5 Types of Commercial Loans to Consider for Your Business
I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster...
If you have a small business and need funding to grow into a new space, purchase a new piece of equipment, take advantage of an exciting new revenue opportunity, or simply maintain cash flow for everyday expenses as you prepare for a busy season, a commercial loan can be a great way to quickly get the cash you need.
What Is a Commercial Loan?
Though it may sound more complicated, a commercial loan is, simply put, a loan designed to be used for commercial purposes—i.e. a small business loan.
Commercial loans are available from both banks and from non-bank online lenders, and there are different types of commercial loans designed to fit the needs of every stage and type of business, as well as almost every conceivable expense for which a business might need to borrow funds.
Types of Commercial Loans
The types of commercial loans best suited to your business depend on the stage of business you’re in, how much revenue you have, what your financial history looks like, how you plan to use the funds, and a number of other factors.
Term Loans
When most people think of taking out a loan for any purpose, a traditional term loan most often comes to mind. In a business setting, this is the type of commercial loan in which you borrow a lump sum of money at a time and then repay that loan in fixed monthly installments. Term loans can be carried over a number of years to cover one or a variety of business expenses, and borrowers are charged at an annualized interest rate for the life of the loan.
Equipment Loans
Are you investigating various types of commercial loans for funding a major purchase of machinery or equipment for your business? When purchasing a vehicle, manufacturing equipment, computers, or almost any other fixed high-cost asset for your organization, choosing an equipment loan can be a great way to match up the terms of your funding with your purchase.
Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article HERE and share your thoughts with me afterwards: call 0401 714 406 or email me at [email protected].
Thanks,
Darren