A Guide to Business Credit for Small Businesses

So, you are a small business owner and in need of finance. This section of my blog may help you to go through the process and improve your chances of getting the credit you need. Let's consider 4 various types of loans: 1) Short-term loans 2) Intermediate-term loans 3) Long-term loans 4) A line of credit. My time is limited today so we will only discuss two loans.

First on the list is: Short-term loans-This is one of the most common types of business loans and are usually for less than one(1)year. They can periodically provide working capital for a business temporarily in need of cash, and are typically repaid in a lump sum when inventory or accounts receivable are converted into cash.

Intermediate-term loans are often used for a business start-up, the purchase of new equipment, expansion, or an increase in working capital. The maturity dates ranges from one(1)to three(3)years.

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