| There are many people who do not have ready cash | | | | companies such as manufactures, janitorial services, |
| in hand. But they want to make it big in the financial | | | | staffing agencies, consultants which provide |
| market. For them there are different financing | | | | businesses to other businesses houses can also opt |
| agencies who offer a wide range of no cost loan | | | | for this no cost loan program. These programs are |
| options. These financing agencies may be corporate | | | | highly flexible. |
| banks, commercial banks, mutual banks and mortgage | | | | Asset Based Loans: These loans are secured by real |
| companies. | | | | estate and are short to mid term (1-5 years). Inventory, |
| Each of these no cost loan options has their distinct | | | | stocks, equipment, and other assets can also be used |
| specialties. One aspect of one loan method may or | | | | to secure such loans. The rates of this type of loans |
| may not be beneficial for your business. Some of | | | | differ according the circumstances. Companies mostly |
| these no cost loan programs are more industry | | | | opt for this loan when bank rejects a former loan |
| oriented. | | | | request due to less creditable scores of the |
| This means your business may not have the criteria | | | | companies as they already have one or other |
| required for the no cost loan you are applying for. This | | | | financing currently in place. |
| is where we should take the professional advice. They | | | | Bridge & Mezzanine Loans: These are short term |
| determine the type of no cost loan which will be most | | | | loans. There is always a time gap between the date |
| appropriate for your work. | | | | of starting a project and getting the traditional financing. |
| They also work towards achieving the goal of | | | | This time gap is filled up with these types of no cost |
| acquiring the loan. They have a very wide network of | | | | loans. These loans are secured via stock within the |
| lending institutions. Many of them have very flexible | | | | company. |
| criteria for the borrowers. In other words, even if you | | | | Hard Money Loans: These types of loan are required |
| have some problems with your last loan still you can | | | | by the companies involved in construction projects but |
| get a no cost loan after working out a solution with | | | | are unable to secure the no cost loan amount needed |
| them. | | | | with their asset base. These are short term no cost |
| Different type of financing companies offers different | | | | loans and have a medium to high interest rate. It often |
| type of loans. For example: Acquisition & Equity | | | | requires personal guarantees. |
| financing: When a company wants to purchase | | | | Personal loans: If you have good credit and can show |
| another company or desire for a merger then | | | | ability to repay a loan you may qualify for a personal |
| acquisition loan can be obtained. | | | | loan or signature loan, these types of loans may be |
| This no cost loan can be partial that is the left over | | | | more expensive because of the higher risk of default. |
| money required to complete the transaction. The | | | | The advantage of this type of loan is most banks can |
| merger or acquisition can also be fully financed. This no | | | | process the paperwork in one day so if you are in |
| cost loan type requires creative loan structures which | | | | need of cash fast this may be your best option. |
| may be required to fulfill the collateral needed in order | | | | PO & Inventory Financing: These types of loans are |
| to acquire the loan and it totally depends on individual | | | | very expensive. These are obtained mostly by |
| situations. | | | | companies who already have a factoring program |
| Companies going for venture capital or developers | | | | running or have built up a secure connection with a |
| opting for gap funding go for Equity financing. | | | | finance company. These are particularly best for |
| Whenever there is a void gap between existing debt | | | | companies which have a very high profit margin. The |
| and required debt which allows the company to obtain | | | | interest rates are often very high. |
| 100% financing for a project Equity financing is used to | | | | SBA Loans: These loans are backed up by the |
| fill it up. | | | | government for minority, women, and startup |
| Accounts Receivable - Factoring: Some medical | | | | programs. This loan is also appropriate for small |
| related companies such as hospitals, urgent care | | | | businesses that are running for at least two years. |
| facilities, long term care facilities etc. which require | | | | These are the different types of loans an individual or |
| consistent cash flow can aptly go for this type of | | | | a business can get to fulfill their project needs. |
| finance programs. Some other commercial related | | | | |