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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.

About The Author

Ben Todd

Ben was a seriously broke graduate student with bad credit who after finding himself rejected for any sort of credit card or loan for most of his adult life, finally decided to get his financial life in order. 'He spent several years reading as many financial advice books and blogs as he could.And suprisingly, Ben found he actually LIKED the topic of personal finance; after fixing his own finances, starting his own successful work at home website business, and using his earnings to get out of debt, created to help others do likewise!

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