Types of Small Business Loans

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Types of Small Business Loans
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• Small business loans are loans that are provided
  for small businesses for different reasons.
  Generally they will have less restrictive
  requirements so that the small business can
  secure the funds they need to help meet expenses,
  buy new equipment, buy inventory at discount
  prices, and more. They are available from a
  number of alternative and traditional lenders.
  There are also many different types of small
  business loans that a small business can apply
  for. 

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• Small business line of credit These types of
  small business loans allow the business to access
  funds from the lender as they are needed, with a
  limit on how much is accessible. This line of
  credit can be useful for managing any unexpected
  expenses or the cash flow of the company.
  Generally there will be a fee for setting up a
  line of credit but there is no interest charged
  until the funds are drawn from. The interest is
  usually paid monthly and over the years the
  principal that is drawn on the credit is
  amortized. Most lines of credit will require that
  you renew them each year, which may cost an
  additional fee. If the business does not renew
  the line of credit it will be need to be paid in
  full at the renewal time. 

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• Equipment loans These small business loans are
  used to purchase equipment and will usually
  require a down payment of twenty percent of the
  purchase price. The loan is then secured by the
  equipment. Typically the company will paid the
  interest monthly with the principal amortized
  over a two-four year period. The amount of the
  loans generally ranges from five thousand to five
  hundred thousand dollars with the interest rate
  at a variable or fixed rate. 

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• Working capital loans This is considered a debt
  borrowing vehicle and is used by the small
  business to finance its daily operations. These
  small business loans can be use to manage
  fluctuations in expenses and revenue due to a
  variety of circumstances in their business. Some
  are unsecured but if the small business has
  little or no credit history they will usually
  have to provide a personal guarantee or have
  collateral to put up for the loan. The loan can
  be from thirty days to one year and vary from
  five thousand to one hundred thousand dollars. 

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• Small business term loans These short term
  loans Central Coast are usually for a set dollar
  amount and used for expansion, capital
  expenditures, or business operations. The
  principal is generally repayable within six
  months to three years with the interest paid
  monthly. The principal can have a balloon payment
  at the end of amortized over the term of the
  loan. It can also be unsecured or secured and
  have a fixed or variable interest rate. 

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• Small business credit cards Although some
  business owners are wary of using credit cards
  but they can be a way of having
  short-term invoice finance Sydney. The interest
  rates will vary and so will the amount available.
  Many will require that the principal owner of the
  business be co-liable with the business.

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• business loans Central Coast invoice finance
  Sydney
• Magnolia Finance
• Suite 3, Level 27, Governor Macquarie Tower
• 1 Farrer Place
• Sydney NSW 2000
• http//www.magnoliafinance.com.au