Posted June 2016:-

Benefits of Short Term Loans For Businesses

Short term loans provide borrowers with a set quantity of cash to be paid back over a predetermined period. Like traditional loans, short-term loans require applicants to pay interest on the principal advance, and usually involve smaller cash sums and shorter repayment periods. At Express Lenders, our short term loans can be taken out for a period of up to 90 days (provided you have a vehicle you can use as security).  Additionally, short-term loans are often easier to obtain than traditional loans.

What Is a Short-Term Loan Good For?
Naturally, not all business expenses are appropriate for short-term loans. In fact, we strongly advise against using your short term loan to pay any long-term debts like real estate and business acquisitions.
Here are a few reasons that small businesses may want to pursue short-term loans over other lending types.

1. Cash Flow Issues
If your business has cyclical or uneven sales, short-term loans may be ideal for resolving cash-flow shortages. For example, many new businesses struggle to find the funding for set up bills and other expenses.

2. Seasonal Trends
Similarly, short-term business loans enable businesses to keep up with seasonal trends. Many businesses require extra capital and staffing during holiday seasons. A short-term loan enables a business to build up its inventory and cover temporary workers salaries.

3. Expansions
No matter the type of business, another common reason to take out a short-term loan is to finance an expansion. Whether you’re buying more machinery, or broadening your product or service line, expansion requires upfront capital. With short-term loans, businesses can get that capital.

4. Emergencies
It doesn’t matter how good your business insurance is; every now and then a situation will arise for which your company is unprepared. With short-term loans, businesses can avoid going under in the event of an equipment breakdown, computer crash or disaster.

 

Posted May 2015:-

Excerpt from The Adviser 2014

Reputable short-term lenders have worked hard in recent times to shed the industry’s ‘cowboy’ image. And with an increasing number of players and demand here’s what you need to know next time one of your clients is hungry for quick finance…

Finance is a bit like a can of Coke: there’s no ‘set’ price for either item. Pick up a Coke from a supermarket and it might set you back $2. Buy the same Coke in a pub and you might have to pay $3. Order the Coke from a restaurant and you would expect to pay $4. Everybody understands this and accepts it as fair.

Context is everything when it comes to money. A prime mortgage is the finance equivalent of a supermarket Coke. A non-conforming home loan is like a pub Coke. A short-term loan is like the restaurant Coke. The borrower pays a premium in part because the amount of paperwork and due diligence required for a six-month loan is similar to that for a 25-year mortgage, yet the return is not the same.

Healthy commissions… and no clawbacks

Short-term lenders are a more diverse bunch than their banking cousins. The main banks are large organisations that tend to cover the entire country and offer the full suite of mainstream products. Short-term lenders, however, are much smaller, which means they are more likely to confine themselves to niches and particular regions.

That’s why it can be hard to describe a ‘typical’ short-term lender. Interest rates vary widely, but one common rule is that short-term rates start where bank rates end. Terms are usually three to six months, although they can extend for as long as 12.

Turnarounds within a week are common and can even be done as quickly as 48 hours. Funding comes from shareholders and private investors, which can range from institutional and wholesale investors to retail and SMSFs.

There are two main reasons clients don’t just go to banks. Often, they can’t qualify for a prime loan – but even if they can, they usually need the finance faster than the bank can provide. That provides an opportunity for brokers. Deals can be difficult to organise and clients are usually desperate to get their hands on the money.

That means they will happily allow the broker to add a one to two per cent margin on the loan – and even thank the broker for the privilege. Best of all, there are typically no clawbacks.

One thing short-term lenders readily concede is that there can sometimes be a funny smell about the sector. That goes with the territory when you lend out money at higher than-normal interest rates and occasionally attract hostile media coverage. But brokers, more than anyone, should be able to understand their predicament.

Just because a small number of sharks do the wrong thing and attract negative headlines doesn’t mean there is a problem with the industry at large. Ethical short-term lending solves problems rather than creates them.

Help wanted

That’s the best way to think of short term lending – as the answer to an urgent problem. People use banks to achieve long-term financial goals such as home ownership or planning for retirement with an investment property or two. But short-term lending is about overcoming an immediate issue so the borrower is better positioned for the years and decades ahead.

Short-term loans are often used to settle properties. One typical scenario involves the client who plans to sell one property to fund the purchase of another. But then disaster strikes – an unexpected delay in the sale of the existing property. Suddenly, the client doesn’t have the money to settle their new place. There’s no time to organise a bank loan, so the client turns in desperation to a short-term lender. They understand the interest rates will be higher, but are willing to accept that if it means being able to take possession of their dream home. Soon after, the sale of the first property is finalised, and they’re able to repay the loan.

Businesses also need loans. A man running a family restaurant may be just two weeks away from being wound up because of an overdue tax bill. Short-term finance will allow him to get the taxman off his back and give him time to restructure the restaurant into a sustainable operation. Or a successful printer may hear that a rival with an impressive customer list has just entered administration. The administrator is targeting a quick sale, so the printer will miss out unless he can find some money in a hurry.

View the full online article here

 

Posted June 2014:-

Asset Lending/Pawnbroker Services Now a Popular Loan Option for Many Since GFC

Since the Global Financial Crisis, asset loans or pawn loans are now seen as not just the poor man’s loan but a popular, convenient means of borrowing cash for for many individuals (including the wealthy) and businesses suffering from short term cash flow issues.

Many Australians of all walks of life, especially those who have been left with a bad credit history, for one reason or another, are realising that borrowing against their car, boat, caravan, ute, motorbike or other items of value is simple, quick and convenient.

Pawnbrokers or Asset Lenders, do not require bank and income statements or any financial records. Unlike other lending institutions they also don’t require proof of income and therefore perform no credit or employment checks. This is because they legally hold the asset as security for the duration of the loan, and this allows them to make the best loan offer.

The process is very simple and during stressful times, this simplicity can be very comforting. If you feel as though you can hock your ride or other vehicle during these difficult times, then see how the process works with Express Lenders. Or call 1300 722 126.

 

Posted October 2013:-

Using Your Caravan or Boat for A Short Term Loan

When people require cash fast, they often think of using their home or a prestige vehicle as security.  If you do need cash fast, why not consider using an unsecured, often unused item such as your boat, caravan or camper trailer?

Express Lenders will inspect your asset and loan up to 60% of its wholesale value, and store the item in a safe, secure facility for the duration of the loan.  This could be a good option for those with a poor credit rating or for those wanting a loan without the dramas of proving income, and filling in loads of paperwork.  And, if the vehicle is not used on a regular basis, this could be another reason why this loan option is suitable.

Contact us for a quick, short term loan today!