How to Get Rid of a Short-Term Business Loan?

For every business owner, getting a loan for their small business it is a major hurdle due to the strict lending standards by banks and private loan providers. The personal loan market has exploded in recent years. There are now more sources that offer fast short-term loans. Short-term business loans can provide any business with a cash flow boost. Taking out a short-term loan is essential when you need to pay off card debt, manage office renovations, start or expand your business, and for other working capital needs.

Alternative lenders offer different programs including term loans, lines of credit and accounts receivable financing. After comparing, select the one with the lowest APR (annual percentage rate). There are different types of lenders available in the market which provide loans, but nowadays online loan providers are the most accessible platform to get a short-term loan fast.

Getting rid of the short-term loan

Getting rid of any loan can become difficult if you hit the phase of a bad financial situation. It is very important to make a loan paying off strategy before you even get the loan. Here in this article, we are going to discuss some of these strategies through which you can get rid of Short-term business loans easily.

1.    Mid-Term Business Loan

Medium-term loans are business loans offered by banks and alternative lenders. They typically have fixed interest rates and flexible payback terms that the last one to five years. Depending on the loan, you typically have the option to repay in monthly or bi-monthly installments with no penalty for prepaying.  While collateral generally isn’t required, lenders may request a personal guarantee to secure the loan.

2.    Secured Business Loan

Commonly referred to as asset-based loans (ABL), asset-based finance is a form of business lending that relies on the collateral of your business, rather than just cashflow and credit. Conventional loans look at cashflow first, collateral second, while asset-based loan programs look at collateral first and cashflow second.

Relying on the collateral to provide financing allows businesses that are growing rapidly to maintain the liquidity needed to keep up with capital requirements. While ABL is great for high growth companies, it’s also great for companies that have stable growth or are in distress and need to recapitalize their balance sheet. In most cases shifting existing term debt into a formulaic asset-based line of credit will result in improved cash flow and more liquidity for the business.

3.   Reverse Consolidation

A reverse consolidation leaves the multiple merchants cash advances in place, but the reverse consolidation company takes care of the cost of the daily payments. In return, the small business pays the reverse consolidation company a fraction of what they had been paying – but for a longer-term than they had with the original advances.

If you are one of many business owners stuck in a merchant cash advance and want to discuss strategies on how to refinance the dept reach out to BitX Funding as they have many products to help you out of your situation.

BitX Funding is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.

You can reach loans specialist by toll-free at 1-800-824-2407, or email at info@bitxfunding.com or applying online here and we can guide you on which loans are the best fit for your business.