downloadFor a purely commercial loan, however, growing businesses don’t typically qualify for 30-year terms. Even when real estate is involved, businesses are likely to find that 15- or 20-year terms are the norm. For most other business purposes, five years is considered long term.

Of course, there are plenty of times when long-term money is exactly the wrong solution. If a fast-growing business needs cash to meet payroll or simply wants to purchase office supplies, taking out a mortgage doesn’t make any sense. Credit cards, short-term loans, revolving credit lines and factoring are all much better options for freeing up cash to meet short-term needs. Today, there is revenue based financing which provides short-term solutions. Banks are often the best sources of credit cards and small or revolving credit lines. For more flexible financing, such as factoring, specialty lenders or corporate finance companies will fit the bill.

Wherever you go looking for money, remember the golden rule: short-term loans for short-term needs; long-term loans or equity for longer-term needs.