Term Business Loan

Expanding Your Business? What Type of Loan is Right for You?


Acquiring funds for the expansion needs of your business can be difficult, especially if you are a small business with not much to show in terms of credit worthiness. If you have a bad credit score, banks would automatically turn you down, without even a second look. However, because of financing resources like AFN, obtaining financing for the expansion of your business has become simple and easy. If you’re wondering about what kind of loan you should go for, read on –

Term Loans – The first step in your expansion process involves acquiring capital for buying equipment or real estate. You can also look into renting real estate space for the growing needs of your business. Traditionally, a term loan comes with a set rate of interest, monthly installments, a time period and down payment. For buying equipment and leasing land, you would ideally require a minimum loan amount of $1,500,000. Usually, it could be more than that.

When you approach banks, you will have to go through a lot of paperwork for getting a loan of this kind and amount. However, the benefit of approaching resources like AFN is that the requirements are a lot less stringent and even with bad credit scores, you can get a loan. Your average monthly sales are taken as a basis for granting you a loan and documentation is relatively less, compared to traditional sources. You can get construction loans, real estate loans and property management loans with AFN. Equipment loans and equipment leasing loans are also available.

Lines of Credit – Line of credit is provided to you if you have enough collateral or credit. It fulfills immediate cash needs after and during expansion of your business. In fact, the entire US economy is practically driven by lines of credit. Again, traditional banks would not provide you lines of credit if your collateral is insufficient or if you do not have enough credit. At this time, AFN can be of immense help to you.

The Unsecured Line of Credit provided by AFN depends of the cash flows of your business. It provides full control over the release of funds and grants great flexibility to small scale expanding businesses. Your business would be treated as an individual case, different from other businesses and then, the terms would be set. There are no hidden charges or worries about having to pay late fees either. Less than adequate FICO scores are immaterial and immediate help can be provided.

Factoring Loans – Small businesses often find themselves in need of cash for various requirements like financing working capital and small term growth related expenses. The cash is provided after carefully assessing the state of the small business. It relies on the employment records and payroll, and gives a right to the lender on the business’ future receivables. Needless to say, if you have bad credit, it would be a tad difficult for you to get even this simple loan. Also, the paperwork would be immense if traditional routes are taken.

With AFN, you get Merchant Cash Advance. Merchant Cash Advance offers you a lump sum payment for your growth and expansion requirements, in exchange for a set percentage of your receipts in the future from Credit cards. For businesses that accept check or cash, a similar program is available as well.

Other types of loan that you can get are purchase order financing, trade finance, non-asset based lending and restaurant loans as well. If your business is a successful one and you fulfill the requirements of AFN, you might even get a loan within a week of application. Your other obligations do not matter and neither does your credit score.

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