Coming up with a profitable business idea is just half of the company creation process. Pooling money to sustain the enterprise is the other crucial half. If you already have an awesome idea to start with, the next wise move would be to look for and take advantage of the right choice of business loans. Good thing there are several options today that are suited to the varying needs of your company, including the working capital, asset acquisition and project development. To cover all the basics, here are the top four loans you might consider applying for:
1. Equipment loan — If you’re looking to buy equipment to start your operations, it might help to apply for an equipment loan. This type of loan allows you to borrow money to buy equipment and use it as collateral for the loan. You can use the machines and earn from them while paying for your loan.
2. Short term business loan — Your business might also need sufficient cash on hand to sustain its daily operation. With a short term loan, you’ll have access to cash you can use as a working capital or for tax payments, payroll, debt refinancing and inventory expenses. As most short term loans come with higher interest rates, it’s highly recommended to pay back faster, preferably weekly or bi-monthly.
3. Line of credit — It’s also wise to apply for a business line of credit, which can provide you with cash you can use for different purposes. This can also be used as a source of working capital, fund for equipment purchase and many more. You can also opt to have an unsecured or secured line of credit, as well as a “one off” or “revolving” credit line.
4. Invoice financing — If you’re operating a B2B business, invoice financing is another option you might like to consider. This loan type allows you to take out cash in advance based on a percentage value of your expected receivables. Lenders of this loan type do not usually ask for collateral or a credit check for borrowers.
With the plethora of business financing solutions on the market today, choosing the right loan type can be quite tricky. But if you have one or two of the types above, you’ll have enough funding for your company. Are you now planning to apply for one of these loans? If you are, don’t hesitate to visit the loansolutions.ph site to learn more about today’s leading providers of these credit types. Loansolutions PH is the country’s leading financial solution concierge, connecting those in need of funding with reliable lenders. Apply in as easy as 3 steps and follow up the status of your application using the Check Loan Status tool available on site.
This article is contributed by Maricor Bunal. Mari writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on finance. Also, she’s fond of 9GAG, so you might read some random stuff over here.