Capital ConciergesPurchase & Refinance Mortgage LoansUpdated on Feb 10, 2018 View more like this | Visit TAMPA, FL | Contact Capital Concierges |
Capital Concierges is a loan advisory firm in the alternative lending industry. We help retail businesses obtain immediate working capital whether that is through a bridge loan, private money, line of credit, Inventory financing, Invoice factoring, franchise financing, selling or placing of consumer or commercial debt receivables, or those who are in need of payment processing for their business.
Phone 1-800-897-1409
Phone 1-800-897-1409
Capital Concierges
12157 West Linebaugh Avenue Suite 107 Tampa, FL 33626
6 Major Types of Small Business Loans – Which One will You Prefer?
Loan companies are a great support for small businesses.
The very desired amount of loan can do so many jobs! It can promote new research and development, improve sales and marketing campaigns, let you hire new staff, help you in expansion and much more.
There are various types of small business loans. You should be aware of them so that you can know which of them suits you the most.
1. SBA Loans
These are the loans offered by some banks for small businesses with attractive low interest rates, supported and guaranteed by the US Small Business Administration (SBA). Due to the SBA guarantee, repayment terms and the interest rate are better than most other loans. However, the loan process is time-consuming and there are strict eligibility criteria.
2. Working Capital Loans
This is a debt on the vehicle used by the organization to meet its daily operations. Businesses use these loans to manage up-downs in revenues and seasonal expenditures or other scenarios in the business. Some of the working capital loans are unsecured; but businesses that have little or no credit history will need to pledge collateral or give a personal guarantee to get the loan.
3. Accounts Receivable Financing
This is a type of credit facility that the accounts receivable (AR) of the company secures. The AR line enables you to obtain cash instantly based on the level of your accounts receivable and the rate of interest is changing. The AR line is to be paid down as and when the ARs are paid by your customers.
4. Small Business Line of Credit
In this method, you can get funds from a lender as and when required. There will be a cap on the amount of money available; however, a line of credit is helpful in managing the cash flow and unforeseen expenses. A fee is charged for setting up a line of credit; but any interest is not charged until you actually draw the money. There is monthly payment of interest and the principal drawn on the line is usually amortized for years. Nevertheless, majority of lines of credit need to be renewed annually which may need additional charges. If you don’t renew the line, you’ll have to pay the full amount at that time.
5. Small Business Term Loans
Term loans are usually for a fixed dollar amount and are taken for company operations, expansion or capital expenditures. These loans can be secured or unsecured, and interest may be fixed or variable. They are perfect for small businesses in need of capital for growth or for some huge, one-time expense.
6. Equipment Loans
This loan can be taken by businesses to buy equipment with a down payment of 20% of the purchase price and the loan is secured by the equipment.
Now you can decide which among these loans is the most suitable for you. Choose the right option and thrive in your business.
Loan companies are a great support for small businesses.
The very desired amount of loan can do so many jobs! It can promote new research and development, improve sales and marketing campaigns, let you hire new staff, help you in expansion and much more.
There are various types of small business loans. You should be aware of them so that you can know which of them suits you the most.
1. SBA Loans
These are the loans offered by some banks for small businesses with attractive low interest rates, supported and guaranteed by the US Small Business Administration (SBA). Due to the SBA guarantee, repayment terms and the interest rate are better than most other loans. However, the loan process is time-consuming and there are strict eligibility criteria.
2. Working Capital Loans
This is a debt on the vehicle used by the organization to meet its daily operations. Businesses use these loans to manage up-downs in revenues and seasonal expenditures or other scenarios in the business. Some of the working capital loans are unsecured; but businesses that have little or no credit history will need to pledge collateral or give a personal guarantee to get the loan.
3. Accounts Receivable Financing
This is a type of credit facility that the accounts receivable (AR) of the company secures. The AR line enables you to obtain cash instantly based on the level of your accounts receivable and the rate of interest is changing. The AR line is to be paid down as and when the ARs are paid by your customers.
4. Small Business Line of Credit
In this method, you can get funds from a lender as and when required. There will be a cap on the amount of money available; however, a line of credit is helpful in managing the cash flow and unforeseen expenses. A fee is charged for setting up a line of credit; but any interest is not charged until you actually draw the money. There is monthly payment of interest and the principal drawn on the line is usually amortized for years. Nevertheless, majority of lines of credit need to be renewed annually which may need additional charges. If you don’t renew the line, you’ll have to pay the full amount at that time.
5. Small Business Term Loans
Term loans are usually for a fixed dollar amount and are taken for company operations, expansion or capital expenditures. These loans can be secured or unsecured, and interest may be fixed or variable. They are perfect for small businesses in need of capital for growth or for some huge, one-time expense.
6. Equipment Loans
This loan can be taken by businesses to buy equipment with a down payment of 20% of the purchase price and the loan is secured by the equipment.
Now you can decide which among these loans is the most suitable for you. Choose the right option and thrive in your business.
