Whether
it is a start-up or money to expand and grow, a small business loan may be
needed. For those who need some capital, the Enterprises television show
reviews small business loan information.
To
start, there are three different types of loans to consider:
Government-backed
loans
Traditional
bank loans
Alternative
Lender loans
Ask
and answer these questions before choosing a source:
- How much money is needed?
- How long will it take to pay the loan back?
- How much collateral is needed to secure the loan?
- How fast is the loan needed?
Small
business loans granted by the Small Business Administration are for its
partners (banks, micro-lending institutions, etc.) and guidelines are set by
the administration for the loans. Small business owners have a choice as to
loan types, and each one comes with its own set of parameters and stipulations
on how the money can be used and when it has to be repaid. These types of loans
are preferred by entrepreneurs.
Conventional
bank loans offer a little more room on what a business owner can do with the
money. These loans are less stringent than SBA loans, carry low interest rates,
and are generally approved faster. Keep in mind that the repayment schedule is
shorter than an SBA loan and may include a balloon payment at the end.
Alternative
lenders are better for businesses which don’t have an excellent financial history.
Loan approvals occur faster. However, interest rates tend to be higher. The
Enterprises television show notes that these types of loans are preferred by
start-ups because of how fast the approval process is.
Consider
every loan option before making a decision to borrow money for a small
business. Be sure to know the answers to the questions above. Make an educated
and informed choice and move forward in the success of small business
endeavors.
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