Business Loans and Investments

Angielski dla biznesu: Kredyty i Inwestycje

Maj 13, 2009 Wydanie nr 5(85)2009 Wy�wietlono: 1094 razy

There are many different types of loans that a business might apply for, depending on the type of business and its particular needs and assets. A well-established business, for example, might take out an unsecured working capital loan, based only on the good credit of the borrower. A smaller business without a good established credit line will need some collateral to take out a loan. A business's accounts receivable might be used as collateral in some cases. A business may also sell their equipment to a lender for cash, then lease it back from them, to acquire fast cash.

There are business loans for real estate, for construction, to acquire businesses and to start them. There are professional loans for doctors and lawyers and such. It is very important for a business owner to know what type of loan is best-suited to meet his or her business's specific needs. There are:

Start-up Financing,
Business Growth Financing,
Inventory Financing,
Motor Vehicle Financing,
Equipment and Plant Tools Financing,
Business Property Financing.

If you have friends, family, or other people who want to invest in your business outright (become part-owners) instead of simply lending you money, you can raise money for your small business this way too.

Loans or Investments – Which Should You Choose? If you're trying to finance a start-up venture, it's better to seek equity investments, because you generally only have to repay investors if the business turns a profit. For ongoing needs, loans are better for businesses with cash flow that allows for realistic repayment schedules, and for businesses that can obtain the loan without jeopardizing personal assets.

If you're seeking a loan for your business, make sure you understand the basics. The success or failure of your business can hinge on borrowing money sensibly: you want to borrow enough that your company can reach its potential but not so much that you have severe difficulty paying it back.

Katarzyna Kaszy�ska Katarzyna Kraszewska s.c.