Business owners need loans for various reasons. Startup business owners may ask for a loan so they can begin the process of building a company. Businesses that are already established may run into a cash flow problem here and there, want to expand, desire a different location, etc., so they will consider taking out a loan. When it comes to businesses, there are any number of funding types that might be considered, including the following:
- Commercial real estate loans
- Equipment loans
- Business line of credit
- Merchant cash advances
- Invoice financing or invoice factoring
- SBA loans and more
Another type of loan that is frequently considered by business owners is a term loan. While each of the loans just mentioned has pros and cons, term loans can be significantly beneficial, depending on your circumstances as a business owner. Here, we will look at a number of reasons why you might want to consider a term loan as a business owner.
Shareholder Equity Is Preserved
Your company’s shareholder equity remains intact, so it is not affected due to the fact that term loans are a type of debt financing. What’s more, unlike equity financing, no degree of operations control will have to be relinquished by business owners.
Ordinarily, within a day or two, your short-term loan could be approved. Truth be told, there isn’t a particularly lengthy time for approval even on long-term loans.
Free up Your Cash Flow!
When a term loan is taken out by a business, for use in other areas, cash flow is freed up. For example, if for the purpose of funding a round of hiring, a company took out a term loan, the employee training time costs will be covered. So, the bottom line will be contributed to by the new employees starting immediately.
Flexibility is Increased
A great deal of flexibility is offered by a term loan. From the principal and interest rate to the duration, there’s a wide scope for a considerable amount of negotiation. You may enjoy far more flexibility with a term loan, the better the credit score is for your business. This line of thinking applies to any number of loans, as well.
Interest Rates Are Lower
Compared to loans with shorter terms, lower interest rates are usually offered for term loans, in case they are available for a longer duration. The interest rates are, moreover, fixed. During the lifetime of the loan, they do not vary.
VIP Capital Funding – We Help With Small Business Loans
We are VIP Capital Funding, and we want to help you get the loan you need for your small business. Gain a competitive advantage courtesy of our unrivaled business approach and working capital. With as little paperwork as possible, we can assist in the facilitation of the cash your business needs now.
Need a small business loan? Don’t apply anywhere else until you check with us.
For no upfront fees, a tax deductible interest rate, early prepayment discounts, and more, speak to one of our representatives at 800-735-7754 or email us at email@example.com.
You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.