The best thing happening to entrepreneurs is unlimited options.
Being an entrepreneur makes you break traditional boundaries and go with the best options and opportunities offered on the deal table.
In business financing, as an entrepreneur, you are often offered (and doctrinised) by the common financing options – using bank loans, borrowing from friends and family, searching for venture capital, factoring, and using credit cards.
But what if your previous bankruptcy is haunting you? What if you don’t have collaterals to take bank loan because you are in bootstrapping mode? What if you are having a mediocre credit score?
Some would suggest you to take a job and get into the workforce again. Some would suggest you to stop trying to be an entrepreneur at all. Some would even suggest you to borrow from loan shark!
If you are in such position and bothered by those suggestion, then consider other, non traditional, financing options.
Personal short term loan
You might have heard about payday loan, cash advance and other alternative route to financing. If you are considering those options, please also consider personal short term loan.
Personal short term loans, in simple, are personal loans that don’t require paperwork and long approval process, like the traditional bank loans, and do have a lower APR than payday loan, along with a convenient payment options.
Short term loans, or installment loans, allow you to pay off your loan in installment fashion until your balance is paid off. This way, your loan payment and due date is predictable.
The main benefit of personal short term loan is the flexible payment option – it is possible to pay your loan early without any penalties. So, for instance, if you pay off your loan in three days, you will only pay three days worth of interest.
Business financing with personal short term loan
Everything personal can be used for business. This include personal short term loans.
If your business need boost, especially when your receivables are high or your business is approaching the holiday seasons peak, you can utilise personal short term loans as your leverage.
Suggestions and Words of caution
Every business situation is different. To act right on your business situation, knowledge is your best security measure.
There is no definite guide of business financing. It is your job to learn about your business financing options. Know your business financing options and learn as much as you can on them. This will definitely help you to learn what would what wouldn’t work for you and your business.
Again, I would like to caution you to take good debts, instead of bad debts. Good debts make you money, while bad debts lose you money.
Good luck to your business endeavour.
Ivan Widjaya
On personal short term loans