Business Loans

Running a successful business can be a fulfilling experience, whether it is profitable or still in the early stages. But a lot goes into owning and running a business successfully, especially in terms of discipline, effort, time, and obviously money. Be it a small business or a major corporation, capita is an essential element of growth and success. And that is why many companies tend to look for business loans to meet the financing needs of their organization.

Loans are pretty common. Many people are aware of loan types such as personal loans, instant loans, or same-day loans. Business loans are quite similar to those other loans, but they have higher limits compared to personal loans. But while they are pretty common, there is more to business loans than just higher borrowing limits.

What is a business loan?

To put it simply, a business loan is a loan purposefully designed for business use, typically to finance a range of expenses and operations in a business. It usually involves an agreement between the owner(s) of the business and the lender – usually a bank, where money is disbursed for future payment of the principal plus interest.

Just like personal loans, business loans can also be secured or unsecured. As you may have guessed, a secured business loan means that the business offers an asset as collateral for the loan, while unsecured business loans do not need security.

When a business needs capital or any form of financing, it can look for a bank or private lender for a business loan.

The loan is usually based on predetermined terms and conditions including the time of repayment, interest rate, the structure of the loan, and more.

For a newbie, these intricacies can be overwhelming, particularly given the wide range of circumstances, businesses, and lenders. With that in mind, it is always advisable to do due diligence before committing to a lender or beginning an application process.

When seeking out a loan, it is important to start by ascertaining the specific purpose of the financial help. The clearer the answer the better, but if you are not clear on the exact purpose of the business loan, you may still have a lot of homework before speaking to a bank.

As business needs evolve, so are the types of business loans and thus it is also important to research the type of business loan that will suit a specific business need in your organization.

What are the advantages of business loans?

When you own a business, you will often live by the adage spend money to make money. The growth of your business depends on the investment you put in, including investing in top talents, advanced equipment, and research and development.

With a business loan, you can achieve all that and many more. Business loans have numerous benefits, including:

Can be unsecured

Most business loans are offered without any collateral, as long as you and your business meet the eligibility standards. And since they are unsecured, you do not risk losing your business or personal asset in the event that you fail to honor the loan agreement.

Also since most loans do not require collateral they are a pretty attractive option for most businesses, especially small to medium enterprises that may not own a lot of assets.

Minimal documentation

Business loans don’t require a lot of paperwork and documentation to obtain them. As a matter of fact, you can get this loan without a guarantor, security, or collateral to meet eligibility. Some banks and credit unions also offer doorstep services, so you don’t even have to go through the trouble physically visiting the bank offices.

Competitive rates

Due to the growing competition among credit unions, banks, and SACCOS, the interest rates charged on business loans are competitive and reasonable, allowing many businesses to take out loans without having to worry about exorbitant costs.

While interest rates charged will vary depending on the lender, you should expect anything within the 11 percent and 24 percent bracket.

Lenders don’t influence how the loan is spent

Bank and other lenders of business loans don’t interfere with how the loan is spent or the business is run, unlike investors. Speaking of investors, sourcing for funds from them means you have to accommodate them, which also means they will have a huge say in how the business spends the money.

But getting business loans, banks and credit unions don’t really care how the money is used, provided you will pay it back in time.

What happens to the money is entirely your business, if you will excuse the pun. In other words, if you want to have full control of your business, you are better off taking a business loan.

Convenience and ease of access

Today it is very easy to identify a bank and open talks about the possibility of getting a business loan from them. This ease of access and convenient communication line is something that appeals to many businesses because most owners have very limited time.

Why Choose Us For Business Loans?

Whether you are starting the business or running a fully-fledged organization, Micro Enterprise Works is here to help you by providing you with the right financing solution to meet your business needs. In addition to sourcing great interest rates and free, unlimited support, we will also provide you with excellent, unrivaled customer service. In addition to that, here are some benefits of working with us:

Trust of many lenders

We take our time to get to understand our clients and their needs as well as dig deeper to know what lenders are suitable for them. Through carefully matching the attitudes, credit appetites, and borrowing needs of each lender with the credit profiles and funding goals of borrowers, we structure financial deals that benefit both parties.

This in return leads to low default rates as well as high trust levels with lenders, thus resulting in even more trustworthy relationships.

Conclusion

If you own a business, taking a loan gives you a better shot at growing and having control of your business. Although many owners think attracting investors is more beneficial than getting a business loan, think about the flexibility and independence of having to determine how the business spends money.