Nurturing new business horizons
Business people always require finance either for starting a new venture or for expanding the older one. The finance must come to them easy and quick. Considering their urgent requirements, loan product quick commercial loans has been specifically designed. Business people can utilize quick commercial loans for making investments in infrastructure, buying products and services, starting new project or expanding the established one.Business persons can avail quick business loans either in secured or unsecured. Secured business loans, collateral is placed against the amount that one desires a loan. It has lower interest rates and higher repayment period. Unsecured business loans do not assert anything against the lending amount. The advantage of this loan is that the amount is more or less, free of risk. In this loan it has little higher rate of interest and shorter period of repayment. Larger loan will depend on the higher equity in the collateral.
business loans not only can be used for opening new business, but also can be used for, expanding business, buying business, purchasing machineries or equipments, paying the salaries and consolidating the debts of business. Bad credit borrowers are also accepted in quick business loans, because credit history does not matter in these loans. But the thing is that bad credit borrower has to pay slightly higher interest rate compared to good credit borrower. But bad credit borrower also can get business loans at lower interest rate, because there is competition among lenders.
Once you have selected the lender, you should go through the loan agreement. The fine print should be read carefully. Check if it is really a quick loan. Any penalty on early repayment may create problems later on should you find excess money and want to repay the loan earlier. You should see that the repayment terms are clear so that your business account doesn't incur any additional fees.
I agree that business persons should adequately prepare themselves and read through the fine print of the loan agreements very carefully.
But what advice do you give the business person who has adequately prepared for his or her approach to a lending institution and is not able to reach to the point where they can actually read the fine print of the loan agreement.
Based on my experience, lending institutions do not seem to be aware that business people require financing in order to start or expand on established business ventures.
I have great credit. I’ve paid off previous bills, and I’m paying my current bills on time. But because of the current level of actual activity in my business, I want to expand my services.
This expansion has the potential to increase my bottom line. But this expansion requires additional equipment and money that my business does not have.
Because I placed so much faith in my ‘great’ credit, I approached several banks and applied for a loan with a business line of credit for $350,000.
I was informed, as a matter of fact, that because I am writing off all my expenses to the bottom line of my business, I did not qualify for this type of loan.
The banks I approached were basically telling me that my business is not making enough income.
What existing small business loan resources cater to business owners in my position?
I am desperately trying to keep pace with a highly competitive industry.
Posted by
Matthew |
5:54 AM
At one point, I once believed that great credit was all that was needed too, when it comes to loans and lending money or assets of any kind. This is really not the case.
Honestly, that itself is a Jurassic concept.
My experiences with banks and various lending institutions taught me that the business’ bottom line is a fundamental issue considered by today’s financial organizations as part of their loan approving process.
They need to be assured that you make enough money after your expenses to cover their loan payments.
Even though I had a great credit rating, I was still just not making enough money to secure the type of loan I needed, especially when these banks considered the amount I was requesting and saw that after I paid my expenses, there was not much finance left.
However, I did come across an ideal resource, www.thesnaploan.com.
This website seems to be millenniums ahead of its time, when it comes to current lending practices.
I was approved for a revolving line of credit that I can pay off and use again if I so decided. I really love this option.
Posted by
Mark |
12:16 PM