What Are the Types of Business Loans
Baseball great Tommy Lasorda said, “There are three types of baseball players: those who make it happen, those who watch it happen and those who wonder what happened.” The same might be said of the types of business loans. Some help small business owners make things happen, some take so long to get that all you can do is watch things happen and others make you wonder why you got it in the first place.
There are numerous types of business loans. Making the right choice for your business can mean the difference between success and shutting down.
What Types of Business Loans Are Best for Your Business
Bank term loans – these are generally used to finance expansion, improvements and large projects. Some businesses find them attractive because you can take up to ten years to repay the money. On the downside, lenders typically impose a long list of restrictions, such as maintaining a minimum asset amount.
Bank lines of credit – getting a line of credit at a traditional bank may seem like the safe way to go. However, you must secure the line with tons of collateral and possess a stellar credit history. They also may insist that you renew the line every year.
Factoring – using a traditional factor may offer fewer restrictions than a bank. Still, the disadvantages include policies that force your client to pay the factor instead of your company and very expensive fees.
Are There Alternatives to These Types of Business Loans
Obtaining fast business funding is essential for small businesses but going the traditional route is an exercise in frustration. Thankfully, alternative lenders, like Financing Solutions (www.financingsolutionsnow.com), are available to help small business owners when banks won’t. They offer:
Cash advances – this type of funding provides many advantages, such as being unsecured, easier to repay and approved in about 24 hours
Financing Solutions line of credit – they offer a fast and easy application process and the line can be available for up to 12 months. Best of all, its emergency business funding you can draw on when you need it.
What Types of Business Trends Will Help Your Company Grow
Some people hear the word trend and think only of fashion or fads. However, trends signify the general direction in which something is developing or changing. As such, there are business trends you should pay attention to so that your competition doesn’t get ahead of you.
One bandwagon you must jump on is the proliferation of social media. Much of the world is on social media and it represents a way to engage and have real two-way dialog with your customers. There are also business-related platforms like Google+ and LinkedIn, designed specifically for networking, B2B and sharing of ideas and resources. Additionally, you can use your employees to help you spread your messages on social media.
Another important development in the evolution of business is corporate social responsibility. Today’s customer is very demanding, selecting only businesses that share their beliefs and concerns. Actions such as going green, supporting community causes and partnering with charities can increase your profitability.
The biggest trend is more businesses turning to alternative lenders like Financing Solutions for their small business financing needs. They offer the best financial products for your business growth.