Business loans can be defined as funds provided for a defined amount of time at a particular interest rate to a specific person or people that operate a small business or plan to operate a small business. This interpretation is very broad, but so are the various types of loans available to business people. Deciding on which type of business enterprise loan that you and your firm will benefit from the most is very important. Often times, a start-up business or someone that has never owned a business will find themselves more or less applying for a “personal” loan. This can be a very risky endeavor, mixing business enterprise loans with personal loans, however, often times it is the only available means for first time business enterprise owners. Find out more Business Loans & Finance
One of the first things personal small business owners need to do is establish business credit. Talk to Top Gear Asset Finance Small business credit can help you get a business enterprise only loan without using your personal credit. Establishing business credit can be done by:
1.) Opening up a small business credit card account and paying it in full.
2.) Buying equipment and supplies from companies that will report good standing to the small business credit bureaus.
3.) Having a good small business plan with potential earnings, letters of intent, and any type of customer contracts already laid out.
All of these types of endeavors can help in receiving a small business loan. Often times, financial institutions require in-depth small business plans, be prepared to spend days working on just the certification paperwork prior to applying for a business loan. A business only loan can be obtained in the small business name without use of personal credit as long as the business can justify the loan amount and the capacity to pay it back.
There are a number of different types of business loans available, ranging from those secured with collateral, non-secure loans, which are based upon the credit worthiness of the applicant, and even government loans for small business enterprise ventures, women and minorities. Govt loans are those loans secured by the government; in most instances these loans are available when the business enterprise or owner can prove that the community will prosper based upon the small business at hand. For the most part, government loans are based upon personal credit.
The basis for which you may need or require a small business loan may vary. Some of the most common business enterprise loans available to small business owners are:
Acquisitions or a loan to acquire an existing small business
Inventory loans
Account Receivable Loans
Working Capital Loans which converts a firms assets into working capital
Equipment Leasing
Commercial Property loans
Warehouse financing
International business loans
Franchise loans
One of the most important tools when deciding on what type of small business loan your firm needs is analysis. Researching the different types of loans available to you and your firm can save you money. First, look into the different type of business loans available to you in your state. Many states have government loans available; some even offer grants, which is funds available for specific purposes that do not require repayment. Research the different type of Government loans available.
Reach out to us today Asset Finance