Types of Small Business Loans that will leave you stunned!

If you are planning to start a new company or desire to expand the existing one but are unknown of the ways how to do it then, the simplest answer to this is to borrow small business loans for a trusted lender.

There are several types of loans in the market but the secret is not all of these loans are suitable to be borrowed as each of them has its own benefits. Still, confused? Continue to read on the blog below and know the top small business loans and which is best for you!

Top 5 small business loans in New York along with their advantages

1.      Business term loans

Traditionally, the business term loans are one of the best small business loans in New York that one could opt for. They have several advantages and long term repayment options.

Pros of business term loans

·         Can be used for any business type regardless of its size

·         Larger sum can be borrowed

·         Repayments are of quite a long phase

·         Good interest rates from 6.5% to 30%

·         Does not include any collateral

·         Mostly it is based on your business profit percentage, revenue, and business credit score

2.     SBA loans

SBA loans are not just for the sake of small businesses but they are also appropriate for the real estate, and large businesses. They can be used for various business purposes such as purchasing equipment, working capital, and refinancing.

Pros of SBA loans

·         SBA loan is the best loan option for business with strong credit and high profile

·         It ranges from $5,000 to $5 million in the United States

·         The lenders of SBA loans can be found online or several commercial banks

·         Lowest interest rates

3.     Merchant cash advances

A merchant cash advance is a type of loan which grants you a sum of loan in exchange for a decided percentage of your daily credit card’s transaction.  It can be sued for short-term requirements such as payroll, emergency funds, and working capital.

Pros of merchant cash advance

·         Fast approval of the loan

·         Grants good lump sum amount up to $250, 000

·         Suitable for business with short trading history and poor credit score

·         Repayment period- 8 to 10 months

4.     A business line of credit

A business line of credit is somewhat similar to a credit card but is only open for business with low ratings of business credit. One can be approved for borrowing this loan for a maximum sum of credit which can be drawn whenever you desire.

Pros of Business line of credit:

·         Liable for small businesses

·         Flexible funding type

·         Emergency funding is also available

·         After you have repaid the borrowed amount then you can also withdraw more money

·         Repayment term is usually from half to one year but mostly depending on your business credit score and revenue

5.     Equipment loans

Generally, equipment loans are loans which are used to purchase unused/new or used/second-hand equipment for businesses, this equipment may include proper tools and machines that are used to elevate the productivity and sales volume of the business and enhance customer service.

Pros of Equipment loans:

·         Easy application process

·         Suitable startups and small business loans

·         You can use this loan to the fullest even while you are paying off the loan amount in installment

·         The payment of loan terms are valid until the equipment are still in usable condition, typically it is around for 5 years.

Choosing the type of loan for your business whether small or big is a great deal as hence, taking risks in for the success of the businesses required a big heart.

So, now that you have got all the necessary information regarding the various small business loans along with their pros, you can be sure which one you should opt for the betterment of your business and finances.

However, if you still looking forward to professional consultation then you may visit the Greenlight Funding. They can help you find the best and the most suited form of small business loan in New York with suggestions and significances!

How to Avail Small Business Loan?

In order to keep on operating a small scale business, it must have proper financing that is basically in the type of business loan. One of the basic type of small business loans is debt financing. There are banks and other financial institutions like Green Light Funding offering varieties of commercial loans, SBA loans, home loans, etc.

 However, if you’re looking to start-up a business or want a loan for an ongoing business you can easily obtain a working capital loan for your company to increase productivity, sales volume, and enhance customer service. 

What Is Working Capital Loan?

It is basically a short term loan also known as a small business loan to cover the proper operation of an ongoing business right from daily needs and firm expenses such as purchase inventories, pay salaries, electric bills, pay rents, and purchase heavy equipment, etc. 

Apart from these it also includes invoice factoring, equipment loans, and business line of credit that has become quite popular among business owners as these are vital sources of capital available for the working capital. 

Now that you know about a working capital loan or debt financing you can easily get approved by following simple steps through the small business loan application procedure:

Let’s get started-

Step 1: State Clear Reason and Amount of the Business Loan-

For any small scale business ongoing you should clearly state the authentic reason and amount for the business loan. For the start-up, you should state the amount to be funded. Prepare a financial statement as part of the business plan for a more convenient reason.

Step 2: Know Your Local Score-

Before applying for a small business loan you should seek advice from experienced executives to know about your local SCORE. It is basically a non-profit volunteered group to help existing and start-up business owners with the loan application process easily.

Step 3: Evaluate Your Personal Credit Score-

It is mandatory to get a proper review of your business credit history if you have an existing business going on or less than three years old. It’s important to take some time out to get information on your personal credit history in order before applying for a small business loan.

Step 4: Schedule Your Appointment:

Prepare a perfect presentation of your business plan for a more convincing second look. Include an executive summary along with necessary spreadsheets, graphs, and any financial statements. Make sure to be concise and well organized. Establish your dream company by availing small business loans in New York by scheduling your appointment with Green Light Funding. WE offer a straight forward process for a faster and more convenient process to guide with every step of the way.

How to Gain More Profit with Commercial Property Loan?

When it comes to applying for a loan many people lack knowledge about it because there’s a huge difference between a standard residential loan and a commercial loan. Moreover, residential loans have become quite common nowadays because many homeowners are putting their personal property or outlet on rent to gain more profit. However, if you need to purchase any property to put it on use as business space and the outlet then you must seek commercial property loan immediately by Green Light Funding.

In this article, I have compiled some basic and relevant information to guide you about the commercial loan-

What Is An Exactly Commercial Property Loan?

Basically, it is real estate loan or a mortgage usually secured by a lien on commercial property. It is completely different from the residential loan as it is used for different business activities.  For example, a commercial bridge loan and different business activities in order to generate profit.

What Are The Features Or Characteristics Of Commercial Property Loan?

·         With the use of this loan, one can lease or purchase any existing or new property like the clinic, outlet space, and office space.

·         The loan can be used for the extension, improvement, and construction of bridge, office, clinic, and hotels.

·         It can be used for renovating and transferring.

·         You can experience hassle-free documentation process.

·         You are provided all the relevant expert technical and legal counseling to assist you to make the best decision before buying any property.

·         Banks like Green Light Funding offers commercial property loan.

The Candidates Eligible for This Specific Loan

·         Company Secretary

·         Lawyer

·         Architect

·         Engineer

·         Doctor

·         Consultant

·         Chartered Accountant, and

Other self-employed Individuals included are:

·         Trader

·         Contractor

·         Commission agent

What Is The Purpose Of Commercial Property Loan?

The basic purposes it serves are listed down below:

·         Outlets

·         Office space

However, it can be further categorized into two different categories:

·         Under construction and,

·         Ready to occupy space

The lenders like Green Light Funding will be contented to provide to the individuals this type of commercial property loan to start up their own business.

How Is Residential Loan Different From Commercial Property Loan?

There are numerous reasons to differentiate between these particular types of loans be that, the interest rate of the commercial property loan is a bit higher compared to a residential loan.

Other than this the processing fee, tenor, property valuation, builder category, etc are also very different.

To guide you with in-depth information, Green Light Funding is dedicated to helping you out throughout the stage with our team of loan specialists. We offer a wide a variety of consumer and commercial property loans in New York.

How to enlarge business with commercial real estate loans

While you stroll in the garden after your business hours and watching the big businesses nearby have you ever thought about enlarging your business? If yes, then here is the one-stop way that you can use to expand your business through commercial real estate financing loans.

To upgrade or enlarge your business you don’t require taking the pain of renovation cost and investment instead by borrowing the commercial real estate loans you can simplify the process at a glance and introduce as many factors as you want in your business. 

But before you move ahead to borrow loans for your commercial real estate it is wise if you know what type of loan does your property qualify to will your loan request be approved, how to apply for the loan and where to apply for the loan?

Therefore, here’s everything you need to know about the commercial real estate financing loans before making any decision:

Why opt for real estate loans for the growth of the business?

The simplest and the most suitable answer to this question is this loan allows small businesses to get capital access legally to expand the business.

The interest rates of the commercial real estate vary in each loan type, if you are opting for Small Business Administration 7(a) then the rate will be 5.25 - 9.25 % whereas some loans are low up to 3.9%. Note the interest rates of the SBA 504 are higher, but depending on your business eligibility and profitability you’ll be granted to apply for these loans.

Despite the low-interest rates the loan credit can run from 25,000 dollars to 1 million dollars.

What type of loan is your property eligible to?

To qualify for commercial real estate financing loan different lenders and agencies use several factors to make the decision and grant loans. Like for instance, The Greenlight Funding grant SBA commercial real estate financing loans in New York with the eligibility requirements that, the business must exist for at least 2 or more years and with a minimum score of above 650. 

Well, below we have listed 3 loan categories liable to be lent to small businesses:

·         If you have a small business then you’ll be eligible to borrow SBA loans, as the two SBA loans exist to make the financing affordable for real estate.

·         Another loan for small or medium business is the hard money real estate loans. These loans can be lent privately by lenders and investors. These loans are liable for lending smaller amounts with larger interests.

·         The commercial bridge loan is a type of short-term loan that can be made to refinance into a long-term loan. These loans are a better option to opt for as they can be quickly capitalized.

Where to apply for commercial real estate financing loans?

If you are planning to apply for loans then you may consider the Greenlight Funding in New York. They have a dedicated team of specialists who’ll guide you step-by-step what to do and what loan type you must opt for to prosper your commercial real estate business. Also, they are an ideal lending company for commercial real estate financing loans in New York. Simply you may visit our website anytime and get started.