BUSINESS LOAN TERMS - Payment Processing News

BUSINESS LOAN TERMS

Business Loan Terms

Business Lines of Credit is for businesses with an inconsistent cash flow. Either businesses that needs to borrow a small amount of capital, and businesses that use invoices.

Different types of lines of credit:

Cash Account, the most basic line of credit – which you can access when you’re in need of capital; whether you’re making a large purchase or covering a temporary gap in cash flow. You only have to pay the interest on the amount that you borrow; with this form of financing, the money is always available when it’s needed.

Inventory Line of Credit – specifically intended for purchasing inventory.

This kind of loans give the merchant, two advantages: 

  •  First of all, you can purchase inventory wholesale.
  • Second, purchasing inventory won’t take a large amount out of your cash flow because you’ll be paying in increments instead of one lump sum.

Invoice Financing – basically, this is a line of credit where invoices are the collateral.

Personal Loans Used for Business: Startups and young businesses, merchants who have excellent personal credit. Furthermore, personal loans are term loans that can be used for a number of purposes.

If your business is new to qualify for a business loan, consider using a personal loan.

Short Term Financing: Is for young businesses experiencing rapid growth.
Short term financing covers merchant cash advances and short term loans.

Term Loans: Is for Businesses that need cash to fund one-time expenses like equipment purchase/real estate or expanding a business. Term loans are basic, everyday loans. The merchant receives the capital in one lump sum and repayments are almost always monthly.

For more information about Loans/Financing call us at 888-996-2273

 

 

 

September 28th, 2016 by