You’ve worked incredibly hard putting together a persuasive, well-researched business plan.
You’ve studied the competition, developed product prototypes, and you’ve even started to build your brand’s website.
The only thing standing in your way?
The fact that you don’t currently have a way to finance the business on your own. You know you need to apply for a business loan, but you’re not sure which one is right for you.
Read on to learn about the different types of business loans you can apply for to help finance your dream.
1. Asset-Based Loans
First up on our list of business funding options are asset-based loans.
These loans are especially helpful for companies that may not have an extensive credit history or business owners without a strong credit score. Instead, the amount and terms of your loan are based on the value of company assets.
Often, these are tangible assets like equipment and inventory. In most cases, you’ll be able to borrow up to about 50% of the total value of your tangible assets.
Because these assets serve as collateral, the lender is much more likely to approve an asset-based loan for those without perfect credit.
2. An Accounts Receivable Line of Credit
We know that it can often be a major pain to chase down unpaid invoices or simply wait for the money to come in. (After all, about one in ten invoices are paid late.)
An accounts receivable line of credit lets you borrow against those outstanding invoices — so you can access the money you know you’ll have coming in immediately.
Additionally, you’ll be able to keep ownership of these invoices. Your customers will pay down the loan whenever they make an invoice payment, and you’ll borrow from a line of credit.
Look for accounts receivable lines of credit that keep pace with your overall business growth to help you avoid overborrowing.
3. Flexible Term Loans
Another one of the most popular business loans is called a flexible term loan.
Here, you’ll pay a fixed amount every month and even have the option to pay off your loan early. Flexible term loans are a smart option for those who need to pay for new business equipment, employees, marketing, and even office space.
You’ll be able to set the specific repayment period that meets your needs, whether you’d like to pay your loan off in one year or in 48 months.
The Dealstruck Difference
Now that you know more about the different kinds of business loans, let’s discuss why you should work with Dealstruck for your financing needs.
We’re not just a lender, we see ourselves as an invested partner in the profitability of your company. We work to match your business with the loan that’s the most appropriate for your current financial situation, the industry you work within, and your long and short-term financial goals.
We’ll create a customized lending package with options that will put you on the pathway to success.
Click here to start the application process for your business loan today.