What Are the Various Types of Commercial Loans?

A lot of people do not have enough capital, however, they wish to make big in the financial market. For such people, a lot of financial agencies are available that offer wide range of commercial loans. These financing agencies could be commercial banks, mortgage companies, private lending companies or mortgage companies.

Various types of financing institutes  offer different types of loans. For example, you can go for an

Acquisition & Equity financing loan for purchasing another company or if you are desire for a merger, then, an acquisition loan will work well.

Accounts Receivable Financing: Companies in the medical fields such as hospitals, long term care facilities, urgent care clinics, etc. need consistent cash flow. Such companies can choose these kinds of finance programs. Other commercial companies such as staffing agencies, manufacturers, janitorial services, etc. may also opt for these kinds of loans. These loans are very flexible.

Asset Based Loans: There are several Asset Based Lending Texas. These loans are secured by real estate. They may either be short term or mid term loans. To secure such loans, you can also use equipment, stock, inventory and other similar assets. Based on the circumstances, the rates of these kinds of loans may differ. Companies usually choose for these loans when banks refuse their loan request due to the less credit score of a company.

SBA Loans: These loans are appropriate for small businesses that have been running for a minimum period of two years. These loans are backed up by government for startup programs.

Bridge Loans: These loans are provided for a short term only. A Bridge Loan Lender Texas usually provides these loans by securing the stock within the company. Usually, there is at least some time gap between the starting date of a project and getting a traditional financing. Bridge loans can fill up this time gap.

Commercial real estate loans: Owners of commercial properties usually need mortgages for construction of buildings. Sometimes, they need commercial property Loans in Texas to keep buildings leased and also for building maintenance. Thus, a lot of financial institutes offer various kinds of Commercial Real Estate Loans Texas to help the commercial property owners.

Hard Money Loans: A lot of companies involved in construction businesses usually need these kinds of loans when they are not able to get a loan with their asset base. Thus, these short term loans are very beneficial to such companies. However, these loans may require personal guarantees.

Inventory Financing Loans: These loans are expensive. They are usually used by companies who have an existing factoring loan. These loans are best for companies who have at a very high rate of profit. The interest rates of these loans are very high.

Personal Loan: If you have a good credit, then it would be easy for you to qualify for a personal loan. These kinds of loans are expensive compared to the other loans as the risk of default on such loans is very high. The advantage of these kinds of loans is that the paperwork can be completed in a day. Thus, if you need cash in an urgent situation in your business, then, this is the best option.

These are different types of loans that you can opt for commercial purposes.