subject: Business Loans – Raising your finances [print this page] When you have your own business, you make the rules, you work for yourself, you take home the profits and you get to do what you want. Business and finances are closely intertwined. Finances are basic to business development. Any new scheme or business idea requires money to grow. Business loans are the most popular way of raising finances for business.
These loans are offered as secured and unsecured business loans. A secured business loan can serve as the simplest, most efficient way of finding finances for your business plan. They come with many benefits which include lower monthly payments, facility to borrow more and spreading the repayment over a longer period of time. As long as you provide an active collateral, you're set to get a secured business loan.
Unsecured ones also offer similar advantages as its secured counterpart minus offering any collateral for the loan claim. However, they might entail a higher rate of interest. The benefits of flexibility, retention of ownership, budgeting is same as a secured loan.
Credit history is the criterion that helps the lender to decide whether you are a credit risk or not with respect to them. A credit history that is flooded with late payments, defaults or bankruptcies won't leave a positive impact on the loan lender. If your credit history is poor, an unsecured business loan application with a letter explaining your changed circumstance would leave a positive impact.
For this financial plan, be prepared with business financial statements, business plan with financial projection, personal tax returns. Emphasize on your financial performance and get an accountant to help you with it. Be clear about why you need this money and be prepared to explain that to the loan lender. The loan amount on business loans can range from 50,000 to 200,000 and above depending on your status.
In order to successfully take cash you must be a good borrower. This will provide you with the cooperation when you require it. Understanding the requirements and executing them is the best way to developing good business relationships.
Business Loans Raising your finances
By: James Addevsen
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