Types of Private Business Loans to Boost Company Growth
Looking to boost the growth of your business? Of course, you are. Here are 5 types of private business loans to help you achieve your growth goals. It is often a point of pride to lead your business into a time of high growth.
These points are often a result of market success and clever positioning.
This high growth does not happen by itself, and often a business looks into private business loans to spurn this final push for growth. Taking out big loans is a huge decision so that it will need lots of thought. To help in your big business decisions, we have broken down some of the major private business loans for you to consider. Here are 5 of them laid out below.
The Private Business Loans for You
Private business loans have much in common with the standard loans that anyone may go into a bank and get. The big difference comes in the scale they cover and how the loan officer may structure repayment plans. Let’s break down the five types.
Line of Credit
A line of credit is like a credit card taken to the next level. A line of credit will have a minimum monthly payment, a limit on the amount of money you can charge in total, and an interest rate on unpaid portions.
A line of credit can stretch far for even the smallest of businesses, sometimes going to a million dollars. The cap will depend on the business in general and its credit.
Term Loan
A term loan is a one-shot loan often built around a particular project or financial goal. As such, a term is set on how extended repayment will be and how large the loan needs to be. A lot of the details of the term loan will need negotiation. This makes them harder to shop for, but it does make the loan itself cover what you need with no excess.
Asset Based Lending
Sometimes a business does not have the liquid capital to back up reasonable loan repayments. Instead, they can use their various physical assets as collateral in asset-based lending. This article goes deeper into the terms, as it can become a complex process depending on the types of assets and how much the loan will be for.
Invoice Financing
Sometimes a loan is not for pure growth but instead for growth recovery. That often comes from buying an expensive service with a major invoice. Invoice financing will often take care of a large portion of an overdue invoice. This helps you keep whatever service you hired happily and your reputation intact.
In the meantime, you transfer the invoice payments to your new lender, often at a smoother rate and a more flexible repayment plan to take the heat off of your business.
Equipment Loans
Instead, you aim for equipment loans when you have no assets to work with. These are loans with a specific purpose, often tied to a particular seller. This is a great way to get it fast when you need a vital piece of equipment for your business.
Often major equipment for a business can have a prohibitive cost. This lets companies get off the ground and push towards high-growth periods without needing to slow-grow the capital.
Keeping Informed for Better Business
Equipment Loans
One of these five private business loans could be the ticket to pushing your company into grand new ventures and continued prosperity. Remember to look over the details and shop around for the best deal.
In the meantime, there are many more decisions for your business’s future. Staying informed on what may impact you most. For that, we have piles of articles covering a host of topics.Check them out today!
