image by Steve Buissinne from Pixabay

Are you looking for finance for running your business or required money to purchase new machinery or fund for new project. And you have used all your savings and used your connections to get funds or rather want to know the sources available in market. Here I jotted down some of the points which help you to know the available facility with bank and financial institution to support your business.

1. Overdraft facility:

Banks provide this facilty to customers so customer can pay bills or dues to the vendors even if therer is no cash balance or insufficiet balance in the account. This facility provided by bank with pre-aggrememtn fees and interest usally fees charge around $35 in USA per intance. As the fees is very high so this facility should not used regularly.

2. Business credit card

Bank or financial institutions provide this type of loan to business after considing the financials (income statement, balance sheet, personal net worth statement, bank statement). This facility comes with fees and interest like individual credit card. So if you pay back the mony to bank within stepulated time no interset will be charge or you can revolve by paying minimum due.

3. Merchant finance

if your business is to sell products and receive payment through credit card than you can consider this facility. Lender will study your charge volume for the specific period with business financial and can provide the loan amount and the repayment would be daily balance deduct from bank account or hold back the charges business made of sell the production on credit card.

4. Corporate card

This facility almost similar to business credit card only difference the business should stable and doing good in last 3 years. Feature almost similar to business credit card.

3. Line of credit

A fixed amount is set by lender which can be borrowed by business at any point of time. A fees is charge on providing this facility and interest is charge only to the outstanding money which was borrowed by the business. It has maturity usually 1 to 3 years and can be renewed. Business use this borrowing to feed working capital need.

4. Term loan

A lumsum amount is given to business with pre defined tenure, interest rate and monthly payback amount. Business required this type of loan to finance new machinery, building other capital expenditures. The tenure is the loan varies between 1 year to 20 years.

5. SBA Loan

This type of loan facility available to US company and loan is provided by US government to improve economy. As per SBA website loan is provided to companies who do not have qualify for financing.

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