Business Loan Guide

What is a business loan?

Any financing given to a business that has to be repaid in within a specific period with a certain amount of interest rate is called a business loan. A business loan is given by any financial institution including a bank, credit union, organization, or an individual(s). A business loan is granted to nonprofits, partnerships, limited liability companies, sole proprietors, and corporations.

Business finance in America started in the late 18th century with the nation’s first banks. The business owners borrowed money from the banks to pay workers’ wages, settle with product suppliers, or invest in new equipment.

What are the types of business loan?

Loans can be secured or unsecured, long-term or short-term loans. Common types of loans are secured loans, unsecured loans, small business loans or SBA loans, lines of credit, equipment financing, and working capital loans.

Business loans have three main categories: small business loans, commercial mortgages, and equipment leasing. Small business loans include asset-based loan, bridge loan, working capital loan, accounts receivable financing loan, factoring invoice loan, retail merchant cash advance loan, business credit, business equity loan, franchise loan, SBA loans, business line of credit, and purchase order financing loan.

Equipment leasing includes loans for agriculture/forestry equipment, aircraft and transportation equipment, restaurant equipment, printing, phone, office, musical, industrial, healthcare/medical, farm, exercise/fitness, construction, and computer equipment.

Business loans products also include construction loans for new homes, renovation, development loan, commercial and residential; healthcare and medical loan for assisted living, congregate care, hospital, medical clinic and skilled nursing facility; hotel and motel loans for full-service hotel, limited service hotel, resort and suite hotel, convention hotel, and flagged motel; industrial building loans for manufacturing, office-warehouses, research and development, warehouse and multi-tenant, and warehouse and single tenant; and retail center loans for car care center, community centers, convenience stores, factory outlet, regional malls, single-tenant building, strip with anchor, and strip without anchor.

What are the advantages of getting a loan?

Getting a business loan can do your business some help. Short-term business loans can be utilized for start-up costs especially if you don’t have the funds to cover these costs and your need a push to continue business operations. A short-term loan can also be used to fund emergency repairs and maintenance, and for temporary cash flow situations. Loans make real sense if you want to legitimize your spending and secure an amount of funds to spend on your business. A business loan can also be used for purchase inventory, expand operations, rent/buy/or lease equipment, hire more staff, and marketing expenses.

Related articles

• SBA Loans and SBA Lenders (dohertyassoc.com)
• Guide To Small Business Loans for Women (dohertyassoc.com)
• Getting to Know Patriot Express Loan (dohertyassoc.com)
• Applying for SBA Loans (dohertyassoc.com)
• Applying for SBA Loans (fitbiztools.com)
• What You Need To Know About An SBA Loan Lender (dohertyassoc.com)
• How To Get A Business Line Of Credit (dohertyassoc.com)
• The Benefits Of A Secured Business Loan (dohertyassoc.com)
• Obtaining Government Funding For Small Business (dohertyassoc.com)

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