Whether it was a month ago or a decade ago, your small business started with an idea. Maybe it was a new concept about how to provide a service people in your community desperately need, or maybe it was a brilliant idea for a product that the whole world has been waiting for. No matter what your idea was, it had to be strong in order to get you excited enough to tackle the world of small business loans.
Although an idea was the spark that ignited your business’s flame, the idea alone won’t get you very far. What you need to realize your idea to its full potential is financing. This infusion of assets allows you to create a space in which to explore your idea, buy equipment so you can manifest your idea, and hired employees that can help you to capitalize on your idea efficiently.
Keep reading to learn more about why small business loans are so hard to come by, how to understand some of the business loan terms you’re likely to encounter when weighing your options for financing, and how asset-based lending may provide a welcome alternative to what you’re being offered by traditional financial institutions.
Why Is It So Hard To Find Small Business Lending Solutions?
As we mentioned in a previous post about the way small business lending has changed since the Great Recession, finding commercial loans to start or grow your small business remains difficult for many, even as the U.S. economy experiences recovery in general. Why? Because banks are reluctant to lend money to untested borrowers who are embarking on a new venture with little experience or financial data to assuage their fears about default. As such, this gap in the market has given rise to alternative financing solutions, like asset-based lending, that can make it possible for entrepreneurs to access the capital they so desperately need.
No matter why you’re seeking commercial loans, it’s imperative that you spend some time shopping around and comparing the terms being offered to you by various lenders. In the event that it’s all very confusing and overwhelming for you, we’ve put together this handy chart to help you keep everything straight.
Common Small Business Loan Terms
See infographic below!
Need Alternatives? Our Asset-Based Financing Can Help
Feel free to bookmark, print, or share this chart on social media so that you can always access it when needed. Our goal here at The Commercial Finance Group is to help your business grow and thrive, boosting our economy in the process. We do this by offering customized lending solutions for small to medium-sized companies all over the country.
Take a moment to browse through our past success stories to see how our asset-based lending, factoring, and receivables financing has made it possible for hundreds of companies to gain access to the working capital they need in a timely fashion, and without increasing their balance sheet debt. Then, when you’re ready to learn more, please contact us using this online form. We’ll connect you with the closest Commercial Finance Group office so that you can speak with a financing specialist about your organization’s individual needs. We’ll work to get you approved for financing quickly and conveniently so that you can get back to what you do best: coming up with great ideas.
