Today, we’ll be discussing an overview of all the different varieties of small business loans. These include business cash advances, business lines of credit, and installment loans, to name a few.
Business Cash Advance: This is the fastest and most expensive way to borrow money for your company. The possible exception is merchant account loans for retail companies. The requirements are as little as simply demonstrating your recent revenue history, or as complete as furnishing credit reports and other financial documents. The approval and underwriting process is much faster than average. Funding is usually possible within 72 hours. These small business loans are not for long term funding. Rather, they are for emergency funding.
Business Line of Credit: A business line of credit works more like a credit card than a loan, in many ways. You have an available amount of credit that you can pull cash from (called a draw, much like a cash advance). Typically, you can draw from your credit line for a predetermined period, referred to as the draw period. Ten years is a common draw period.
Secured Loans: Typically, installment loans are of this variety. They come with certain purchases, such as property and equipment. The purchased item is used as collateral to back the loan. This has the lowest interest rate of the different varieties, on average.
Unsecured Small Business Loans: Much like a personal loan at a bank, this type of lending is based on your good word and reputation, as viewed through your business history and credit. With higher than average interest rates (although not as high as advances), consider using these if you don’t have any backing assets to use as collateral.
For more information, go to Small Business Loans at http://www.unsecuredbizloan.com/small-business-loans/