BUSINESS LOANS

There are many types of Business loan are there in market however you need to priorities your needs because different loans have different interest rates and fees.

You may guess it by now !! yes, these loans are ‘secured’ against an asset, often named to as ‘collateral’ or ‘security.

These type of business loans are generally provided for a fixed period and backed by property, machinery, or vehicles.

Secured loans are generally low interest rates because lender has less risk involve in it.

If you want a bigger loan amount, then a secured loan is probably your best choice Because they are lower risk, lenders tend to be willing to loan higher amounts.

Unsecured business loans are those which are mainly require more information as lender needs to assess your existing financial situations and the decision depends on cash flows, turnovers, and credit history.

These loans may be fixed or variable interest rate. Mainly unsecured loans are used for working capital. some business requires more cash flow then other and hence need money for operations.

• Purchase stock and inventory
• Business Expansion
• Random business expenses
• More Business equipment

Sometimes Business needs money to purchase equipment.it may be vehicles, tools, machinery and even a technology.

These loans are also considered as asset loan. And Chattel mortgages These are secured loan to purchase vehicles or equipment.

Under this arrangement, specific vehicle or equipment used as security.

These mortgages are quite common for businesses because these vehicles earn their income and repay their loan while you receive the ownership as compared to renting it where you are just paying the ren.