All About The Different Types Of Business Loans

When it comes to business loans, you should know that there are probably as many types as there are lenders. It’s your job as the business owner to fully assess your needs to determine which loan product is best for you. And it’s your job too to find out which lender offers the best interest rates.

Here in this article, we will be talking about the most common business loans and what they are for.

SBA Loans – The SBA in SBA loans stand for Small Business Administration. These loans are long-term loans guaranteed by the government, allowing businessmen that have been turned down by banks to get low-interest loans that they can use for different business purposes.
Just like a bank loan, with an SBA loan, you are given a set amount in bulk, which you need to pay back over a period of time. You also need to pay fees along with the principal amount and interest.

Equipment Financing – This type of loan is something you need to get from financial institutions that specialize in this type of loan.  The lender will give you cash to buy the equipment you need. You then pay it back plus fees. Equipment Loans Online is the leading example of this type of loan.

Line of Credit – A line of credit lets you withdraw a maximum capital amount any given time. It works just like a credit card where you only pay the principal plus the interest rate.

Invoice Financing – With this type of lending product, you sell your business invoices to a lender, which then gives you a huge percentage of the total invoice amount minus fees, while withholding a certain percentage, typically 20%. With invoice financing, the lender will get the payments as they arrive.

Short-term business loan – With this type of loan, you are given a set amount, which you have to pay within a short time period, like one month or three months, along with fees.

Merchant Cash Advance – This loan product is unique in that repay the loan amount with a set percentage of your daily credit card sales.
Startup Loans – As the name implies, startup loans are for people who want to start a business. This is typically a multi-purpose loan where you are given a set amount so that you have the money to get your business started and keep it running.

As we said before, there are many financial institutions that offer these loan products, with some specializing only in one product. The thing with loans is that you often have to contend with high interest rates. However, it is possible to get a lower interest rate by improving your credit scores.

That said, before shopping for a loan product, take a look at your credit score and check how you can improve it. Lenders typically give preference to borrowers with strong credit scores, believing that they will be up to date on their payments and not default. If you have a bad credit score, get some help.

What Is Equipment Finance?

Business owners will find that getting the funds they need to purchase equipment will put a strain on their cash flow.  This is especially true if the business needs costly equipment such as IT gear and medical machines.  So what can a small to medium size business do in this situation?

large truckWhat is Equipment Finance and Why is it Beneficial?

When it comes to financing equipment, there are a few options available to business owners.  EF Online have solutions that will lessen the burden of capital acquisition.

1.  Lease Business Equipment

Leasing equipment is a good solution for companies that are interested in updating their technology or acquiring new equipment for their business.

When a company is leasing, the lender owns the equipment that is being let out.  The business pays to use it over a fixed term.  Many business owners love leasing equipment as it means that they can upgrade their equipment easily for a low price.

2.  A Hire Purchase Arrangement

A hire purchase is when a lender allows a business to take equipment to their premises and pay for it later.  The cost of the equipment is usually spread out over the loan term.  Once the borrower makes the final payment, the company will own the equipment.

One thing to keep in mind about hire purchase is that some lenders will expect the business to have good credit.  They may also ask for information about the business’s earnings and expenses.

3.  Renting Company Equipment

Equipment rental is a solid option when the business needs equipment for a specified period of time.  Companies often do this when they have events such as trade shows.

Equipment Finance:  Get Financial Advice From an Accountant

Depending on the nature of the business, getting financial advice can be beneficial when financing equipment.  An accountant may be able to advise clients on what is the more affordable option and whether or not the equipment is tax deductible.  If the equipment is tax deductible, businesses could save hundreds to thousands of dollars a year on equipment financing.

What Can Businesses Finance?

Many people hold the false assumption that only businesses that use heavy equipment can get finance.  This is not the case.  A business can get finance on various items.  Some of these include office equipment, computers, desks and medical supplies.

Getting equipment finance will take a lot of press off business owners.  If all goes well, the money that is freed up because of the finance can be invested into other areas of the business.

A Broken Window Is An Eyesore

A broken window on a building or a vehicle is an eyesore. If nothing gets done about it, people may begin to think that things are being abandoned or neglected. Avoid this right away with a quick window repair from

The first thing to do when you notice a crack or broken window is to remove the broken glass. Wear safety glasses and tape the cracked pane with duct tape to prevent the glass shards from falling out as you are working.

When you start looking for the replacement glass, be sure to locate the same kind of glass that was originally installed in the window. You will want to protect the value of your home and match it with the glass in the other panes or other windows in the room.

Even a tiny stone can make damage and be a significant safety problem. This is especially true when driving.

The best thing to do to prevent small rock chips and cracks from spreading, is to take action right away. A windshield needing a repair or replacement shouldn’t cause you stress.

There is a free mobile service that will come to your place to replace auto glass and windshields. They can do it the same day with not inconvenience for you.

These auto glass specialists are trained to install windshield for cars, RVs, campers, and even boats.

No matter who does the work, repairing broken window glass is still a nuisance.

It is always safer and faster to repair or replace a glass by calling on a specialist glass repair company, if you can spend the money to do it.

It is always best not to gamble on the safety of your family.  Glass repair technicians can set up in any location of your choice to perform the work. The car windshield they install should have a lifetime guarantee.

Cracked windshields are illegal in the United States. They not only reduce visibility, but also put your vehicle and passengers at risk. Your windows protect you and your family and they allow you to enjoy the view.

A cracked window should be replaced using high quality glass and sealants. If you are left with a dilemma of cleaning up the broken glass, remember to pad the larger pieces of glass with newspaper in order to avoid injuries.

Do I Need Mortgage Insurance?

Once you take out a mortgage loan, it’s likely that you will be offered some form of mortgage insurance. It may sound tempting since it offers the consumer some amount of protection in case things do not turn out well, but do you truly need it? Let’s take a look at what mortgage insurance is and what it can offer.

What is Mortgage Insurance?
Mortgage insurance is formally known as mortgage protection insurance (MPI) or mortgage payment protection insurance (MPPI). It is the type of insurance coverage that will pay your mortgage on your behalf in case of failure on your part to make the payments. It will cover for you in case of job loss, death or disability. There are two basic types of insurance. These are:

1. PMI or Private Mortgage Insurance
If you take out a mortgage with less than 20% downpayment, it is likely that you will be required to take out a PMI as well. A PMI offers protection to the lender in case the borrower defaults on payments. How much PMI you pay will depend on the amount of your loan and your downpayment, although in most cases you can expect the cost of your PMI to be 1/2 of 1% of your loan amount. PMI may be cancelled once your loan-to-value ratio is reduced to 80% or below. A PMI is meant to protect lenders against defaults. It is mandatory for most borrowers who offer a low downpayment.

2. Mortgage Life Insurance
A mortgage life insurance or MLI is designed for the protection of a repayment mortgage. In case the borrower dies or becomes incapacitated before completing payment of the mortgage, the insurance policy will cover the amount of the outstanding loan. Unlike a PMI, a MLI provides protection for borrowers, or at least their ability to pay back their mortgage. In case of your death, the insurance company will pay off your mortgage so you leave behind a house unencumbered by a loan. Unlike a PMI, a MLI is purely voluntary.

Mortgage protection insurance is usually offered by the lender or any equipment finance company. Mandatory insurance is usually included in the mortgage while optional insurance may be offered through mail.

Do You Need Mortgage Insurance?
Whether or not you should purchase insurance will depend on a number of factors, such as your age, health, any pre-existing health conditions, occupation, your wants and expectations, and your finances. MPIs are generally offered with a “guaranteed acceptance”, so you are not likely to get disqualified, even if other insurance companies consider you uninsurable. On the downside, mortgage insurance is a policy with declining benefits. Although you will pay a fixed premium for the duration of the mortgage, the amount of payoff that will be received will decrease as your loan amount decreases. Consider your options carefully and be aware of factors that may affect the outcome you want.

Plumbing For The Home

A PlumberWhether you are a homeowner or are just renting a property, it is important to ensure that all of the fixtures in the home are working properly. This will often mean having a look at the choices when it comes to finding a good plumber. A lot of people will not think about calling in a tradesman until they actually need it. The best thing for you to do in this situation is to make sure that you have someone who will be able to help you beforehand. As a result, having someone on call can end up making your life easier.

What Plumbers Can Do

There are certain services that you will not be able to carry out yourself. Plumbers can therefore do this for you. Of course, when you are looking for a plumber you need to make sure that you find someone who is trustworthy and secure. Take a look at their webpage if they have one. Make sure to take a look at the specific services that they offer and see if they have deals. It may be possible to hire a self-employed plumber but you will need to look around. A lot of the time, they will advertise in the neighborhood. All you need to do is ask. Make sure to take a look at the advertisements in the supermarket or even just go on the Internet again. There is bound to be someone there who will be able to offer you plumbing services.

Replacement and More

If your pipes are well past their best days then it may be time to get a new set in. Of course, this is going to mean a big project so you will want to find someone who can take it up in the most efficient and professional manner. When you are looking through the pipes, it is also a good idea to see how much you can save. Of course, this is your household’s infrastructure so you will want to spend a bit of money on making sure that it lasts for a very long time to come.

Getting in a plumber does not have to be stressful. As long as you can find someone who will provide you with a quality service, and who can be there on time, you can ensure that your home and its infrastructure runs well for many more years to come.

Add Value By Renovating

New KitchenIf you plan to sell your house sometime in the future, it would be prudent to complete basic renovations now.  Certain areas in your home should be in excellent condition, not only to increase resale value but to make it a more pleasant environment for you and your family. Beginning on these needed updates now will allow you freedom to choose the best time to sell your residence.

Taking care of your home’s fundamentals definitely adds value to it.  If the roof is showing its age, replacing it is an excellent idea.  Buyers are especially fearful of purchasing a home only to find water puddled on the floor after the first big rain.  Reroofing is expensive, but you’ll more than regain that amount in the sale of your home.

Another item of particular interest to buyers is the heating and cooling system in the home.  If your furnace or air conditioning unit is unreliable, replace it now for your own comfort and safety and a better price for your home when you decide to sell.

The exterior of the house needs to be in excellent condition as well, so invest in new siding or a coat of paint, if possible, but if not, replace loose pieces of siding and power wash the outside. Making the surface shine is important to completing a profitable sale.

Another simple and relatively inexpensive improvement is updating the landscaping.  Nothing elaborate is required, but curb appeal is important.  Updating the flowers and shrubbery can definitely make your home more attractive to house hunters.

Kitchen renovation is essential to adding value to your home.  The kitchen makes or breaks the sale of any house, so having it look and feel modern is essential to a profitable resale. Hiring professional help for this task is recommended, although homeowners with construction skills may be able to accomplish the needed updates themselves.

Potential buyers are lured by modern appliances.  Currently stainless steel is still in vogue, but whatever models you choose should be quality items with convenient features.  Cutting corners on this room will cost you money during a sale.  If buying new cabinets is too expensive, just replacing the doors may be an option.  You’ll give the cabinets a new look without going over your budget.

A kitchen renovation should also include new countertops.  You don’t need to choose top-of-the line materials, but you’d be wise to invest in something durable and attractive.  Granite is still preferred by many buyers, but you have many other options. Just do not choose anything too out-of-the ordinary since homes decorated in neutrals still have more appeal for many house hunters.

Kitchen renovation may take the lion’s share of your interior redecorating budget, but that’s to be expected.  It is better to put the bulk of your money toward updating the kitchen than other rooms simply because it can sell a home almost by itself. Once the kitchen renovation is finished, you shouldn’t have to do much to that room for years.

Bathrooms can be redone much more cheaply, if necessary, but new fixtures are a good investment.  Adding new towel racks and painting the walls help give the bathroom new life, and those things cost very little.   A simple but sleek tub and shower unit makes the bathroom more enticing and is another good selling point. Plus, your family will love a fresh looking, modern room.

Before beginning a renovation, be certain to carefully budget for each improvement. Make a list of the most important changes that need to be made inside and out and then draw up a timeline.  The advantage of beginning this process early is that you can do the renovations over several years instead of rushing to complete these tasks in the months immediately before you put your property up for sale.

If your plans change, and you decide you do not want to sell your home, then all you’ve done is increase your home’s value while making it more enjoyable for you and your family.  There is really no downside to renovations as long as you stay within your budget and can tolerate a certain level of upheaval. No change comes without some disruption, but the benefits of thoughtful renovation outweigh the inconvenience.