The Advantages Of Taking a Small Business Loan

 
Every business venture needs financial backing to support and outgrow itself. However the means and ways of obtaining this finance can be different for every venture. Few businessmen prefer to use their own funds and go for an all equity financing and others experiencing a financial crunch obtain certain loans and go for debt financing. Fortunately, there is a third and most thoughtful side to the financing options which is fondly addressed as debt-equity financing.
 

 
As the name suggests, debt-equity financing comprises of both the elements-owner’s funds and borrowed funds in a certain proportion. There are a several number of businessmen out there that believe that a profit making entity doesn’t really need small business loan are offered by certain market players because they are not facing any financial crunch.

Friends, the very first thing that you need to understand is that small business loans such as the ones offered by Lend Junction and Kabbage.com in the present times don’t just work to infuse requisite capital in your business entity. Of course the capital is there but it isn’t the only perk that you’ll get by taking a small business loan, in fact there are a number of benefits that even a cash-rich, profit making entity can derive by taking a small business loan, few of which are enlisted below.

  • The Leverage effect

You might be having apprehensions about obtaining a loan because it would put you under constant pressure of paying monthly installments. No doubt, there is an added responsibility and expense when one opts for debt option but there is a definite bright side to this story. The debt payment that you make regularly would show in your profit and loss statement on the expense side and would go on to decrease your profit, thus saving you a good amount of tax. Your tax payment would reduce considerably once you take the decision of taking a small business loan.

  • The funding is easy and fast

Most of the businessmen shed the idea of borrowing money from outside sources because they fear complicated lending processes and lot of paperwork that would ultimately lead to delay in releasing their money. Yes, taking loans might be a tedious and time consuming task when you choose banks as your lenders because every bank usually has a certain policy of releasing money. However, the situation is completely different when you choose business friendly lenders such as Lend Junction and Kabbage.com. These lenders give business houses small loans in no time and have a non-cumbersome loan releasing policy thereby making debt a more viable option than equity.

  • No collaterals

Small business loans like the ones offered by non-baking ventures namely Lend Junction and kabbage.com are offered on a no collateral policy basis which is something to look forward to for every businessman. This means you can secure as much money as you want for expanding and growing your business without mortgaging your house or property, a regular lending feature that usually lets people down.

Where do i apply?

You can apply with your bank or use on of these private lenders below:

KABBAGE.COM#1 Online provider of small business loans.  Kabbage puts the power of business growth back in your hands by giving you convenient access to working capital.

Enjoy ongoing access to your line, and take the funds you need day or night. Pay only for what you take and draw against your line as often as once a day.

Select the amount you need and they’ll deposit working capital directly into your bank or PayPal account. No waiting in line.

Requirements: 1+ year in business & $50K annual revenue.

Lines of credit from $2,000 to $100,000.

A+ Rating with the Better Business Bureau

LENDJUNCTION.COMAlthough business loans through banks can sometimes offer good terms, qualifying for a bank loan is much harder than qualifying through Lend Junction, and Lend Junction takes a lot less time.

Instead of spending your time filling out mountains of paperwork and determining what you can put up as collateral, you can focus on growing your business.

LENDJUNCTION is offering 3 kinds of business loans with very good rates and term.

Business Line of Credit – $2,000 to $100,000 (Term: 6 months per draw)

Business Term Loan – $5,000 to $250,000 (Term: 4 months to 24 months)

Loan Based on Revenue – $5000 to $250,000 (Term: 4 months to 18 months)
 

 

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