Products – Find The Right Business Loan For You
A Traditional Term Loan is probably the most common form of business loan, so it’s pretty easy to understand. You borrow a fixed amount of money – often for a specific purchase you’re making for your business – and pay the loan back over a fixed term, most often at a fixed interest rate. Click for more information.
A merchant cash advance was originally structured as a lump-sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales. The term is now commonly used to describe a variety of small business financing options characterized by short payment terms (generally under 24 months) and small regular payments (typically paid each business day) as opposed to the larger monthly payments and longer payment terms associated with traditional bank loans. The term “merchant cash advance” may be used to describe purchases of future credit card sales receivables, or short-term business loans. Click for more information.
An arrangement between a financial institution, usually a bank, and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain. The borrower can draw down on the line of credit at any time, as long as he or she does not exceed the maximum set in the agreement. Click for more information.
Accounts receivable financing (factoring), will allow a business owner to access money owed to them, immediately. Many times business owners will invoice their customers, while allowing a grace period of 30+ days before the money is actually due. However, there are times where that waiting period will put a great financial strain on the businesses cash flow, and immediate access to that capital is imperative. This is when “factoring” your invoices can help out tremendously. This can be optimal because the focus is on the business that owes the receivable and not the company receiving the advance. Therefore, if your credit is poor, but the person who owes you is financially strong, the lender will be inclined to advance a portion of your outstanding invoice, in exchange for the entire amount. Click for more information.
As opposed to asking for capital outright, equipment loans are more secure than others, and lenders are sometimes more willing to work with you. This type of financing helps you get the new equipment for your business right away. When your business needs to buy a piece of machinery that is too expensive to do so with cash, you will benefit from an equipment loan. This can be a wonderful way to increase your top line, buy adding a new piece of equipment. At the same time you can preserve your cash flow by doing so with someone else’s money. Click for more information.