Business Credit

What is a Business Loan?

A commercial loan is a way for marketers to raise money without giving up capital or exercising control over their business. Business loans are a form of debt financing. This means that the marketing agent bears debts that must be paid in exchange for access to direct funds.

There are many types of commercial loans, from traditional installment payments to commercial accounts and credit lines. Some types work better than others, depending on the history, financial situation and assets of the company.

Types of loans for small businesses

The following is a description of the most common business loan terms and types that you can find when searching for a loan. What is best for your company?

bank loans

Bank loans are simply commercial loans from a bank. Banks can offer different types of business financing, including installment loans, credit lines, and equipment loans. These institutions generally offer the best rates and fees, but they are also known to have low acceptance rates and lengthy registration processes.

Bank loans are also called traditional loans or traditional commercial loans.

Business development loan

These are loans that are used to purchase and open additional business locations. Most business expansion loans are installment loans, but some companies can use credit lines if they do not know exactly how much the project costs are.

equipment loan

These are loans that are used to purchase equipment. Generally, the lender borrows around 80% of the cost of the equipment, and the dealer is responsible for the remaining 20%. Equipment loans are an alternative to renting or buying equipment directly.

installment loans

Term loans, also known as term loans, are loans that are paid in fixed and regular installments over a certain period. The credit term for term loans is usually one to ten years, although some lenders allow shorter or longer maturities.

Installment loans can also be referred to as short-term loans (loans with a term of fewer than two years), as medium-term loans (from two to five years) or as long-term loans (with a term of six years). A year or older).

invoice financing

A comprehensive duration that includes loans (along with other non-loan products), supported by unpaid invoices. If you have cash flow problems due to unpaid invoices, billing may be suitable for you.

credit lines

Loans that give you a credit line that you can cancel at any time without applying. These loans are for companies with occasional cash flow problems, for those who normally have unforeseen expenses, or for other companies that need financing but do not want to go through a registration process every time. A full list of credit checks can be found here.

online loans

Online loans are also called market loans or alternative loans. They are made by various non-bank lenders who use this technology to make loan decisions quickly and easily. Individual online lenders can offer products that include installment loans, lines of credit, short-term loans or other types of loans that are similar but most of which offer timely financing. two weeks or less.

Small Business Association (SBA) loan

Although SBA loans are mostly from banks, the registration process is carried out by the Small Business Association itself. The SBA also guarantees part of the loan amount, which means that these loans are generally easier to obtain and require less collateral than traditional bank loans.

Short-term loans

Unlike most loans, where interest is calculated based on interest, short-term loans use an interest rate that is calculated based on the initial value of the loan. Short-term loans are expected to have short maturities; They usually have to be paid within two years, but some lenders allow up to three deadlines.

Here is an overview of all revisions of our short-term loans (as well as your counterparties, except for lending and advance payments from dealers)

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