Different Types Of Small Business Loans
Ask the Right Questions to Inform Yourself
If you want your loan to get approved, it’s crucial that you know which kind of loan you should be getting. There are a variety of loans at your disposal, and you have to get your plans for the money in order for the bank to seriously consider your proposal.
There are even different options for loans depending on what kind of business it is. The following outlines some Business Credit Services programs you can take advantage of. Different Business Loans Available to You
– Secured Working Capital Loans
– You use collateral to get these loans. Your property will be taken as security by your lender. You collateral will be taken by the lender in the event of defaulting on the loan. If you want a small business loan, you often have to offer collateral. You won’t even get the whole value your collateral is worth, so the lender can minimize the risk – it’s likely that you’ll get most of it, but not all.
– Unsecured Working Capital Loans
You don’t need collateral for these kinds of loans in order to get them. Unsecured debt includes credit cards and other ways of paying for individual items on credit. Your credit history and payment history are the factors in getting accepted for this. If you want the start a new business, you will likely not get an unsecured loan except in special situations. There’s no precedent for your payment history to base their risk on.
– Start-up Loans
There are ways to finance a brand new company.
– Commercial Real Estate Loans
These loans’ interest rates are either fixed or variable.
– Business Acquisitions
This money is for taking over an established company.
– Accounts Receivable Factoring
If you want a short-term working capital loan, you often use accounts receivable for collateral quickly and cheaply.
– Merchant Account Cash Advance
You can get almost $50,000 advanced from credit receipts if you’re a merchant.
– Franchise Start-Up Loans
These are for establishing a new location for an already established company.
– SBA Business Loans
These are SBA guaranteed small business loans, provided by baks or other private lenders. SBA can either directly lend money to someone, or help a small business finance a building or a tract of land with long-term loans.
– Lines of Credit
This is a non-collateral based credit allotment that is determined by what inventory someone has, or even if they have $200,000 in credit for their business.
– Equipment Leasing
If you want to get equipment, this is a good method to pay for it, and you even get a tax break as well.
– Hard Money Equity Loans
These are loans that your local lender may not give out easily.
– Equipment Sale-Lease Back
This is for leasing back equipment you’ve sold to someone else already. With this method, you’ll get the funding from the sale, but still be able to use it.
– Construction Financing
This will help you pay for building a home or building.
– Business Only Loans
You don’t need personal credit for these loans, as they are taken out from your business; however, the business itself must be the one to repay it.
– Residential Equity Lines
Equity is the major factor in the credit amount of this loan.
You can get these in short term and long term varieties. Do your homework before you decide which one you need, and you’ll be well on your way to financing your dreams.