Menu
Blogging Information
Blogging Information

What’s Keeping the American Small Business Going?

Posted on January 21, 2014 by admin

How to improve cash flow

Small businesses are a sizable force in the American economy. They employ more than half of the American workforce, and 543,000 new small businesses join their ranks every month. While they’re busy keeping the American economy afloat, lenders are busy keeping small businesses afloat. A third of small businesses in the U.S. use loans to help them cope with unpredictable business conditions, and 38% use them to maintain inventory. Fortunately, there are a variety of types of business loans today that company owners can rely on to get them through rough patches. Let’s look at a few of the most common business loans today.

Accounts Receivable Financing

This type of asset financing arrangement allows a company to use its receivables as collateral in a financing agreement. The company gets an amount equal to a reduced value of the receivables pledged. Generally, the age of the receivables will affect the amount a lender is willing to provide. The older the receivables, the less a company can expect. This type of financing is also known as factoring.

Business Equipment Loans

One of the most popular types of business loans today, equipment loans are specifically designed to help businesses purchase or lease the equipment they need to succeed. Many lenders will allow businesses to use the equipment itself as collateral. Leasing is recommended for equipment that will become obsolete quickly, but loans tend to work well for equipment that will not age quickly.

Business Expansion Loans

Designed to help businesses grow, these loans can only be used for expansions like franchising, new locations, or mergers with other businesses. Many companies find them fairly easy to obtain, simply because success necessary to expand often comes along with profitability and creditworthiness.

Merchant Cash Advances

This method also stems from the sale of accounts receivables, though the repayment program differs from accounts receivable financing. After the cash advance is given, the lender collects a certain percentage from every credit or debit transaction until the loan is paid in full. Many small business owners prefer this method because payments are made proportionally to their profits.

Short Term Business Loans

Among the most popular business loans today, short term business loans are often used to help business owners with short term needs, like improving cash flow or repairing broken equipment. They are usually re-paid within about a year, making them a low-commitment alternative to more lengthy term loans.

Working Capital Loans

Instead of being used to buy long term assets or investments, working capital loans are meant to deal with every day expenses like clearing up accounts payable or providing wages. Some alternative lenders provide them in the form of lines of credit.

There are so many types of business loans now available to small business owners, making it easier for them to perform the formidable task of keeping the American economy moving. Which type is right for your business?

Best business loans Business cash advance Easy business loan

Leave a Reply Cancel reply

You must be logged in to post a comment.

Hello Denver

Rocky Mountain greetings and thanks for visiting our site. We carry news, weather and financial info for Denver and all of Colorado. We also run articles that we know you will enjoy.

Recent Posts

  • When Pests Attack Defending and Reclaiming Your Home – Reference Video.net
  • When Pests Attack Defending and Reclaiming Your Home – Reference Video.net
  • Professional Lawn Maintenance Is Useful For Large Properties – GLAMOUR HOME
  • Tips for Improving Your Fitness Through Your Community – Gym Workout Routine
  • 3 of the Wildest Criminal Defense Strategies Ever Used – Wired Parish Legal Newsletter

Article History

January 2014
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Dec   Feb »

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • September 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • April 2018
  • March 2018
  • December 2015
  • October 2015
  • September 2015
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012

Recent Comments

  • Francis Green on Make Ordering Cheques an Easy Process!
  • Zoey Dixon on Edible Blossoms and Exotic Foods
  • Lewis Delgado on Stop Being Scared of the Dentist and Just Go!
  • Adam Gilbert on Enjoy Internet Marketing For Small Business
  • Randy Hardy on Three Twitter Tips for Establishing Your “Brand”
©2021 Blogging Information | Powered by WordPress & Superb Themes