Business loans are offered to start-ups, entrepreneurs, corporations, and new and small businesses. Many businesses apply for government financing because of the longer payback period.

Types of Financing

Applicants for business funding can choose from disaster and real estate loans, micro-loans, and others. Private lenders are also a source of funding, offering lines of credit, conventional and commercial loans, etc. Applicants can choose from unsecured and secured loans, and the latter feature lower interest rates. Financial institutions accept different assets as collateral, including real estate and natural reserves. Unsecured loans are offered to regular and creditworthy customers because collateral is not required. Other types of financing include peer to peer loans and equipment cash out refinance. Borrowers who opt for equipment and vehicle loans can use the funds to purchase machinery, trucks, vans, and so on. Banks also provide real estate loans to construct or purchase industrial, retail, and apartment buildings. Financial institutions also offer permanent and owner-occupied financing. Lenders also provide micro-loans to businesses that are looking for funds to expand or start an enterprise. The money can be used for the purchase of machinery and equipment, furniture, supplies, and so on. The interest rate usually varies between 8 and 13 percent. Businesses also apply for short-term loans with attractive interest rates. In addition, there are small business loans under different government programs that come with attractive interest rates.

How to Apply

Banks require documents such as licenses and business certificates, loan application forms, and others. Borrowers are asked to provide documents such as bill of sale, copies of business leases, and others. One of the requirements is to prepare your financial documents and statements and make them available for a review. You may need to provide verification of non-business income, including public assistance, retail income, and paystubs. Banks are also interested in your business profile – length of time in business, history, number of employees, sales volume, etc. Legal documents to submit include commercial leases, franchise agreements, and others. Some banks also require that applicants submit copies of contracts and business registrations. Make sure you write a solid business plan to increase your chances of getting approved.

Other Types of Loans and Alternatives

Secured and unsecured working capital loans are available, and the latter are offered to customers with a good credit profile. There are different options to consider, including residential equity lines, construction financing, as well as business acquisition loans. Franchise loans are another variety whereby funding is offered for the purchase of recognized franchises.

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Products for Creditworthy Customers

by admin on April 29, 2014

The selection of credit cards includes secured, balance transfer, and specialty cards with insurance policies, promos, concierge services, and other perks.

Clients with good credit can choose from different products, including low-interest loans and credit cards. There are different options to choose from depending on your lifestyle and payment habits. One option to consider is a rewards credit card that allows holders to redeem points for brand-name merchandise, airfare, and more. Issuers feature cashback programs as well that offer rebates on purchases made. There are industry and bonus categories, and bonus points are usually posted as a statement credit. Customers pay for their cruise or vacation bookings, hotel stays, and airplane tickets with no seat restrictions or black out dates. Holders are offered access to airport lounge programs and priority access to international and domestic lounges all over the world. Rewards and cashback credit cards offer plenty of benefits, but some issuers assess fees and charges. Rewards and airmiles credit cards are also offered to business owners. There is a wide array of credit cards available, depending on factors such as employment, level of indebtedness, and others. 

Customers with poor credit have several options depending on their credit score and income. Borrowers with poor credit are considered risky customers, and their pool of options is more limited The interest rate usually varies between 30 and 40 percent. Borrowers with good credit have access to rewards programs, cheap flights, in-flight refreshments, and more. Retailers and department stores also offer credit cards that feature perks such as free gift wrapping and alterations. A department store credit card is a good option for borrowers who pay the balance in full because of the higher rate of interest. This option is a good choice if you are a frequent shopper and have a favorite department store where you make frequent purchases. Whether using a standard or secured credit card, payments are usually reported to the credit bureaus. Then there is the option to apply for a student card that comes with hbc credit card discount on school-related purchases and other perks and allows students to build their credit history. Students enjoy benefits such as attractive interest rates, no annual fee, discounts, and others.

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Mutual and Hedge Funds Investing

April 25, 2014

The main benefits of hedge funds include portfolio diversification, capital preservation and growth, and reduced risk of losses. Hedge funds offer downside protection meaning that they help improve the customer’s return and risk profile. One problem to bear in mind is that these funds charge a lot of money in performance and management fees. Another […]

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Alternatives to Debt Consolidation

April 23, 2014

Many borrowers look for different ways to lower their monthly payments and become debt-free faster. Consolidation loans come with longer repayment terms which is why payments are more affordable. Weighing the Pros and Cons A secured loan is one option for borrowers, and they are usually offered a lower interest rate and a longer repayment […]

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Personal Loan to Pay Tuition

April 16, 2014

Applying for a personal loan is one way to finance the purchase of big-ticket items, go on vacation, pay tuition, and more. Banks offer loans to help borrowers with their home improvement projects, extensions, and recurrent expenses. Customers are offered travel loans with different repayment schedules that suits their budget. Borrowers can use the funds […]

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Options for Borrowers with Poor Credit

April 15, 2014

Consumers can choose from different types of loans, including secured and unsecured. Traditional and online banks and finance companies offer unsecured loans. Loans are reserved for creditworthy customers with solid income. There are different types of unsecured loans, including used and new car loans, consumer, and student loans. Banks and car dealerships offer auto financing […]

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Small Business Start up Ideas

April 14, 2014

Individual lenders and peer-to-peer platforms offer plenty of financing options. Some microlenders are an excellent choice because they report payments to the bureaus and offer loans of up to $35,000. They advertise quick approval, no hidden fees or teaser rates, and competitive fixed rates. There are many benefits for borrowers, and one is that they […]

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Fast Access to Cash With Line of Credit

April 7, 2014

There are different types of credit lines, offered to individual borrowers. Some types are unsecured while others require a form of collateral.  The main benefit for borrowers is that they can draw on the line multiple times and whenever they need cash. While there are many benefits, banks have certain lending criteria and requirements. If […]

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University Loans and Options for Borrowers

April 5, 2014

Students can choose from private and state universities, and the latter are usually less expensive. There are different options to consider including financial assistance under government programs and loans from brick-and-mortar banks and non-bank lenders. The best choice is a loan with a fixed interest rate and flexible repayment scheme. Loans under government programs come […]

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Car Loans Lending Criteria in Canada

April 2, 2014

Bank customers are offered financing for the purchase of motor homes, sports vehicles, cars, campers, and RVs. Secured loans come with a lower interest rate because financial institutions take less risk. Check for credit insurance, prepayment penalties, and other hidden fees and charges. An unsecured auto loan is another option whereby collateral is not required. […]

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