Are you running a small business and looking for a cash advance, easy term loan, asset based funding or inventory based loan? Which loan is the best funding option for your business and best fit to your current scenario? When you compare your business loan options, actually you are making a decision that has such a long-lasting effect on your small business, and that can be intimidating; however online business loan lenders can make the whole process of funding simple and hassle free.
The financial decision making is an ability that can be; however is never educated. The current education system has not made the necessary steps to educate these skills, that’s why online lenders can help you to examine business loans readily, lending you not only cash for your business, but additionally provide valuable information for seeking and acquiring business loans.
There’s a number of small business loan options available to help meet your business needs. Here are smart options to help grow your business.
It is always quite difficult for you to compare business loans that are not similar in nature. Take a look at which loan program meets the requirements of your unique scenario or business operations.
Merchant Cash Advance
Merchant cash advances are probably the most common type of business financing that you will find. Merchant cash advances are similar to a business line of credit, in fact, when the borrowed amount has been paid off to 50%, you can renew the funding. For businesses that need a quick cash infusion, merchant cash advance is an excellent funding program.
Easy Term Loan
Easy term loans are the traditional type of business funding that you can get for your small business. You borrow a lump sum amount of money, normally for a particular purchase that you are making for your small business. There is a repayment program worked out and, for instance, online lenders provide 3-5 year term. Additionally you don’t need to provide any type of collateral to get this funding.
Asset Based Loan
Asset based financing can be a smart financing alternative for asset-rich businesses trying to get the most out of their borrowing capacity. By credit and collateral monitoring, online lenders can fund loans that are outside the typical lending standards of most conventional financing organization that can offer you with greater credit availability and greater flexibility to chase your business’ objectives.
Annual Percentage Rate
The term Annual Percentage Rate (APR) is very familiar and almost everyone knows as it is everywhere, in car commercials, personal loan billboards and it matters when you compare your business funding options. APR is a general term that indicates the annual amount that you will pay the online lender, which includes the principle loan amount, which normally means additional fees and interest. In case you observe interest rates, it is good; however that isn’t what you need to know. Observing the annual percentage rate makes a huge difference. If you want to evaluate a loan program, start considering the APR of each loan.
How long is the term of the loan program that you opt for? When you compare the business funding programs, the term of the loan will have an effect on the repayment amounts as well as on the ARP in general. Short term funding programs are best for small businesses that require funding to make it over the hard part or through an off season.
It is good for you to understand how to compare business loans due to the fact that lenders want borrowers to be as knowledgeable as possible to make a business loan decision that will positively affect their business.