There are so many things that a business owner has on their mind all the time. Starting, owning and running a business is a lot of work and not for the faint of heart. One of the many things that business owners have to think about is finances. If you don’t have the money that you need to effectively grow your business, you may need a loan.
Before you apply for a business loan there are a few things you need to know first. Some things that we will cover in this article are what type of business loan you might need, what the requirements for a business loan application are, and who to talk to about all of your Las Vegas business loans.
Types of Commercial Business Loans
The type of loan that you need will depend at least somewhat on your assets. For example, if you are a relatively new business without adequate assets to secure a loan otherwise, you could consider an unsecured business loan. A secured loan does require collateral, but an unsecured loan does not. Once you have nailed down a secure or unsecured loan, there are a few main categories of loans.
- Term loans
- Line of credit
- Property finance
Going into a little more detail on these types of loans we learn that a term loan has a set payment schedule and a fixed interest rate. This is the most well-known type of loan. A line of credit is also a type of loan. There is an agreed upon amount that a business can borrow at any given time. Property finance is also an option. This is the most specific of the three types because it is money that can only be used for business-related property purchases.
Business Loan Requirements
Not just anyone can borrow money. In order to qualify for a business loan there are certain requirements that you should know about. Loan approval is never guaranteed, but there are indicators that let you know if you are a more eligible borrower. You will be evaluated based on the following criteria:
- Business credit score
- Cash flow history or business revenue
- Collateral-for secured loans
- Financial statements
- Business plan
Using Borrowed Money
Depending on the loan you get, there may be restrictions as far as what the money can be spent on. Keep this in mind if there is something specific that you need to purchase with the borrowed money. If you do not want to spend the time researching this yourself, Your Finance Partners is a great resource.
Where to go for a Las Vegas Business Loan
Sometimes it is good to have options and other times having too many choices can increase stress and anxiety. Your Finance Partners is designed to help businesses make good financial decisions and connect them to relevant resources. Owning and running a business is a huge undertaking with a lot of plates to keep spinning. Partnering with someone like that can be in the best interest of your business if you are looking to grow. Your Finance Partners can point you in the direction of the best commercial lending for your business. Contact them today.