Primary Loan Types
Business loans can be classified as either a
short term or long term business loans.
Short Term Loans
Short-term loans, like their name suggests will
generally reach maturity in one year or less. They
are designed specifically to help your business get
through speed bumps. A common type of business that
will secure a short term type of loan is a seasonal
business. The loan will carry them through the
off-peak months. Short term loans usually take the
form of lines of credit, working capital loans or
accounts receivable financing.
Long Term Loans
Long-term loans on the other hand usually
complete between one to seven years, but they can be
much longer for larger purchases such as real estate
or heavy equipment. These types of loans are used
for major business expenses such as vehicles,
property, and construction equipment. They also can
be used to expand or acquire other businesses. |
