How Secured Business Loans Can Help Expand Your Company
Starting a new business can be costly, depending on what type of business you are starting. But once you get past all those costs and gotten comfortable, inevitably there will come a time when it's time to expand and grow. This is also another cost that you might not have the funds for.
This could put your business in a strange phase--the phase of not being able to afford the expansion and growth, but also not being able to afford staying where you are currently at. Instead of cornering yourself and your business into that position, here is how Secured Business Loans could help you out greatly.
Many companies will go through a stage where they are short on cash, but need more or new equipment in order to grow. An option that they may not have thought about is leasing the new or additional equipment that they need. Instead of leasing it directly from the equipment company, the company will find a lender to purchase the equipment and then lease it from the lender.
The lender will agree to lease the equipment for a certain amount of time and at the end of the agreed time, the company can either purchase the equipment for market value or purchase it for a predetermined price. Other leasing options can be to continue to rent the existing equipment or rent different equipment all together.
These types of startup business financing are ideal for really any type of business that is in what is considered the development stage. It is also great for any start up business that doesn't generate revenues. Loans that are $100,000 or less are considered "small ticket" leases and can sometimes be approved based on the personal credit of the owners or founders as long as they are willing to make the monthly payments.
This type of startup business financing is a wonderful way to get your business started. Instead of putting your entire life's savings into the startup costs, you can take the equipment financing and pay it back in smaller portions. Your company's financing will seem much more manageable in smaller portions instead of knowing that you don't have any of your life's savings left.
This could put your business in a strange phase--the phase of not being able to afford the expansion and growth, but also not being able to afford staying where you are currently at. Instead of cornering yourself and your business into that position, here is how Secured Business Loans could help you out greatly.
Many companies will go through a stage where they are short on cash, but need more or new equipment in order to grow. An option that they may not have thought about is leasing the new or additional equipment that they need. Instead of leasing it directly from the equipment company, the company will find a lender to purchase the equipment and then lease it from the lender.
The lender will agree to lease the equipment for a certain amount of time and at the end of the agreed time, the company can either purchase the equipment for market value or purchase it for a predetermined price. Other leasing options can be to continue to rent the existing equipment or rent different equipment all together.
These types of startup business financing are ideal for really any type of business that is in what is considered the development stage. It is also great for any start up business that doesn't generate revenues. Loans that are $100,000 or less are considered "small ticket" leases and can sometimes be approved based on the personal credit of the owners or founders as long as they are willing to make the monthly payments.
This type of startup business financing is a wonderful way to get your business started. Instead of putting your entire life's savings into the startup costs, you can take the equipment financing and pay it back in smaller portions. Your company's financing will seem much more manageable in smaller portions instead of knowing that you don't have any of your life's savings left.