Financial Services

Online lending has become the most common form of capital for a business today. The advance can be long-term or short-term depending on the risk factor of your business. The lenders set the fixed period over which the advance is provided. The rate of return is set number based on risk factor (example: $10,000 payback $13,500 .) Collateral is not required and it is not based only on credit score. Most lenders will work with 500+ credit. Although in the case of a start-up this security often comes in the form of personal guarantees provided by the entrepreneur. Many other financial services and SBA loans are available as well.

Bank loans are good for financing investment in fixed assets (such as plant & machinery, land and buildings). They are generally charged at a lower rate of interest than a bank overdraft.  The interest rate can be either fixed (e.g. 8% per year on the amount outstanding) or variable (where the interest rate varies depending on the bank’s base rate).

Bank loans tend not to be offered to start-ups or businesses with a track record of poor profitability and cash flow.  Such businesses are perceived as being high-risk by banks that, as a result of the credit crunch, are more cautious about the kind of lending they offer.