Monday Jul 15, 2024

How to Get a Business Loan to Improve Your Existing Business

Does your current business need a facelift? You may need to purchase new, updated equipment, do remodeling, add an addition, purchasing new fixtures for your business. Maybe you wish to start offering new services that will require you to hire additional employees. Perhaps you need to retrain your current staff to offer new services. The time has come for you to take out a business loan to cover these expenses, but where do you turn now?

Online Business Loans

The answer may be only a mouse click away. There are quality, reputable lenders who do business exclusively online who are willing to invest in your business by loaning you money to help improve it. These lenders have established websites to make the application process possible in a convenient, hassle free environment.

To apply for your business funding, you will visit the lender’s website. You will be able to fill out a secure online application on the lender’s website that will ask for general information about your business, including revenue generated, projected sales, etc.

Securing Your Business Loan

You will most likely be asked to secure your business loan with something of value, such as your own home, real estate, business property, etc. If you were to forfeit on the loan for any reason, the lender can foreclose upon the security just as they could with any other type of loan. That means that regardless of the success (or lack of) that your business experiences, you will still be responsible for repaying your business loan.

Flexible Repayment Options

You can borrow any amount that you need for business purposes. Remember, you have different options for repayment. Some lenders may offer you regular monthly payments that range from one year to twenty years or longer.

When shopping for a business loan with monthly repayments, look for one that offers a fixed rate. That means that you will always pay the same amount of interest, regardless of the fluctuations of market rates that accompany the variable rate business loan. This is especially important if your business loan is for the long term (ten years or longer). This can save you tons of money over the life of the loan.

Other payment options that you may have offered to you at the time you take out your business loan may be a payment of interest only for so many years (example: ten years of interest only payments each month) followed by a final year of a balloon payment that will be the entire principle of the loan. That means that if you borrow $10,000 you would pay interest only on the money for ten years, with the final balloon payment of $10,000 due at the end of the term of the loan.

This option works well for businesses that will need more time to realize profit on their initial investment of $10,000 – which means that the interest only option doesn’t take away from the profit during the loan’s term. The balloon payment of the entire principle, however, is something that you should consider being able to afford at the end of the term.


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