Given continued lack of support for SME’s from the banks, especially in the mining related and property development and construction sectors, SME’s need to consider their alternatives. Short Term Business Loans from alternative lenders are often good solutions for business in tough times. To understand Short Term Business Loans better, it’s useful to look at the biggest myths we find small business owners have about them.
4 prevailing myths about short term business loans
1. Short term business loans are difficult to arrange
While the red tape and administration involved in preparing formal bank applications can be overwhelming for a small business, you’ll find that alternative lenders take a much less intensive approach. Although this means working with them directly is easy, it does make sense to work with a specialist commercial broker when applying for short term business loans. A professional short term lender will work closely with your broker to ensure that you get the best possible service and solutions to your problem. Being experts at what they do, they’ll take most of the stress away from you.
2. I don’t have a great credit record
Main stream banks follow very strict credit policies and they don’t deal well with blemishes on a credit record. Quantum Credit provides a good alternative. We base our lending decisions more on the current realities of your business situation and not on your past. We look only at the purpose of the loan, the cash flow needs over its term, the quality of the security available and the strength of the exit plan. Short term business loans are always urgent so quick decisions are vital.
3. The bank won’t do a short term business loan so no one else will
This is simply not true. We recently assisted a business in a fast growth phase that was experiencing temporary cash flow challenges. Funds were needed to cover a $150 000 ATO bill and the bank could not assist until the ATO debt was cleared. Our loan was used to clear the ATO debt and three months later the bank was more than happy to provide a refinance.
4. I won’t get the short term business loan I really need - they’re only for small amounts and they take too long anyway
This is possibly the biggest myth - you’re limited by the size of the loan you require and it won’t be available in time. A business owner needed a $5 million loan to refinance a development - timing was critical. We understood his needs, we were flexible and practical in the way we structured the solution and we completed our due diligence, property valuation and legal agreement process to arrive at settlement within 5 business days. Quantum Credit has a solid reputation for responsible lending through short term business loans. Over more than ten years we have built a firm base of repeat customers that will attest to this. With open and frank discussions about needs and credit realities, we design the right solution every time. We’re good at helping quality borrowers in tough times. The Adviser’s Third Party Lending Report - Non-Banks, 2016, ranked Quantum Credit third in the category for Short Term Lenders, nationally.