Short Term Loan
Short Term Loan No Time to Waste
Author: Casey Marie Long
Date posted: 08.01.23

While snagging large corporate clients is great, you often have to wait for your payments to make their way through their accounts payable department. That can mean a lot of headaches and cash flow issues for small businesses that are growing quickly. Unlike small business clients that are often willing to pay you for your services on the spot, corporations have a lot of red tape involved in their payment processes.

That’s exactly the predicament that a small business in Northern California found themselves in during late 2020.  Their business was a bit of a niche. They collected medical waste from large nursing home complexes. They then handled the safe disposal of the hazardous waste.  The nursing home companies appreciated the service because there were heavy fines for improperly disposing of the waste.  They wanted to branch out into servicing hospitals. These had far greater waste disposal needs, but all required more resources than the company had.

 

Short Term Loan

The company faced delays in payment from clients and had to handle expenses before receiving payments. Quick invoicing was essential.

Though their long-term prospects were good, cashflow issues constantly plagued them. Without any large equipment to leverage, they needed to obtain a short term loan to bring their cash flow under control. With several large clients paying them regularly, they could meet the revenue requirements. Applying for the loan required only some basic paperwork, which worked well for the owner who was very busy filling in different roles for the company, including scheduling, management, and accounting. They qualified for a $250,000 loan with a 2-year term length.

 

Once the business received approval, they received the loan in 24 hours. The cash cushion significantly decreased the owner’s stress level and prevented her from having to carefully consider the timing of payments. Within days, she could invest in additional manpower and set her sights on servicing her first hospital.

Short Term Loan
About The Author | Casey Marie Long

Casey has 12 years of technical writing experience. She is also a CPA and bookkeeper. Casey graduated from the University of St. Thomas (Minnesota) with a B.A. in mathematics and currently resides in San Diego, CA.

What’s New

All Resources
All Resources