When considering needs and the potential risks involved with any commercial loan, it's vital to have a full view of your company's overall health. This includes potential risk factors that could impact any loan. It's also important to consider the potential advantages and disadvantages of all types of commercial loans available. A loan for buying new equipment, for example, can have different terms than a short-term emergency loan to cover unexpected expenses. Having these answers ready can help make the overall process more efficient-and get you the funds you need faster.įirst, it's important to consider why you need the loan and how you'll use the funds you receive. Finding the right loan for youīefore making any decisions on any of these types of commercial loans, there are some key things to consider. This allows you to grow while finding solutions that keep your cash flowing. ![]() Many lenders also offer financing and lease options for both new and used equipment. They may also help you realize certain tax advantages over the life of the loan or lease.įor businesses with heavy equipment and vehicle needs like trucks, tractors, trailers and construction equipment, these types of commercial loans may help finance 100% of the purchase price. These types of commercial loans and leases are available with varying term lengths, depending on your business's needs. Specialty financing like equipment loans and leases can help your business finance high-cost items, like machinery you need to manufacture your products or vehicles you need to deliver them to customers. ![]() Because real estate is often among a company's highest costs, repayment terms for these types of commercial loans tend to be longer than others-typically between 5 and 20 years. Whether you're ready to purchase your own space or refinance the one you have, business real estate loans can help you get the funds you need for your physical location.īusiness real estate financing generally includes flexible terms and loan amounts, and lenders may offer fixed or variable interest rates. Your business might use term loans to address debt restructuring, building improvements, working capital, equipment purchases or staff expansion. Meanwhile, variable loans typically start with a lower rate but will change over time, depending on how prevailing interest rates shift. Depending on your situation, fixed monthly payments could make it easier to factor a term loan into your business's budget. Interest rates on these types of commercial loans may be fixed or variable. Unsecured term loans are also available-although you might find lower interest rates with a secured loan, which banks tend to see as less risky. Term loans may be secured against other collateral you own, like real estate or equipment. These types of commercial loans usually offer higher amounts than a business line of credit, as well as flexible terms and competitive interest rates. When your financial needs are more significant, a term loan might be a better fit. ![]() Once you pay back what you've borrowed, your full credit line is once again available for use. Many lenders even offer interest-only payments to help ease cash flow crunches. With a line of credit, you typically only pay interest on the amount you draw. You can apply for a line of credit well in advance of any financial needs, and it may provide a quick fix for cash flow gaps or working capital needs. Business lines of credit are one of the most flexible funding sources available.
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