What are small business loans? A business line of credit can be used for short term cash flow management, to make special or seasonal purchases, to re-stock inventory or supplies or for just about any other reason that can satisfy the banks demand for its usefulness to the business.
This gives unsecured small business loans between $5,000 and $25,000 with very little paperwork, answers typically in 3-5 days, interest rates presently at 7.75%, only $60 per month per $5,000 borrowed, funding in two weeks , and monies wired directly to your business account.
Conventional Business Loans are loans that are either unsecured meaning no asset is used to approve the loan or secured and called “asset based loans” where assets from inventory, equipment, accounts receivable or real estate are used for underwriting for loan approval.
Truth in Lending Act: A federal law that requires the lenders to disclose some key information related to credit transactions, like interest rates, finance charges, and the cost of the loans to the borrowers, so that they can compare various types of loans.
They can buy the equipment for one dollar or ten percent of the fair market value of the and more companies are leasing today as opposed to paying cash or using bank lines or loans. Depending on the stability of the business, the credit history and several other factors the maximum amount of loan offered is decided.