They say that in the business world, there are two kinds of people: those that produce results and those who make excuses. To make results for your own business, you may need to know what type of business loans are there.
For small businesses today, getting a business loan fast is a fact of life. However, they are not all created equal. You must do your homework to learn what type of business loans are there so you can make the decision that is right for your company.
The Type of Business Loans You Can Get
Bank term loans– these are 2-5 year long term loans with monthly payback. They can go up to 10 years and are most often used for a major investment or growth. These loans typically have an unfixed interest rate, which will add to their cost over time. They also need to be backed up by collateral.
Bank Line of Credit (LOC) – this is an agreed-upon amount that the bank loans to a business. You can borrow from it at anytime and can pay back the principal at anytime. Still, they need to be backed up by collateral.
A bank LOC is very hard to get approved for. In addition, the LOC must be reviewed and renewed yearly. Banks may only give you a home equity line of credit. More regretfully, banks only want to work with companies that have more than $10 million in sales.
Are There Alternatives to this Type of Business Loans?
Thankfully, you can now get different types of funding from a variety of lenders. With alternative lenders, you can expect a different experience and better terms than a traditional bank.
Lines of credit from alternative lenders – these are easier to qualify for with an alternative lender than a bank. You can have a less-than-ideal credit score and still be approved. Also, you don’t have to put your home up for collateral.
Cash advances from alternative lenders – fast business cash can provide your business with an infusion of capital when you need it most. You get cash upfront in advance of account receivables that are owed to you. Payments are made by daily or weekly withdrawals. This is an ideal way to manage uneven cash flow or emergency situations.
Debt restructuring from alternative lenders – when you have too many cash advances, merchant advances or business bank loans, you may need to restructure your debt. The right company will consolidate your debt into one convenient payment. They may even be able to get interest charges reduced or late fees forgiven. This works to save you thousands of dollars in the long run.
Alternative lenders are much more flexible, fast and cater to small businesses. The best type is a business cash advance company, like Financing Solutions (www.financingsolutionsnow.com).
At Financing Solutions, you can get an LOC up to $150,000 and other emergency business financing. When you are less worried about running out of cash or making payroll, you can focus more on growing your business.
