Business Loan? You might think that you do not need it, or the word loan stresses you enough that you would not apply for one. However, you are not sure for how long your business stability will last. There will come times when you will need more funds to create a business project, for new product development, or expand your business.
In this fast-paced industry and changing times, you must be quick to adapt. But being able to go with the flow would be hard if you do not have enough money or extra working capital. You would not want to sacrifice your emergency fund, right?
A successful business is not a product of a great business plan or hard work alone. Every business now to be able to start and continue operating needs one thing – funds. It’s hard to wait for funds to come which is why Business Loan is there to help you work fast with your business objectives as soon as possible.
What is a Business Loan?
A business loan is a credit agreement between an entrepreneur and a bank or private lender. It is specifically designed for business purposes. Like all loans, it involves creating a debt that is repaid with additional interest.
Businesses need capital to fund their operations or simply to start a business and make a profit. Banks and lenders are willing to lend money as long as you pay it back with interest on the agreed schedule.
There are different types of business loans such as bank loans, mezzanine finance, asset finance, invoice finance, microcredit, cash advance, and cash flow loans.
Benefits of applying for a Business Loan
Still doubtful about applying for Business Loan? Here are the benefits that it can provide you:
1. It will increase your working capital
A business loan will help you increase your working capital. This can be very helpful especially when you are short on cash. You can maintain your operating cash flow and cover any short-term operational needs and unexpected expenses. You can still operate without having to sacrifice your emergency fund.
2. It will be convenient for you to access funds
As you grow your business you will need to have easy access to funds. Having one would not delay your plans or projects for your brand. You might think that one way to have funds is to wait for your business profits to grow before reinvesting. Or you might consider finding investors? However, both options take a long to process, and investors hardly invest in start-ups. These worries about funding can be gone by getting a business loan is more practical than waiting.
3. Pay reasonable interest rates
Business Loans have lower interest rates than personal loans. Borrowing it from a lending company will require you no collateral and can be granted in as little as a day or two. It is more considerate and advantageous for you to borrow from a lending company than from personal finance lenders that charge interest rates.
4. There’s no collateral required for you
You will not have to pledge collateral as long as you meet the eligibility criteria. You must also be able to present a profitable business proposition. As for large companies, you will be assessed on your earnings, cash flow, and stability to ensure that you can repay the loan within the agreed time frame.
5. You will have tax benefits
The interest that you will pay on a business loan is usually tax deductible. You must check interest rate limits eligibility before applying for it. Likewise, you should keep a record of all interest payments your business makes on business loans.
6. Quick disbursement of loan
You probably think that applying for a loan takes a long process. On contrary, business loans only require minimal documentation and is given to you quickly. It disburses fast so you would not have to pause your business operations while waiting for funds.
7. It can improve your business credit score
Applying for a business loan can improve your business’s creditworthiness. But of course, you will need to make sure your payments are on time and you repay the loan within the deadline to see your credit score improve. In the future, this can help you get more financing with lower interest rates on business loans.
8. Gives you authority over the usage of the money you borrowed
A business loan company does not interfere with the way you run your business. They allow you to borrow money without selling a percentage of your business ownership to investors in exchange for money. They don’t specify how you should use your business loan; they only worry about a timely refund. You won’t need to work together with others or consider other people’s opinions. Therefore, a business loan is the best option to maintain full control over how you spend your money.
9. No need to share business profits
When you bring investors in, they expect a return on your company’s profits. This is not the case for business loans. Business finance helps your business grow and accelerate growth, leading to more profits and long-term success. Once this is achieved, there is no need to share the winnings with anyone. We will return the same amount and interest to the lender no matter how big or small the profit from the project is.
10. You can choose from multiple business loan option
Most lenders have different types of business loan programs to meet the different needs of businesses. They can provide you with term loans, machine loans, and more.
Vidalia Business Loan
Vidalia Lending Corp. helps business owners just like you—startups or established organizations—to finance important purchases or to get money out of a deal.
Vidalia loans are for all types of businesses — whether you are buying a new van for your delivery business, leasing office space for an expanding tech company, purchasing raw materials for a manufacturing firm, or buying the building where your storefront is located.
We tailor each loan to your individual needs, so you can rest easy knowing that you are getting the best financing available. Grow your business by applying here.