BUSINESS LOAN OVERVIEW

There are several banks and financing companies offering business financing for small and medium-sized businesses. However, choosing which best suits your requirements is not as easy as it sounds. Here are some helpful tips to help you choose.

However, one must understand the basics of a business loan before applying. Familiarize yourself with terminologies such as amortization, interest rates, pre-approved, refinancing, pre-termination, terms, and so on as these terms more often confusing especially for first-time borrowers. Poor knowledge on the matter might cause or lead to losing part of your business or getting stuck in repayment.

Debt and Equity Financing

Debt financing is not as complicated as it sounds. It’s similar to a mortgage or car loan from banks and other financial institutions. Applying for any type of debt financing is faster as it only takes a few days to get a credit decision.

Also, depending on your requirement, debt financing can be a long or short-term agreement between you and the financing institution. The amount also varies depending on several factors such as business and personal cash flow. This gives you flexibility in repaying the loan.

On the other hand, there’s equity financing which comes from investors or venture capitalists. These investors and venture capitalists are more likely to be part of a bigger entity (firms or corporations that are into investments). If you are planning to obtain equity financing, you have to be prepared to lose a part of your business’ ownership to your new partner. Giving up ownership also entails limited decision making so be sure to read through the fine print.

Getting any type of business financing can make or break your business. Finding a financing partner that checks all the boxes can be tricky as well. However, without it, growing your business can be a real challenge.

Research and a thorough review of all the available business financing options will help you understand the importance of business loans and help decide which one works best for you and your business. The good news is that all relevant information to help you understand the importance of business loans so you can make an educated decision is available to you online.

At Sales and Loans Brokerage, we help our prospective clients choose which loan is the best fit for them by providing options based on their needs and qualifications. Thus, making it easy and accessible for business owners nationwide.

See how we can help you get a pre-qualifying loan by answering our online loan assessment form. You may also visit our FB Page or website to start your application.