Loans for Businesses
With business loans, you are lent a certain sum of money similar to a personal loan, but is specifically designed for business use. These loans are payable for a period of years with interest rate and monthly payments fixed over the term. There are however some business loan providers that offers access to short-term finance payable also for up to a year.
Loans are provided so that businesses are helped with their cash flow. Short term financing offers are beneficial when times are tough and this helps businesses a lot to cross the circumstance.
Other loans can help you borrow over a longer period to enable you to pay it off from your business earnings.
If you business is already set up and running, you can apply for a start-up loan which are offered with a substantial amount. If you business is proving to be a promising business venture, you can be offered small business loans, although many times they will ask for a payment warranty in the form of a collateral or a guarantor.
If you can’t borrow from a financial institution, you can borrow from peer to peer lenders. With this type of loan, you may be able to choose from a secured loan, an unsecured loan, or an asset finance loan.
You can find some business loans which allow you to dictate the amount you want to borrow and the terms of the loan. There are those with flexible repayment schemes or options, and others come with fees for no early repayment, and it is then important to check which among these options will fit your business appropriately. You can find lenders that will require that a business have at least two years of filed accounts although you can also find lenders who will lend a business even with less than two years of trading history.
You can always find a loan for your business, no matter how small or big your business is, although sometimes lenders lend only to limited companies.
If you are looking for a business loan, you need to spend time carrying out a little research, as there are a lot of different types of loan that are offered from a host of providers.
You also have some sort of advantage when you have a poor credit history which disqualifies you from borrowing from many institutions, yet you still can because there are now lenders who lend to bad creditors. With this type of loan many businesses are provided a real financial lifeline if they have a need to cover a major purchase, or to consolidate their debts.
And the other advantage to this is that you credit status will be repaired if previously you had a bad credit with this type of loan. If you make your debt payments on time, then you have just shown that you can manage your money responsibly.