because of slow paying accounts receivable, then you might want to consider invoice financing.
Orumfy’s platform evaluates your business and will help you make the right choice when taking on a working capital loan.
After you have decided how much funding your business needs, and which financing option is best, business owners need to decide which lenders to work with.
Using traditional lenders such as banks or credit unions is one option.
Keep in mind the application process is much longer requiring a lot more paperwork than when dealing with online lenders.
Credit score plays a big role when dealing with traditional lenders.
Banks tend to look for a minimum credit score of 640.
Non-traditional lenders such as an online lender, will work with you with a credit score of 550 and above.
Non-traditional lenders uses different criteria when approving a loan application.
Time in business, monthly average deposits and negative days on your bank statements play a much larger role.
In most cases all you need for online lenders is a one-page application, 3 months of bank statements and a valid form of ID such as driver’s license.
Orumfy made that process even easier, and you can do it all online in just a few minutes.
Orumy’s online platform can pre-qualify your business in seconds, and connect you with national funding companies offering the best rates and terms.
A working capital loan comes in many different options. Depending on what you are using the cash for will determine which one is best for you.
Here is a brief description of the short-term financing options available to you.
Once the Lender has approved your loan application funding happens almost immediately
Payments are made according to the agreed terms of the loan.
Orumfy has made the application process quick and simple and it only take a few minutes online.
Create your free account today and start growing your business now.
I can do it on mobile!!!
Not a lot of paperwork?
WOW! That was quick!