Start- Up Loans

Category: Finance, Financial Planning.

Knowing the correct type of loan to ask for is essential in getting the bank to approve your desired loan.

Also, business owners have several types of funding choices, based on various factors about your business. Banks have many different loans available and it is necessary for you to have a written business plan in place before approaching the bank of your choice. Some of the programs available through the Business Credit Services are below. These loans are secured by collateral. Types Of Business Loans( Explained Basically) Secured Working Capital Loans. The lender will take a security interest in your property. Most lenders will require collateral to secure a small business loan.

If you do not pay the loan back the lender has the right to seize your collateral. Lenders will not lend you more than 100 percent of the value of your collateral and will usually only lend you 60 to 80 percent of its value. As the name implies, these are loans that are not secured by any collateral. Unsecured Working Capital Loans. Credit cards, while not technically loans, are the most common example of unsecured debt. It is very. very rare to find a lender willing to give you an unsecured loan for a new business. The lender is loaning you money based on your reputation and credit worthiness.

Because you have no track record for them to work from. Loans for the new or start- up businesses. Start- up Loans. Commercial Real Estate Loans. Business Acquisitions. Commercial Real Estate loans with fixed or variable terms.

Loans to acquire an existing business. Accounts receivable serve as collateral for short- term working capital loans that you ca obtain fast and cost effectively. Accounts Receivable Factoring. Merchant Account Cash Advance. Franchise Start- up Loans. Up to a$ 50, 000 advance against regular occurring monthly merchant credit receipts.

Specialized financing reserved for the franchises of recognized, franchises, typically nationally known. Loans to small businesses from private- sector lenders( banks, etc. ), which are guaranteed by the SBA. SBA Business Loans. The SBA has funds for direct lending or loans to small businesses with long- term, fixed- rate financing for major fixed assets, such as land and buildings. A pre- arranged amount of credit based upon existing inventory, A/ R and POs or up to$ 200, 000 in business credit based upon credit worthiness with no collateral. Lines Of Credit.

Equipment Leasing. Hard Money Equity Loans. An easier way to find financing for your equipment needs and obtain tax benefits at the same time. Loans available that are typical hard to obtain from a local bank lender. If you have existing equipment, sell it and then lease back the equipment. Equipment Sale- Lease Back.

Essentially you get cash for your equipment and then lease it back. Loans for home or commercial construction. Construction Financing. Business Only Loans. Residential Equity Lines. Loans can be obtained in the business name without the use of personal credit as long as the business can justify the loan amount and ability to pay it back.

Lines of credit secured by the equity in your home. So study before heading to the bank and it will help you with many of the questions you will have. There are also short- term and long- term loans with the above.

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