4. DEBT FINANCING
Borrowing money from a financial institution (bank)
to be repaid upon a set date and can be broken
down into two categories: short term loans and long
term loans.
5. SHORT TERM
BUSINESS LOANS
๏ถ Require repayment in one year or less (On
average: between 90 to 120 days)
๏ถ Small businesses are more likely to utilize
short term loans
6. For example, seasonal businesses might
need to order a high volume of products to
be prepared for the coming season.
Short term loans enable the business to
accurately prepare its stock and repay the
loan quickly and efficiently.
7. LONG TERM
BUSINESS LOANS
๏ถ Long term business loans, on average, last
from 3-10 years
๏ถ Generally, these loans finance assets that are
being capitalized
8. For example, if your company is moving to a
new office and you plan on staying there for
the next 5+ years, it would be beneficial to
consider a long term loan of 5 years.
9. Depending on your business strategy,
there are advantages to both short
term and long term business loans. To
learn more about Business Funding
from Swift Capital, please visit our
website.