Are you looking for a loan for your business? It is important to find the right one for you, whether you need it for cash shortfalls due to unpaid invoices; for equipment; or even for a personal reason. It is also important that the business loan you acquire is fast. There are secured and unsecured fast business loans you can acquire if you are in need of financial help.
What fast business loans are available?
Here’s a list of different types of business loan and some features that come with it:
- Truck and equipment financing — You can get truck and equipment financing if you need to add, replace or upgrade your existing fleet of hauling units. This type of loan can be used in purchasing your own business truck for faster delivery of goods.
Usually, lenders are able to secure truck and equipment finance against the asset being purchased.
- Car loans — The proceeds from a car loan can be utilised to buy a vehicle. The vehicle you are purchasing can be used to guarantee the loan. You can borrow between $1,000 and $100,000 with loan terms that can extend up to 7 years.
Car loans can come in different forms, such as standard car loan (bank, credit union, or standalone lender), commercial hire purchase, finance lease, novated lease, operating lease, and chattel mortgage. These loans are designed for businessmen and self-employed.
- Small business loans — These credits are intended for small businesses to get off the ground or for taking care of the expenses in the existing one. Secured loan and short-term loan can be considered as small business loan.
Lenders will require information about your business financial history. It is also necessary for you to prepare a convincing and detailed business plan which should include cash flow forecast and a profit and loss budget. Present your business to lenders in a favourable manner by understanding what they look for and what they consider risky.
- Self-employed personal loans — This type of loan is usually more expensive than a traditional loan. You can apply for a low documentation loan if you cannot meet the full documentation requirements, which includes tax returns and financial statements.
You can also look for a cosigner loan. This will allow you to apply with another person who has stronger qualifications to meet the eligibility requirements.
Putting up a collateral as security for your loan can be a requirement depending on your lender.
- Short-term finance — Also known as working capital financing, short-term finance is normally needed for uneven cash flow and the seasonal pattern of business. This type of loan is also used to finance all types of inventory and accounts receivables.
Comparing your fast business loans options
The following factors can help in comparing your fast business loans options:
- Reimbursement schedule — You should know if the set out repayments are flexible and able to meet the pattern of the cash flow of your business. You can make your loan repayments on a weekly, fortnightly, or monthly basis. If your prefer to stay on track, a strict repayment schedule might work for you.
- Loan amounts — It is essential to figure out just how much financial obligation your business can handle. In case you are uncertain on how much to borrow, there are some loan options that can provide you with ongoing credit to draw down on as you need to, such as a line of credit.
- Interest rates and fees — Application fees and rates depend on the lender you borrow from. To ensure they are competitive, compare the costs of similar loan products against each other.
- Own or lease new equipment — Lenders may give you the option to own or lease your new equipment. It might be better for business owners with limited capital to lease the equipment that must be upgraded annually. Although it may cost you more in the long run, leasing equipment and tools preserves capital and provides flexibility.
It’s better to purchase the equipment if it has a long usable life. Ownership also means reduction in your taxes, though the initial costs can be high.
- Loan management — Most lenders provide online account or apps for you to easily manage your loan. Do some extra research and look for lenders that provide this service.
Check out Cigno Business Solutions products for you to compare and find the best fast business loan suitable for your financial needs.