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The basics of business loan

20 Apr, 2009 By:Unknown in Business Loan,

Business loans are provided by various banks to business people for their short or long term financial needs. A lot of times it is important for businessmen to acquire a certain amount of money for running their enterprise. It is well known that without the required capital no business can run. For any business whether in initial stage or in growth phase, capital is required to keep up the momentum.

Banks and other financial institutions offer business loans for expanding, modernizing or improving small, medium or large scale businesses. Banks often offer loans that are either secured loans and unsecured loans. A secured business loan means that the businessman keeps something as collateral against the loan amount taken. Collateral can vary depending on various factors. It can be anything from raw material to finished products, land or even the building of the business. In secured business loans the interest rates are comparatively low and they have much more flexible repayment options.

Secured loans are long-term loans that can be given to business owners that are well established and wish to increase their fixed assets or expand their business. Long-term loans can also be provided to start-up businesses, usually for purchases of land or buildings, construction efforts, and long-term working capital. These loans have terms that run 3-5 years.

On the other hand, unsecured business loans do not require a collateral. It is often at a higher rate of interest and are taken for a comparatively smaller tenure. These short-term loans are usually used for short-term working capital for a business temporarily in need of cash. It is needed mostly due to seasonal fluctuations, and other short-term problems that a business may encounter. Before going for a business loan properly evaluate the situation. See how badly your need the money and when. You should evaluate how much loan you should take that you can easily repay later.


on 18 Dec, 2017

Life indeed is GRACE, I'am Daan Sophia currently in California USA. I would like to share my experience with you guys on how I got a loan of $185,000.00 USD to clear my bank draft and start up a new business. It all started when i lost my home and belongings due to the bank draft I took to offset some bills and some personal needs. I became so desperate and began to seek for funds at all means. Luckily for me I heard a colleague of mine talking about this company, I got interested although i was scared of being scammed, I was compelled by my situation and had no choice than to seek advise from my friend regarding this very company and was given their contact number, getting intouch with them really made me skeptical due to my past experience with online lenders, little did i know this very Company "PROGRESSIVE LOAN INC. was a godsent to me and my family and the entire Internet World, this company has been of great help to me and some of my colleague and today am a proud owner of well organized business and responsibilities are well handled all thanks to Josef Lewis of ( So if really you are genuinely in need of a loan either to expand or start up your own business or in any form of financial difficulty, i advise you give Mr Josef Lewis of Progressive loan the opportunity of financial upliftment in your life Email: OR Call/Text +1(603) 786-7565 and not fall victim of online scam in the name of getting a loan. thanks

on 01 Oct, 2017

I am writing this Testimony because am really grateful for what Mercedes Lucas did for me and my family, when I thought there was no hope he came and make my family feel alive again by lending us loan at a very low interest rate of 3%. Well I have been searching for a loan to settle my debts for the past three months all I met scammed and took my money until I finally met a God sent Lender. I never thought that there are still genuine loan lenders on the internet but to my greatest surprise i got my loan without wasting much time so if you are out there looking for a loan of any amount i would advise you to email via: { }and be free of internet scams. thanks... Kathie Roper from California, USA.

on 25 Jul, 2017

Need business loans suresolutionsloan

on 27 Oct, 2016

Very true! Makes a change to see sooemne spell it out like that. :)

on 19 Feb, 2016

Hello.With all due respect to poiuervs answers, they are virtually all wrong. The worst thing you can do is borrow even more money and get into even more debt to pay off your creditors especially when there are other solutions.I assume you are in the UK? If you are, please make an appointment with your local Citizens Advice Bureau as a matter of extreme urgency. The idea is to REDUCE the amount of money you owe and not INCREASE it as others here think you should. If you owe over a specific amount say a315000 then it is possible to get a legal solution to REDUCE what you owe and write off that which you cannot afford to repay.This is the much harder option to go down, and it may take a while for such legal aspects of debt repayment to be concluded. The real benefit to you is that any existing debts could be repaid within 5 years and at an amount YOU can afford. Please do not go down the route of creating more and more debt when there are real viable alternative solutions available.Trust me this really IS the best way forward.Big L 266

on 18 Dec, 2015

it would be best to talk to an attorney that slieiapczes in bankruptcy. consultations are usually free and they will be able to tell you if it is possible. also ask them if you decide to ever go back for advanced degrees or other programs of studies (which many people do I'm sure hard for you to imagine now) how that default of the student loan would impact you then in the future. Good Luck in making a hard decision.

on 31 Aug, 2015

You could think this is false or exaggerated however it's not. Police stations are filled with processes about foreigners who deceived by the people who accompanied them. The plan is admittedly easy: take the tourist to a bar or club where you know (or are hired by) the supervisor and orders drinks. This drink will probably be at incredibly excessive worth and you'll have to pay them as a result of in the event you don't, both the manager or guards will not let you go out.

on 09 Aug, 2015

I want to start business which is manufacturing unit on my own for which I need start up loan. I heard there is special loan for women entrepreneur

on 09 Aug, 2015

I want to start business which is manufacturing unit on my own for which I need start up loan. I heard there is special loan for women entrepreneur

on 09 Aug, 2015

For women entrepreneur into manufacturing unit business is there any special loan for starting up the business
I need start up loan

on 09 Aug, 2015

I want to start business which is manufacturing unit on my own for which I need start up loan. I heard there is special loan for women entrepreneur

on 04 Jul, 2015

I am Joseph, I started my business in the month of Oct 2014 (6 months back), we provide insurance & claims services to motor & auto construction equipments, we also sells automobile gadget as a cross sell product. The Initial investment was 7 lak, i was trying to arrange a business loan, but most of the banks required 2 years old business. Finally I started with support of friends. Now I wanted to return the amount, it will be great support if anybody can help me to avail a loan of loan of Rs.6 lak.

on 18 Jun, 2015

sir I want to start business
but I haven't many because I need many 3 lack I have certificate 12 passed first division 64 • /•

on 28 May, 2015

I need a loan for starting business.But I have nothing to show as collateral to bank except my qualification.

on 06 Apr, 2015

sir iam starting business in aluminium anodizing in banglore peenya pls in, starting in 3laks amount

on 18 Jan, 2014

Respected all,

please advice me how can i get loan for starting my business through my graduation(commerce stream) degree.

on 11 Jan, 2014

Dear/Madam, My self Rehman I want to start a wholesale business products of TEA Paudar at Bangalore of my self finance. After start the business how many month later I will be eligible for applying for business loan. I have needful for a loan why not I am a not reach man but I want start a good business for my & family feature . Now what I do? Give me the solutions. Thank & regards with REHMAN.

on 27 Oct, 2013

hi iam planning to start consultancy business in chennai.i dont have any collatral.i need small loan minimum 1lakh.can any one suggest.

on 28 Mar, 2013

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on 26 Mar, 2013

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on 15 Mar, 2013

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on 06 Mar, 2013

There is no such thing. When you use those types of lender, they prey upon pelope like you with high fees that make the mob blush. If you want reasonable fees, use a legit bank ..but I am willing to bet you do not have the credit and income for that or else you would not be resorting to online lenders.

on 12 Feb, 2013

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on 10 Feb, 2013

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on 29 Jan, 2013

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on 11 Jan, 2013

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on 03 Sep, 2012

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on 11 Jul, 2012

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on 06 Jul, 2012

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on 05 Jul, 2012

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on 21 Jun, 2012

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on 09 Jun, 2012

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on 06 Jun, 2012

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on 28 Oct, 2011

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