Tag Archives: business loan
A Quik Look Business Loans Basics
One must be well familiar with all the aspects of Business Loans. All matters are based on certain basics. Business Loan being a financial matter are also based on certain basics and it is extremely important to learn in detail about these basic before you decide to go for a Business Loan.
Business Loan is a necessity in every business and there are many types of loans available for businessmen to obtain as per there requirement. Every businessman plans to get some loan for his and one time or another, this may be to compensate or reinforce is own working capital in order to meet a requirement which may not be within the capacity of the capital in the account, or to establish a new business for which an additional capital is needed or to buy certain additional or new appliances/gadgets to meet the increase demand of the business, or for payment of wages to some additional employees till the income generated is able to meet the expenses, or for expansion of space an essential requirement to expand the business & there can be numerous other reasons too.
The important point is that will a businessman get the loan sanctioned when he/she applies for it, or will it be sanctioned in time to meet the requirement, or the amount of business loan sanctioned is same as applied or less and will the fewer amounts be sufficient to meet the need. Our endeavour here is to guide the businessmen for obtaining loan so that the businessman is able to obtain the Business loan without any problems.
The first step after you decides to go for Business Loan is to select the Lender from whom you will like to get the money. Sources available are internet, friends, other businessmen and financial companies; having selected one lender the second step is to complete the paper work. The necessary form can be obtained from Internet or the office of the Lender, better option is the company where you can also be briefed in person in detail and you are likely not to miss out any information required.
Remember it is not necessary that you have to be a businessman to apply for Business Loan, you may be an employed person and want to start your business, you are very much eligible for a business loan, but you must have knowledge of the type of loan you should apply for. All businessmen applying for Business Loans must also have the knowledge of the types of loans available.
There are TWO types of Business loans. The Short Term Business Loans and the Long Term Business Loans:-
Short Term Business Loans The word “Term” here is not related to terms and conditions, here it indicates the time period of the loan. These loans are normally for a shorter duration of time, say 6 months to12 months, therefore the amount of loan is also of smaller denomination a maximum of $100,000. Apply for this type of loan if your requirement is to invest money to generate an additional income in speed so that the loan is paid back within the prescribed period. Short Term Business Loans are mostly needed and beneficial for seasonal businesses. Long Term Business Loans Loans involving large amount of money and for longer period of time are called the Long term Business Loans. The time period can extend from a minimum of 7 years to a longer period. The time frame depends on the amount of loan. This type of loans is mostly meant for large businesses to meet the requirements of extensions or additional machinery/ vehicles or buying new enterprises etc. Business Loan may be of any type it should be utilized for the purpose it is obtained for. Obtaining or giving a business loan is a source of income for both the Lender and the Borrower.
Types of Business Loans How to Choose One
Whenever you plan to obtain a business loan for your business, the very first thing that comes to your mind is, What type of Loan do I require and from where? This is a very important and potent question which must be answered in detail; you must get full education on the subject.
Although Internet is the best source, however you should also consult to those who has already gone through the process of getting a business loan, the loan providers and finance companies. Remember, obtaining a Business loan which does not suit your requirement especially in terms of your companys financial position, will surly results in a disaster course of action on your part. You can experience a total failure of the company. Therefore only ask for a business loan when you genuinely require one, and will be utilized for the purpose it has been obtained for. For your guidance here are some types of business loans which may suit your requirement.
Fast Business Loans – These loans are not based on your companys business credit history; this does not mean that credit history is not valued at all. The aim of organization of fast provision of loans is the time factor, other factors like will the borrower repay the loan in time or will be able to payback at all. Fast business loan are of a small amounts to cover the risk of non paybacks. Companys with poor credit history or with credit histories not likely to qualify for heavy amount of other types of loans can always go for fast business loans.
Indigenous Business Loans These loans are based on the business credit history of the company asking for the loan, the credit history is valued for the reason that it is the only document which provides financial information of the borrower as the lender has no other information. Mostly the loans are of a substantial amount; therefore the payback plan is also worked in detail by the lenders, to ensure the amount is returned in time and in full. So to qualify for Indigenous Business Loans your companys Credit History should be an impressive one. Remember, indigenous business loans are based on strict terms and conditions approvals.
Merchant Advisors an organization that provides total payment solutions. Our purpose is not only to earn from the borrower, we are here to provide valuable information to all our customers. We do not go for the quantity; the quality of our customer is the key to our success. The aim is to ensure that we remain in winning situation always and every.