Business FAQs
What is Secured Business Loans: Secured business loan means that the entrepreneur keeps something as collateral against the loan amount taken. Collateral can be anything from raw material to finished products, land and building of the business to plant and machinery. If you have the collateral for the cash advance, you can have the money at relatively cheap rates and with much more flexible repayment options. This happens because your collateral is able to stand guarantor for your repayment.
What is Unsecured Business Loans: Unsecured Business Loan, as the name explains is a type of loan that doesn’t require collateral. It is typically at a higher rate of interest and is taken for a comparatively smaller tenor. Business Loan can also be explained from the point of view of the tenure
Short-term Business loans: Short-term loans are usually used for short-term working capital for a business temporarily in need of cash. These loans may be based upon seasonal fluctuations, and other short-term problems that a business may encounter. Usually, these loans are paid within 1 year to 3 years
Long term Business Loans: Long-term loans can be given to business owners that are well established and wish to increase their fixed assets, for related business acquisitions, and for expansion. Long-term loans may also be given to start-up businesses, usually for purchases of land or buildings, construction efforts, and long-term working capital, these loans have terms that run 3-5 years.
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