If you are like most entrepreneurs you may have started your business with nothing but your self, a computer, and a business model. You have met success and are looking to grow and expand your reach. However, with business growth comes the need for necessities such as an office space, employees or perhaps a company car. In order to ensure the success of your brand and business reputation you need to invest, but the funds may not be there. Financial lenders like advancefundsnetwork.com provide a variety of services to help new and expanding businesses while playing working roles in helping to make your success skyrocket into new frontiers.
Finding the right type of loan to apply for may sound like an overwhelming endeavor, but in reality this process is simple. Understanding the criteria for each loan type will not only make the process easier for you, it will save you time that might be spent applying for loans you don’t quality for. But at the end of the day you can always phone a professional lender to speak with you about your options. In the meantime, here are 2 of the most popular business loan types:
- Unsecured loan or credit line: These types of loans aren’t backed by any collateral and require that the applicant have exemplary credit or a business with a long established history. These loans are generally harder to get approved for, as the lenders take on a certain level of risk by not having anything to back the loan except for the applicant’s word he will repay it.
- Secured loan or credit line: This is a very common type of business loan to apply for. As long as the applicant has good credit, proof of acceptable income, and collateral, one generally gets approved. In terms of collateral most business owners will put up their home or their business property to back the loan.
If you are in need of a smaller amount of cash, then you may want to nix these options altogether. Sometimes when one is expanding their business, they simply need to make upgrades to computer equipment or stock more inventories. If this is your case, consider a merchant cash advance.
Cash in hand
A merchant cash advance serves many purposes to the needs of an expanding business. For example, some business owners may need to invest in a company car but their credit dictates a down payment at the dealership. Often funds are tied up in payroll or in stocking inventory. This is when the merchant cash advance is a great option, as extra funds can become available to you within 24 hours with no credit check.
Know your options
According to ‘Entrepreneur’, getting a business loan can be complicated, as the money is out there, but there are so many loan types that it is easy to apply for the wrong kind. Explore your options and know which loans you qualify for before you take time and effort to apply for them.
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