| In the literal sense, a business loan is a loan offered for | | | | establishments. |
| business purposes. The field of business loans is | | | | Beginners' Loans: Creditors grant this type of loan to |
| growing day by day. With the diverse types of | | | | start-up businesses. |
| businesses and their needs, equally varied business | | | | Franchisee loans: Creditors offer this type of loan for |
| loans have emerged. | | | | franchisees of well-known and established businesses. |
| Categories Of Business Loans | | | | Acquisition Loans: This type of loan helps business |
| SBA Loans: Small Business Administration or SBA | | | | houses to acquire other businesses. |
| loans are meant for small businesses. SBA doesn't | | | | Equipment Loans: This type of loan helps businesses |
| finance the small businesses directly. The SBA | | | | to purchase equipment, which is pledged against the |
| co-ordinates with CDCs and private-sector lenders, | | | | loan. |
| such as banks and financial institutions, to finance small | | | | Equipment Lease Back: In this type of equipment |
| businesses. | | | | financing, the business sells its existing equipment for |
| Secured Loans: Creditors issue secured loans against | | | | cash and then leases the equipment from the lender. |
| a worthy asset of the debtor as a security. Applicants | | | | Commercial Realty Loans: Creditors issue this type of |
| require secured loans for working capital when the | | | | loan for commercial properties. The term of the loan |
| applicant wants to convert any of the company's | | | | may be fixed or variable. |
| assets into working capital. | | | | Construction Loans: This type of loan is meant for |
| Unsecured Loans: Creditors offer unsecured loans for | | | | commercial construction purposes. |
| working capital requirements on the basis of the credit | | | | Realty Loans: Creditors offer this type of Loan for |
| worthiness of the debtor. No asset is pledged as a | | | | investors, who invest in real estate. |
| security on the business loan. | | | | Hard Loans: This type of loan includes many |
| Lines of Credit: This is a pre-approved loan for a | | | | miscellaneous business needs for which the financing is |
| business based upon the company's financial records, | | | | not readily available in the market. Very few institutions |
| such as existing inventory, accounts receivable (A/R), | | | | extend it and those that do so, extend it sparingly. |
| and purchase orders (PO). Lines of credit up to | | | | Business dependant loans: Creditors extend this type |
| $200,000 may be granted without any collateral | | | | of loan in the name of the business house based upon |
| depending upon the credit worthiness of the business. | | | | its ability to justify the loan amount and its ability to pay |
| Accounts Receivable Loans: In this type of loan, | | | | it back. |
| accounts receivable are pledged for availing loans in | | | | Loan processing Software: To speed up the loan |
| order to obtain short-term working capital. The | | | | documentation, many known market players offer |
| creditors process these loans quickly and make them | | | | cost-effective and efficient loan software solutions. |
| available at low interest rates. | | | | This software is for those institutions that extend |
| Cash Advance Against Merchant Account: Cash | | | | mortgages, loans, real estate contracts and other |
| advances up to $50,000 can be granted against the | | | | installment notes. This software facilitates all the steps |
| monthly credit receipts of the merchant. | | | | of loan processing such as loan origination, processing, |
| Professional Loans: Creditors offer this type of loan | | | | underwriting, documenting, and the delivering of the |
| for professionals, such as doctors, lawyers, and | | | | loans. This software functions according to industry |
| chartered accountants seeking to start their own | | | | standards and regulatory norms. |