When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.
If you want to start a small business, you know how expensive this can be. Because of this, you will need to get some type of loan to help you get started. Below are three types of small business loans that are available to you so you can start growing your new business.
Bank Term Loans
Bank term loans will work well for you if you have great credit and need a lot of money for your small business. This will not be a good option for you if you have bad credit, however. Some lenders may also be reluctant if you are starting a new business so you will have to shop around if you want this type of loan.
With this type of loan, you borrow the money upfront, and then you will pay back the money with interest each month. You and the bank will set a time limit to pay the loan back. This may be three years, five years, or more. How long you have does depend on the bank. In most cases, the loan can be long term, however.
Equipment Loan
If you need to purchase a lot of equipment to get your business started or you need to buy a new vehicle, you should consider an equipment loan. This type of loan is asset-based, which means the equipment that you purchase secures the loan for you. This is beneficial as you will not have to worry about putting up collateral.
In most cases, equipment loans will have low interest rates. This does depend on your finances, credit score, and the type of equipment you are purchasing. This would work well if you have equipment that you do not want to purchase but instead want to lease. Leasing equipment will let you know if the equipment will work well for your company. If the equipment does not, you can simply quit the lease when it is over, or if you want the equipment you will know it is not a waste of money to purchase it.
Invoice Financial Loan
If you are a business that invoices your customers, you never know if all the customers are going to pay on time each month. Some customers may not pay at all requiring you to take action against them. Even if you do this, it may take some time to get the money you are owed.
To help with this there is an invoice financial loan available for new business owners. With this, you will use the outstanding invoices that you have to get the cash advance that you need from a lender. The unpaid invoices are used as the collateral for the loan so your credit does not matter, and you will not have to sacrifice collateral that you own.
These are just a few types of business loans you can obtain. Contact a lender, like DAC Loans, for more help.
Share