Business enterprise loans can be defined as funds lent for a defined amount of time at a specific interest rate to a specific person or people that operate a small business or plan to operate a business enterprise. This definition is very wide, but so are the various types of loans available to small business people. Deciding on which type of business enterprise loan that you and your firm will benefit from the most is very important. Often times, a start-up small business or someone that has never owned a small business will find themselves more or less applying for a “personal” loan. This can be a very risky undertaking, mixing business loans with personal loans, however, often times it is the only available means for first time business owners. Find out more Asset Finance
One of the first things personal small business owners need to do is establish small business credit. Talk to Asset Finance Business enterprise credit can help you get a business only loan without using your personal credit. Establishing small business credit can be done by:
1.) Opening up a business credit card account and paying it in full.
2.) Buying equipment and materials from companies that will report good standing to the business enterprise credit bureaus.
3.) Having a good business plan with prospective earnings, letters of intent, and any type of customer contracts already laid out.
All of these types of endeavors can help in receiving a business loan. Often times, financial institutions require in-depth small business plans, be prepared to spend days working on just the certification paperwork prior to applying for a business enterprise loan. A business only loan can be obtained in the business name without use of personal credit as long as the business can justify the loan amount and the capacity to pay it back.
There are several different types of business enterprise loans available, ranging from those secured with collateral, non-secure loans, which are based upon the credit worthiness of the applicant, and even government loans for small business ventures, women and minorities. Govt loans are those loans secured by the government; in most instances these loans are available when the business enterprise or owner can prove that the community will prosper based upon the business at hand. For the most part, government loans are based upon personal credit.
The basis for which you may need or require a small business loan may vary. Some of the most common small business loans available to business enterprise owners are:
Acquisitions or a loan to acquire an existing small business
Inventory loans
Account Receivable Loans
Working Capital Loans which converts a firms assets into working capital
Equipment Leasing
Commercial Property loans
Warehouse funding
International small business loans
Franchise loans
One of the most important tools when deciding on what type of small business loan your company needs is analysis. Researching the different types of loans available to you and your firm can save you funds. First, look into the different type of business loans available to you in your state. Many states have government loans available; some even offer grants, which is money available for specified purposes that do not require repayment. Research the different type of Government loans available.
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