What Types of Business Loans Are Out There
There are many types of businesses in this country. What they all have in common is the need for fast business cash. This may lead you to wonder what types of business loans are out there for all these companies.
In business, there is no one-size-fits-all solution. That’s why you need to know what types of business loans are out there so you can find the one that meets the unique requirements of your small business.
What Types of Business Loans Are Offered By Banks
When you need to invest in infrastructure, increase inventory or just keep your business afloat, you may naturally seek out a small business loan. Still, you must learn about your options and decide which, if any, type of business loan is best for you.
You can get bank long term loans, which are typically used for things like refinancing or acquisitions. However, these are usually for large amounts and must be repaid in monthly installments, which can take several years to pay off.
Short term business loans, for amounts of $100,000 or less, are designed to be repaid in one lump sum by an agreed-upon date. Nevertheless, like any other loan, the bank will still require tons of collateral, mountains of paperwork and a stellar credit history.
Are There Alternatives to Business Loans
The first place that a business owner looks for a loan is a bank but over the last several years the alternative financing companies are the place that businesses with under $7 million in sales turn to for a cash advance or a line of credit. Many small business owners have found success with business cash advance companies, like Financing Solutions (www.financingsolutionsnow.com).
With Financing Solutions, you can get quick business capital in less than 48 hours. More importantly the money can be used for any business purpose, such as making payroll, paying business taxes, or building a supply of working capital.
Additionally, there is no long term commitment. You can repay this type of short term business funding in a few weeks or months, with no early repayment penalties.
Advantages and Disadvantages of Different Types of Businesses
All businesses have their share of ups and downs. Nevertheless, some seem to have more of one than the other more often. Learn the drawbacks and benefits of each to decide whether a change is in order.
In a limited partnership, a partner can leave and still keep the business in tact. It is also easier to raise cash without giving up equity. This leaves you free to spend more time growing your business. On the downside, it can be more expensive to create. Even worse, partners can be held personally liable for debts, judgments and liabilities.
A regular corporation may be appealing because of limited liability. There is also the ability to write off some benefits as business expenses. Also, the business might be able to pay lower taxes by splitting profits among owners. However, there is complicated paperwork that must be filed with the secretary of state. Additionally, the corporation must pay its own taxes as a separate entity.
On the bright side, most kinds of businesses are eligible for fast business funding from Financing Solutions. They have the right financial products to take your business to the next level.