Business Financing Explained
In the world of finance there are many different options available to businesses of all sizes and types. The overall goal of business financing is to raise the capital to meet your business’s current needs. Those needs can range from equipment purchases to renovations, all of which will help your business to grow further in its industry. Next is to get this capital at the least cost for your business to ensure you will be able to meet the repayment obligation.
Top Business Financing Options
The first financing option that most business owners will look to is a bank loan. Lender approval will be based on the businesses credit history and rating, type of business, number of years in operation and assets. Most lenders require businesses to place an asset as security on a bank loan. If the business defaults on repayment the lender can seize the asset and sell it to cover the cost of the loan.
Personal and Business Background Check
Personal Credit Report
Business Credit Report
Income Tax Return
Financial and bank statements
Terms and Conditions of a Bank Loan
Advantages to Lease Financing
Why Choose Supplier Credit
Factor Business Debts
Lender Requirements for Factoring Business Debts
Benefits to SBA Loans
Benefits to Government Grants
Why Sell Stocks?
Benefits To Issuing Bonds
Merchant Cash Advance
Benefits to Merchant Cash Advances
Secured Working Capital Loan
Why Choose Secured Working Capital Loans?
Unsecured Working Capital Loans
Lender Requirements for Unsecured Working Capital Loans
Start Up Loans
Why Choose a Start Up Loan?
Terms and Conditions To Short-term Loans
Uses for Long-term Loans
Revolving Check Credit
Benefits to Revolving Check Credit
Why Choose a Professional Loan?
Terms and Conditions to Micro-Loans
Franchise loans are designed for the purchase of a franchise business only. They can be used to meet all start up costs of the business. Franchise loans easily obtained by those looking to start a national franchise business.
How To Get a Franchise Loan?
Franchise loans can be obtained from a local lending institution or from the franchise company itself. Many franchise companies offers their own financing to inspiring entrepreneurs looking to invest into a franchise business.
Debt financing is provided by banks and other traditional lenders. The loan receive is typically limited to the businesses assets. The capital received is used to pay off debts.
Why Choose Debt Financing?
Debt financing is a great way to consolidate a business’s debts into one low monthly payment. Debts in collections will be taken out of default and the business owner will be able to mend their credit and open up new financing options for themselves where needed.
Business Acquisition Loans
A business acquisition loan is used to purchase an established or existing business. Borrowing business owners are able to receive up to 90% of the cost of the business they wish to purchase. This is a great option for existing businesses to buy out other businesses or an new entrepreneur to get started. Lenders are more willing to offer a business acquisition loan because they have a thriving business that they are financing, it is looked at as low risk.
Lender Requirements For A Business Acquisition Loan
For existing business owners or new entrepreneurs to purchase an existing or established business they must present the businesses financial history, business plan and legal documentation. The purchasers credit, financials and assets will too be taken into consideration for loan approval.