Grow your business with confidence!
OFFERINGS
Business Loans or Revolving Lines Credit? Which one is the best choice for your business?
- BUSINESS LOANS are just loans that are dressed up with the word "Business" in front of them. However, since most businesses fail within the first year, most business loans are denied if a business owner doesn't have perfect credit, has low utilization on other credit, lack of collateral to satisfy loan underwriters, not being in business long enough, had a few slow months, etc. When a business is not properly capitalized prior to launching, the likelihood of weathering the storm during a slow month or two could be detrimental to its future. Most loan terms are NOT favorable to business owners either, because history has shown that those types of loans have always been considered to be high risk - and with higher interest rates to accommodate the increased risk factor. Higher interest rates = Larger monthly payments! In general, Business Loans have to be paid back over a specific period of time, with principal and interest, and if you miss a payment, well, we all know what happens after that. If you're fortunate enough to weather the slow months and get your business loan paid off, you will still be required to apply again if you wish to borrow more money; it's a total hassle!
- REVOLVING LINES OF CREDIT are similar to Business Loans, but usually with much easier terms. Revolving Lines of Credit have been known as THE GIFT THAT KEEPS ON GIVING, because you never have to re-apply to continue using it. During a slow time in business, you can pay a minimum "Interest Only" payment to keep rolling along, and still keep your Revolving Line of Credit open for continued use.