Financing Your Business
One key to a successful business startup and expansion is your ability to obtain and secure appropriate financing. Raising capital is the most basic of all business activities. Raising capital may not be easy; in fact, it can be a complex and frustrating process. However, if you are informed and have planned effectively, raising money for your business will not be a painful experience. Contact our Loan Professionals when you are looking to raise money for your business!
Two Basic Types Business Loans:
- Short term Loans
- Longterm Loans
Borrowing Money
It is often said that small business people have a difficult time borrowing money. This is not necessarily true.
Banks make money by lending money. However, the inexperience of many small business owners in financial matters often prompts banks to deny loan requests.
To be successful in obtaining a loan, you must be prepared and organized. You must know exactly how much money you need, why you need it, and how you will pay it back. You must be able to convince your lender that you are a good credit risk.
Types of Business Loans
Terms of loans may vary from lender to lender, but there are two basic types of loans: short term and longterm.
Generally, a short term loan has a maturity of up to one year. These include working;capital loans, accounts; receivable loans and lines of credit.
Longterm loans have maturities greater than one year but usually less than seven years. Real estate and equipment loans may have maturities of up to 25 years. Longterm loans are used for major business expenses such as purchasing real estate and facilities, construction, durable equipment, furniture and fixtures, vehicles, etc.
Contact our Loan Professionals when you are looking to raise money for your business!
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