There are two types of loans in the market, long-term and short-term loans. Short-term business loans can help in providing financial stability to a business. If you want to take a loan, it is important to understand the procedure and the criteria so that you choose the correct one.
The tenure of a long-term loan is up to 10 years and, the loan amount is also high for a long-term loan.
Short-term loans can be availed for a shorter time, and the loan tenure is 1 to 2 years. These loans are mostly availed by small business owners.
Here is the reason why a short-term loan is right for your business:
1. Offered to small businesses
Long-term business loans are usually offered to big and well-established businesses, whereas the short-term business loans are also offered online to small businesses who are just 2 years old.
2. Easy application process
The loan application process for a short-term loan is easy as compared to long-term loans. The borrower can fill an easy application form online along with the documents without visiting the lender’s office. This makes the entire application process easier.
3. Required documents
The required documents for a short-term loan are minimal. The main documents the lenders require are PAN card, address proof, banks statement, and Income tax returns. So, the borrower does not have to worry about arranging n number of documents.
But for a long-term loan, the borrower is required to submit more documents to establish the creditworthiness.
Long-term business loans are a long term liability for the business owner as compared to short-term loans.
Short-term online loans are beneficial when there is a requirement of quick loans, which also helps in the proper functioning of your business.
If you are looking for a quick and unsecured business loan, contact Gromor Finance for a loan at an attractive interest rate!