At present, running and managing a business is easier than ever before. But, despite the new technologies to offer you with innovative ways to get your target market and little obstacles to entry, majority of business owners find that business loans are essential to close the funding gaps.
At the same time as you might be able to survive by using your own cash for a short time, at some point in time in the future it makes more sense to start exploring business loans for smoother operations. There’s an objective that even the large and successful companies continue to borrow.
When To Apply For A Business Loan?
Mainly there are three reasons why businesses need to get a business loan. And the first is, they have to start a business or a business project, but they do not have sufficient capital to start it. The second reason is, they do not have any working capital available in their hands to start building the business that they want. And the third and last one is, they already established a business, but it is near to bankrupt.
Business loans are especially made to help these types of businesses. A business loan is a business’ debt that needs to be paid back as per the loan terms and conditions. The financial experts propose that businesses that plan to get business loans must have a complete understanding of the loan and its terms and conditions before going to any lender.
How It Works?
Business loans work just like other financing products – the lender and you both agree on an interest rate and a payment program, and after that you sign a promissory note that set out your settlement in writing. The lender may also ask for you to provide collateral as a security for the business loan, for example, your business assets, equipment, vehicle, your home or other valuable resources that the lender can take if you fail to repay the borrowed amount.
Why Do Businesses Prefer Business Loan?
There are many businesses that are looking for every single possible way to expand their business operations. In order to expand their business operations, they need more workers, equipments, additional space and so on. The only hindrance that comes into their way is their budget. If that is the case, they will consider this time as ideal for getting a business loan.
Types Of Business Loans
Here are some primary types of business loans available and a quick overview of how they work:
SBA loan is guaranteed by the Small Business Administration (SBA) . SBA is a federal agency that helps promote entrepreneurship. The loan is typically long term, and has an economical interest rate. You are lent money, which you repay over a set time frame.
Business Line of Credit
In business line of credit program you’re given access to a credit limit that you can draw when you require the money. It offers you a cushion to tap into, and you just need to pay interest on the drawn funds.
Invoice factoring helps you to sell your outstanding invoices to a lender, who will provide you cash in exchange. Even as you lose a part of your potential profits, you can get the required amount immediately rather than waiting for your customers to pay.
Restaurant Equipment Leasing
In restaurant equipment leasing program, you get the cash for the purpose of buying the required equipment for your restaurant. In this program the equipment serves as collateral for the borrowed amount.
Short Term Loans
Short-term business loans are also called unsecured loans and usually used for situations when a business needs to pay the loan amount (plus interest) back in anywhere from 2-10 months.
Long Term Loans
Long-term business loans are also called secured loans and are ideal for large expenses related to business, such as real estate or equipment. They’re a bit difficult to acquire for businesses which are just starting out, as the requirements of long-term business loans consist of strong credit history, strong business cash flow and revenue, as well as collateral. Most long-term loans have terms up to 30 years.
Business Cash Advance
In business cash advance also called merchant cash advance, the lender offers you cash advance in exchange of a percent of daily credit card sales of your business for a fixed future duration.
Business Loans For Women
For women business owners, it may be hard to get financing for their startup small businesses. Previously, women have encountered demanding situations in their efforts to develop their ideas and set up small business. But now the problem is solved with business loans for women.
Bad Credit Business Loans
Are you struggling with bad credit? Are you tired of being rejected again and again due to bad credit and need quick cash for your business? There’s a solution! Getting the amount you need to help your business can be easy by applying for a bad credit business loan.
How Business Loan Can Help Your Business?
At some point in the future you will reach to a situation in which your business needs expansion – however you will probably not have the capital. This is where business loans can help you. You can use business loans to purchase business equipment and inventory. Additionally, this form of debt can also offer you with the capital you need to recruit more workers.
Benefits Of Business Loans
- Easy 3-step application
- 90% approval rate
- Quick funding
- No application or closing costs
- Bad credit isn’t a problem
- Best rates, save time, and save money!
- Loan interest is tax deductible
- Early repayment savings
- No upfront fees
- Loan renewal benefits
- No collateral requirement
- Minimal information required for approvals
- Get your business funded in just a couple of days!
Whether you require funding for working capital or for business expansion, Merchant Advisors gets you the funding when you need it at lowest rate. We understand that every business has its unique borrowing requirements; therefore we offer fast business financing options. If this seems like something that can help and benefit your business, we suggest you to get started with Merchant Advisors today!