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Article #453: Which Loan For Me?

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






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