Business loans come in all shapes, sizes, and time frames. When contemplating what type of business loan you need, it’s important to have a basic knowledge of the types of loans available to you in order to secure the best type of financing for your business.
In its most rudimentary sense, business loans can be categorized into two broad types: short-term and long-term. Short-term loans are great for seasonal businesses because they generally mature within on year or less. On the flip side, long-term loans typically have maturity dates from one to seven years. However, it’s not unheard of to see longer-term business loans, particularly when it involves major equipment or real estate financing. Most often, long-term loans are used for bigger business expenses, such as vehicle or fleet purchases, construction, and furnishings.
Besides business loans based on maturity dates, there are different types of loans. Available at www.UnsecuredBizLoan .com, some of the more common types include:
Lines of Credit: This type of business loan is used to finance day-to-day operations. Most often credit lines are short-term in nature. Common lines of credit are offered in 90 day increments, but they can go up to a year or several years.
Equipment Financing Loans: Business typically seek an equipment financing loan when they are in need of new equipment. You’ll want to have a clear idea of how the equipment will be used, and how you decided on your choice of equipment.
Accounts Receivable Loans: If your business has a large amount of unpaid invoices at any given time, you may be the ideal candidate for an accounts receivable loan. Accounts receivable loans are a popular loan choice among businesses that don’t require customers or clients to immediately pay for a product or service when purchased.
Secured/Unsecured Loans: In a secured loans, collateral is used to back the money. Commonly used collateral is receivables, securities, or inventory. On the other hand, an unsecured loan doesn’t require any collateral to back up the loan. However, unsecured loans typically require a higher credit rating.
Small Business Administration loans: Small business administration loans, or SBA loans, are geared to small and medium-sized companies. These loans are backed by a majority portion by the United States Federal Government.
To apply for funding for your small business, use the form on the right to begin the application process.