WHAT AREBUSINES S LOANS ?
Business loans are loans given to businesses for the purpose of financing their operations or expansions. Benefits: Business loans can help businesses cover expenses, invest in growth, and improve cash flow.
Types of Business Loans: Short-
SHORT-TERM LOANS
Short-term loans are loans that must be repaid within a year or less..
Uses: Short-term loans are ideal for
covering unexpected expenses , or ta king business
ma na ging ca sh flow, advantage of opportunities.
Example: Credit card loans, merchant cash advances, and payday loans
LONGTERMLOANS
Long-term loans are loans that must be repaid over a longer period, usua lly three to 10 yea rs.
Uses: Long-term loans are ideal for major investments in the business, such as purchasing real estate, expanding operations, or buying equipment.
Example: Traditional bank loans, SBA loans, and peer-to-peer loans.
APPLYING BU FOR A SINES S LOAN
Determine the loan amount needed, research lenders, gather financial documents, and submit the loan application.
Understand the loan terms and