A Closer Look at Business Loan Programs for Small Business Owners

25 May 2016
 Categories: Finance & Money, Blog


Whether you are the owner of a small warehousing establishment or a localized agricultural store, getting to know the loan products and programs that are available could be one of the most important steps you take as a business owner. When you are the owner of a small business, your overhead expenses can be almost as high as your profits, and this means that finding extra money when you need it can be an incredibly difficult thing to do without taking out some kind of loan. There are a few business loan programs that you should get familiar with that could prove to be incredibly valuable when you need extra funding for your small business.

Working Capital Loan Programs. If you are looking for a loan that does not require you to have a good credit score, working capital loan programs are an awesome choice for a small business owner. These loans are typically offered by financial institutions that specialize in business banking. The terms of the loan are flexible, with some options like sales-contingent repayment plans in which a percentage of your sales goes toward repaying the loan. The amount of money you can get with a working capital loan will be based on your previous sales history, so you could easily get thousands of dollars in financing if you have substantial proof of your sales volume over time.

Flexible Term Loan Programs. Flexible-term loan programs are ideal for small business owners because the financing party will work with you to come up with a varying payment and loan plan that will best cater to your business and your business's financial needs. The loans can range in both size and duration according to what it is that you need and your usual profits. Flexible-term loans don't have pitfalls that many business loans have, such as balloon payments or erratic interest rates.

Commercial Real Estate Mortgage Programs. If you own the commercial property where you operate your business, you may qualify for a mortgage loan at times when your funding is low and you need extra financing. Commercial real estate mortgage programs work much the same as residential mortgage programs, with the exception that you may have a greater equity in the building than what the typical homeowner would simply because it is a commercial property. In some cases, you can even take out a commercial mortgage loan to make upgrades and renovations to your business.

To learn more about loan programs for your specific circumstances, look at a website like http://www.firstmortgagecompany.net.