Which Loan For Me?

There are many people who do not have ready cashcompanies such as manufactures, janitorial services,
in hand. But they want to make it big in the financialstaffing agencies, consultants which provide
market. For them there are different financingbusinesses to other businesses houses can also opt
agencies who offer a wide range of no cost loanfor this no cost loan program. These programs are
options. These financing agencies may be corporatehighly flexible.
banks, commercial banks, mutual banks and mortgageAsset 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 distinctstocks, equipment, and other assets can also be used
specialties. One aspect of one loan method may orto secure such loans. The rates of this type of loans
may not be beneficial for your business. Some ofdiffer according the circumstances. Companies mostly
these no cost loan programs are more industryopt 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 criteriacompanies as they already have one or other
required for the no cost loan you are applying for. Thisfinancing currently in place.
is where we should take the professional advice. TheyBridge & Mezzanine Loans: These are short term
determine the type of no cost loan which will be mostloans. 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 ofThis time gap is filled up with these types of no cost
acquiring the loan. They have a very wide network ofloans. These loans are secured via stock within the
lending institutions. Many of them have very flexiblecompany.
criteria for the borrowers. In other words, even if youHard Money Loans: These types of loan are required
have some problems with your last loan still you canby the companies involved in construction projects but
get a no cost loan after working out a solution withare 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 differentloans and have a medium to high interest rate. It often
type of loans. For example: Acquisition & Equityrequires personal guarantees.
financing: When a company wants to purchasePersonal loans: If you have good credit and can show
another company or desire for a merger thenability 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 overmore expensive because of the higher risk of default.
money required to complete the transaction. TheThe advantage of this type of loan is most banks can
merger or acquisition can also be fully financed. This noprocess the paperwork in one day so if you are in
cost loan type requires creative loan structures whichneed of cash fast this may be your best option.
may be required to fulfill the collateral needed in orderPO & Inventory Financing: These types of loans are
to acquire the loan and it totally depends on individualvery expensive. These are obtained mostly by
situations.companies who already have a factoring program
Companies going for venture capital or developersrunning 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 debtcompanies which have a very high profit margin. The
and required debt which allows the company to obtaininterest rates are often very high.
100% financing for a project Equity financing is used toSBA Loans: These loans are backed up by the
fill it up.government for minority, women, and startup
Accounts Receivable - Factoring: Some medicalprograms. This loan is also appropriate for small
related companies such as hospitals, urgent carebusinesses that are running for at least two years.
facilities, long term care facilities etc. which requireThese are the different types of loans an individual or
consistent cash flow can aptly go for this type ofa business can get to fulfill their project needs.
finance programs. Some other commercial related