Business Loans – More Common Uses
About 82% of businesses that fail are due to problems of capital. That’s why companies, regardless of size, sooner or later need business loans or other lines of credit in order to be able to continue developing projects effectively. All companies are the same and all loans don’t have the same requirements, the most common uses of business loans for the following:
- Purchase of materials, products or machinery.
- Pay providers or payroll on time.
- Hiring new employees.
- To pay or consolidate current debts.
- Acquisition of a new property.
Just as it is impossible to drive a car that has no gas, running a business without money is very difficult. Working capital infusions help companies continue to operate and grow without worries. This article will help you if you have a company or just want to understand the different options available for business loans up to $500,000 from 1.29% on as fast as 1 day.
Business Loan Options
There are several business loan options for businesses and they depend more on the size of your company, the amount you need and what is the use of the loan. The more established and the higher your monthly earnings you will have more lower cost options for capital at your fingertips. These are some of the financing options or sources that businesses have in the USA:
- Line of credit: This works as a rotating capital account. You can use the amount you need (as long as it is within on your limit) when you need it, as if it was a credit card.
- Business loans: These loans work as personal loans. They are fixed terms and interests and most do not require any kind of collateral.
- Commercial loans: These loans work as mortgages. They are fixed deadlines but require a guarantee as a property to be granted.
- Team loans: These loans are used to buy new equipment or machinery for a company. The equipment purchased with these loans work as a loan guarantee in some cases.
- SBA loans: These loans are backed by the American government and are special for small and medium enterprises because they have fewer requirements and may be of lower cost.
- State or federal subsidies: State and federal governments have subsidies for companies that are part of certain industries. Click here if you want to see if your business qualifies for some government subsidy.
Business Loan Requirements
The good news is that there have been many more business loan options appeared in the past years. Thanks to the Internet the loan options are more diverse which also reduce the level of requirements you would have needed to meet before. These are some of the general requirements that a company needs to be able to apply for a business loan:
- Business Age: Your business should have a minimum of 2 months of operating (we also work with loan options for new businesses but since you don’t have profits it’s harder).
- Monthly income: Most lenders require your business to have a minimum income of $7,000 per month (we refer to a gross monthly income before taxes, costs and salaries. Not the final gain you have left.)
- Other debts: If you have a lot of other debts (more than 50% of your yearly earnings) you may still be able to get a loan, but it will be harder.
- Potential warranties: By using any property or equipment as collateral for the loan you would have more offers and lower costs, as the loan would be less risky for the lender. But this is not necessary to get a loan.
- Loan use: There are lenders who specialize in machinery loans or other needs, so it depends on the use of the loan you may have better options.
- Credit score: You need to have a minimum personal credit score of 500.
How To Apply For Business Loans
Applying to business loans can take minutes or almost months depending on how you do it. With traditional banks you have to first get an appointment, fill out hours of paperwork required and wait weeks until you receive an answer. Thanks to the Internet, you can now also compare online loan offers for free and in a matter of minutes. We recommend comparing both options and choosing the right choice for your business. In the case of SuperDinero, we work with several lenders who help businesses across the United States. Through these lenders you can apply up to $500,000 from 1.29% interest. In case of being accepted you will receive the money in as fast as in 1 business day. The process to apply is super simple:
- Compare our business loan options
- Apply for free to the options that call your attention (the more you compare the more you can save).
- Talk to an agent and explain your situation in minutes.
- If you are approved you receive your money in 1 business day.
To apply for a business loan and compare your options for free click here. We will gladly help you to explore the best options for your company. We want to help you make Bill Gates tremble with fear, so don’t wait any longer.