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Advantages and disadvantages of Short-Term Loans 

Like any other loans, short-term loan also has its upside and downside. If you are wondering what those are, check the advantages and disadvantages of short-term loans listed below. 

 

Short-term credit 

This is a kind of business financing orem utah where the principal amount and the interest should be paid within 1 year that is why it is short-term credit. This is mainly used in working capital requirements and financing operating expenses.   

Advantages 

  • Faster application 

This type of loan has a maximum term of one year. The application for this type of loan is not very strict and much quicker compared to long-term credit because the amount you could borrow is much less. Usually, if your documents are complete, it will take up to 24 hours for you to know if your application has been approved.  

  • Quick access to capital 

in addition to the above statement, short-term credit application process and even the releasing of funds is much faster than long-term credit counterpart. Your funding is released immediately for you to use the cash for emergency expenses or to pay you supplier or employees. 

  • Less restrictions 

It is not only that the approval of the application and the releasing of funds is fast but also requires less documents compared to long-term credit because you are not borrowing very large amount of money for a company and the lender has lesser risk. As there is much less risk involved, the lender will likely not to enact provisions like salary caps or and approval or rejection of business expenses. The lender will not also likely to keep an eye closer to the business which will result to limit your decision making. 

Disadvantages 

  • Higher costs 

Because of efficient and quick access to the capital, short-term credit has a high-interest rate, however, there are cases that low-interest rate loan is not always the best option. For you to fulfill orders and deliveries to generate sales, it is better to take a short-term credit with high interest and have sales than not having a loan and no sales either because you have no capital. You must assess first the situation when making a business decision for there are no two situations that are exactly alike.   

  • Can open a cycle of repeated borrowing 

As your application is quick and you can get the money immediately, short-term credit might be a quick solution. If you will get used with it, it may become a cycle of borrowing repeatedly. If you are taking a short-term credit this month for paying your employees and take out another one on the next month is maybe a sign that your business is not doing well. Then don’t take out short-term financing on a regular basis because if you will become dependent on it is bad for your business. 

  • Unsustainable in the long run 

As mentioned before, it is bad for a business if having a short-term financing on a regular basis because in the long run, it becomes unsustainable. And as the goal of the business is profit but if you will take loan regularly just because your revenue can’t cover your expenses, then it means you’re not making any profit. 

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Building a Tree House 

Do you have a tree in your property? Do you want to bring something in to your property that would not only bring curb appeal and increase your property value but also something that is whimsical. Then a tree house might be the answer to that. Just make sure to contact Redlands tree trimming to have your tree trimmed so you can install a pretty neat looking tree house.  

Tree House

Before anything you got to make sure that your tree is sturdy and not really laden with disease. When making the decision for the building of a tree house make sure that it is what you really want. It should be something that you’ve all considered to do and that it is something that is well within your budget.   

Here are some of the considerations that you should make to ensure that you have a tree house of your dreams.  

  • Materials  

You should always consider the materials you will have to use for the tree house. It is important that you consider this and talk about the best high quality materials with an expert. You want your tree house to be sturdy and last long without the worry that you will fall through once you sit down on it.   

  • Deck Space  

Your deck space should be ample and large so that you will have a relaxing place to stay. If your tree is sturdy enough you can work with the contractors on how big your deck could be and how much you can get away with it.  

  • Weather  

In choosing your materials and design for the tree house. Do consider the general weather of your area. It is important that you put this into consideration so that you can enjoy the tree house no matter what the weather is.   

  • Decorate  

Decorate your tree house as if it is a tree home. Choose furniture that is functional and within the theme you have prepared. This way you will love to stay in the space you created and have the furniture that you would love.   

  • Flexibility  

Leave room for flexibility in both the design of your tree house to the design of the interior of your tree house. Make sure that every decision you make for the tree house has a purpose. Every design has a purpose and that you are not wasting precious space. 

In building a tree house as mentioned before you should think of any consideration that you need to make sure that the space will be something that is safe and comfortable.  

A tree house is a wonderful way to create a cozy space outdoor. It could also be a great bonding experience for anyone involved. It should be something that everyone would have a chance to enjoy. A tree house is also an opportunity to appreciate what nature gave us. It is a great fusion between nature and human creation. You are able to relax in the space you created and enjoy the fresh wind on your face.