SHORT TERM
Short term loans allow for very fast funding, so you get a lump sum of cash with a predetermined payment term. Payment is usually made daily, weekly or bi-weekly. The short term loan is best for businesses with high and consistent sales that are in need of quick unsecured cash to use however you need.
Pros:
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Fast Capital in as little as 24hrs
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Unsecured
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Easy approval process
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Little documentation needed
Cons:
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Cost of borrowing can be more
Best for:
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Businesses that have high and consistent sales and bank deposits
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Businesses that need financing right away
Financing Consideration
Companies need to grow and make profits for the shareholders.
One way to succeed is to use external financing to achieve growth.
Maybe new machinery is required to boost product production. However,
this method creates a debt that has interest and can affect the bottom line.
Suppose increased production bears no fruit for the company. Along with
the cost of human capital, labor and investment and the accrued interest
from financing new equipment may not be as profitable for the company
as expected. Not to mention the agency conflict that may arise during
the process. Our marketing team will support your growth.
Another way to grow the company could be a merger or acquisition. This union can increase value for all companies involved in acquisition due to the possible synergistic benefit. A merger could be a way to reduce the competition by merging with a competitor’s assets. This union can also have tax-related benefits for the companies.
Another synergistic benefit with the merger of a company would be to acquire all
control of its assets, including unknown debts, so due diligence is required. In addition, If the acquired company is the only competitor, the acquiring company could end up with a monopoly since no other company is producing the same product or service at the time
