Understanding Short Term Business Loans


A big part of being successful in business is the ability to quickly get access to short term loans. Particularly in the early stages when you might not have the cashflow to meet your business needs, you might need some short-term assistance with bridging a gap until a client settles an invoice or to procure stock for sale. Short-term business loans are popular in these cases as you can settle them quickly, which means they aren’t attracting long term interest and commitment.

There are a few different options that you have for short-term business loans. 

Merchant Cash Advances

While this isn’t strictly a loan, it can often end up filling in the space where you might otherwise have needed a loan. A merchant cash advance is when a lender will buy your future credit card sales. You can see then why this might take on the same purpose as a loan.

You repay these loans through your point of sales device by allowing the lender to take a percentage of each credit card transaction you make towards repaying your loan. It’s a versatile and flexible way to get access to credit as you aren’t generally locked into a specific payment plan, but rather each day you process credit card payments, you’re slowly repaying your loan.

Lines of Credit

The easiest way to think of a business line of credit loan is that it works very much like a credit card. You’ll apply for a line of credit, and the lender will give you a credit limit. You can use this credit limit to access cash whenever you need it, and then repay whatever amounts you use gradually over time. 

It’s popular because of its flexibility, and it often ends up being cheaper than a business credit card, particularly if it’s cash you need as credit cards attract quite high cash advance fees.

Invoice Financing

A very specific, but also very useful, form of short-term business loan is invoice financing. As the name suggests, this loan involves your lender giving you an advance on outstanding invoice amounts. Once your customer pays that invoice, the lender will take their advance back, less the interest amount accumulated on that advance, and return the balance to you.

In essence, the invoice is being used as collateral against a loan; it is easy to get approval and it’s quite cost effective.

Short-Term Loans

A short-term loan is the most classic type of short term business loans. You’ll apply to a lender for a lump sum of cash, for which the lender will offer you a payment plan and interest percentage. If the terms are agreeable, the lender will pay you the agreed sum, and you will repay the loan on a regular schedule, including interest and fees. These loans are available over short terms, with very flexible repayment schedules – even weekly or daily payments.

While these four loan types are perhaps the most common, they’re not the only loans available to businesses. Understanding how to finance your business through equity and loans is imperative knowledge to have as a small business owner.

How to Get Started With a Recruitment Agency


If you are out hunting for a job, then I know how scary and stressful it can get. Recruitment agencies make your job hunting easier in the sense that they know who to connect you with. The general process of getting started with a recruitment agency stays the same, even if some things may differ from agency to agency.

Here’s how to get started with a recruitment agency:

1. Submit Your CV

Like a job posting, you will need to submit your CV first. Your CV is what lets the agency know what roles you will be suitable for and if they have an opportunity for you. 

Most recruitment agencies will also have guidelines on how to create a good CV if you need help. Some agencies will even offer free CV review, which can be of great help in learning whether your CV is up to par with the current times.

2. Interview With the Agency

Like a job, even recruitment agencies conduct interviews. Their reputation is on the line as well when it comes to matching the right candidate with the right company. This is why they have a screening process, as well.

They also prepare you for your real interview with your potential employers. Treat it as you would treat your job interview because this can be a great mock interview practice for you. It will help you build confidence and also be prepared to answer questions.

While this isn’t an interview for getting a job, it is still crucial in the process. Because, if the recruitment agency thinks you are a valuable candidate, they will try to hook you up with a great employer and will take more effort into you getting a job. Build a relationship with the recruiter so that you stay on the top of their lists for every job opportunity they have.

3. Interview With the Employer

After you have interviewed with the recruitment agency, you are basically done with your part in the process. Now, the agency will bring you are roles that they think suit you best and may set an interview with the potential employer.

If you have managed to impress the agency, then you might have many options lined up in a short period of time. Treat each one with equal importance and make sure to be prepared. Research each company and know the role requirements.

Once you are done with interviewing with potential employers, wait for your job letter. If you cracked the interview, the agency would normally be the one to contact you with the news. They also help with salary negotiations and such. If you do not crack the interview, then the good thing about having a middleman is that you can learn what didn’t work and get genuine answers. This will help you prepare better for the next opportunity that comes your way.

Final Thoughts

Getting started with a recruitment agency isn’t all that difficult. They are basically the middlemen between you and your potential employer. Once you are done with submitting your CV and interviewing with your agency, you are set with them. Don’t forget to follow-up from time to time if you are not getting any offers.