Having access to funds at the right time is critical for small companies. Sometimes even with meticulous planning, small business owners and entrepreneurs find it hard to get a loan. The good news is there are financial services that work specifically with these businesses in the US and Canada, offering advances up to $75,000. Options like prêt petite entreprise Accord Financial are designed to offer assistance at the right time, without waiting for months for a traditional advance or loan. Small business loans are typically repaid over a period of 18 months or less.
Below is an overview of small business loans and when your company should consider the choice, with other factors that eventually matter.
Reasons to choose small business loans
Sometimes, money is required immediately, and there is no time to go for a secured loan, through the conventional financing process. There are varied situations where small business loans can come in handy – you may need money to buy extra inventory, there are gaps in cash flow, there is a need to take a large order, sudden repairs and equipment purchases cannot be avoided, or when working capital issues are evident. The purpose of small business loans is to keep a company going, especially when its monetary requirements are minimal and temporary.
Terms, conditions and other aspects
First and foremost, note that small business loans are unsecured, so the interest rate is higher, as the lender is taking a massive risk. The loan, if approved, can be deposited in the account of the concerned company in just one to two business days. The amount borrowed is typically between $5,000 and $75,000, but how much the lender is willing to approve is dependent on certain factors, including credit evaluation. Repayments are done in simple flexible instalments, paid weekly, directly through a debit in the account. The terms & conditions of small business loans may vary from one financial service to another, so do your homework. Prepayment is allowed, but may be subject to certain terms.
Which businesses qualify for these loans?
Businesses in the US and Canada can consider small business loans or business financing richmond va, provided their annual sales is $100,000 or more. The company must have been in business for a period of 2 years at the least, and the credit profile should be better or at least satisfactory.
For growing businesses, getting a quick advance doesn’t have to be hard.
