Business Loan Philippines – What you need to know
Business loans – They are good at providing Capitals for Businesses, both big and small, and maybe for better or worse. Some include Lending Companies and Cooperatives, but Banks do this for a living, and they are pretty good at it.
The biggest advantage of having a business loan is not in the Capital Provision, but rather in its ability to keep your operations going. It provides you a lifeline – a safe spot to avoid using your personal assets as a means to fund your business. In a short call, it separates your Personal Funds to your Business Funds.
The type of Business Loans that you can use are the following:
1. Working Capital, which, as stated earlier, a Capital to start your business. All of these include expansion, maintenance, debt payments, and some emergencies.
2. Line Credit Loans will give you an already-made maximum amount to spend within the agreed time, while the Revolving Credit Loans replenishes your spending amount to maximum after you pay, which makes it flexible.
3. Online Loans are for quick approvals, and that’s about it. Be careful though, as overusing it might exceed the amount that you can pay because of its convenience.
4. Corporate Credit Cards works exactly like your own Credit Card. But the one who uses it is your own company, and will always be pulled out here for the company’s assessment.
5. Merchant Cash Advance is essentially the power to purchase beyond your monthly assessment. And, Repayment is easy here, as it will only pull and take from your Merchant Account. A truly ideal Loan for the businesses with expected higher sales.
6. Inventory and Equipment Loan is as the name says, its sole purpose is to be taken out whenever the owner buys and Inventory or Equipment. Also, Equipment Loans may also serve as a collateral in worst case scenarios.
Be careful in using Business Loans, however, as some of the Companies’ Loans become a Collateral, which may seize and sell your own assets. In other words, it’s pretty bad if you got to the wrong side, but just really nice, earning that sweet Capital enough to start your business.
If you want to learn more about Business Loans, read more here.