How A Large Business Loan Can Be Funded In 24 Hours
There are a lot of things to consider when applying for a business loan. You need to make the necessary enquiries in order for you to choose the best options to suit your needs. Assuming that you already have, you’ll need to consider some of these basic choices and initial decisions when it comes to business loans:
Start with considering whether you prefer a term loan or a line of credit.
A term loan is a loan scheduled to be repaid on an instalment basis for a certain period of time. It may be for a short-term loan (a year or less), or a long-term loan (a year to as much as 30 years or more).
Some of the major reasons for choosing a term loan;
- Your company needs to purchase additional equipment to meet the need of your growing demand
- As additional working capital
- A renovation of a new warehouse you just rented out for the expansion of your business
A line of credit is a fixed amount of money offered by the financial institution and can be easily accessed by the business any time they need it. Think of it as money in the bank that you can easily take out and return anytime. And the Interest starts once the money has been taken out.
A line of credit is considered as a short-term loan that can be ideally used for the following purposes:
- When the company is looking into purchasing a large amount of stock to take advantage of a market opportunity
- Another is for the purpose of an investment opportunity that is only made available for a short period of time
After choosing either of the two options, you’ll also need to know whether or not you are qualified for a secured loan or an unsecured loan. With this, you’ll know what documents you’ll have to prepare.
A secured loan, it is that which requires collateral. This is normally the case for people with bad credit as financial institutions will need security for the loan they’ve provided for you. A secured loan is also for larger loan amounts.
The unsecured loan, on the other hand, does not require any collateral as the turnover of the business is the main consideration when the funder is assessing the loan, they normally has a higher interest rate and a shorter term.
As for choosing the right lender for you, the traditional lending institutions might not be the best option if you are looking into applying for a loan and expecting funds to be released within 24 hours. Main stream banks have a rigid approval process and full financial information is required, their approval time can be weeks or months before the funds are released.
But then again, if you are looking for a loan that provides 24-hour funding and your reason for applying for a loan is urgent. In this case, it would be advisable for you to consider private business loans. Private business loans are loans issued by a non-banking lender such as Homesec Business Finance. If you are looking for something fast and convenient, then this may be the right direction for you.
Over the years, Private lending institutions like Homesec have grown through advancements in technology in the way they evaluate businesses. That makes for a faster release of the loan and more convenient for borrowers. With this, it allows them to be more flexible and are a lot less rigid when it comes to the requirements needed as compared to traditional lenders, such as banks.