Business loans

Within these different types of business loan – of course there is some overlap between them – you’ll find some that better suit your particular situation, e.g. you might be looking for u003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/startup-finance/u0022u003estartup financeu003c/au003e, equipment finance or u003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/working-capital-finance/u0022u003eworking capital financeu003c/au003e.u003cbr data-rich-text-line-break=u0022trueu0022 /u003eu003cbr data-rich-text-line-break=u0022trueu0022 /u003eDepending on how long you think you’d take to repay the loan you can consider:rnu003culu003ern tu003cliu003eshort-term business loans – usually between 3 and 18 months (often referred to as u003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/working-capital-loan/u0022u003eworking capital loansu003c/au003e)u003c/liu003ern tu003cliu003e‘term’ loans – usually between two and five years (‘term’ means medium- or long-term)u003c/liu003ern tu003cliu003every short-term loans – including u003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/revolving-credit-line-facility/u0022u003erevolving creditu003cemu003e u003c/emu003efacilitiesu003c/au003e and other business overdraft alternativesu003c/liu003ern tu003cliu003elong-term loans – these can run from 3 to 30 years, require monthly or quarterly payments from cash flow or profit, might restrict other financial commitments (e.g. debts, dividends or principals’ salaries), and can require an amount of profit set aside for loan repaymentu003c/liu003ern tu003cliu003eballoon loans – relatively small monthly payments, ending with final ‘balloon’ payment to pay off the remaining loan balanceu003c/liu003ernu003c/ulu003e

u003culu003ern tu003cliu003eYou can respond to opportunities or threats to your business quickly with a business loanu003c/liu003ern tu003cliu003eGrab that opportunity to grow your business; if you don’t have cash today to meet that opportunity, a business loan may be the option for you.u003c/liu003ern tu003cliu003eFurthermore, a cash flow hiccup may not derail your business if you don’t have the business finance options in place.u003c/liu003ern tu003cliu003eRepayments can impact cash flow- it is critical that the right loan amount with the right interest is considered as over leveraging your business may prove exceptionally damaging to your business outlook. Therefore, before taking out a loan, the repayment timetable and committed funds should be considered carefully.u003c/liu003ern tu003cliu003eLow credit score can make a loan expensive – your credit worthiness determines how affordable a loan is. If your business has no assets to use as collateral, your credit is low, you may find that the same loan could be much more expensive than one offered to a more reputable business.u003c/liu003ernu003c/ulu003e

You can raise capital without losing equity in your business. If you want to borrow without selling equity, a business loan may be the choice for you. u003cbr data-rich-text-line-break=u0022trueu0022 /u003e u003cbr data-rich-text-line-break=u0022trueu0022 /u003eYou can capitalise on a business opportunity; capture that critical market segment or launch the marketing drive you are certain will propel your business to next stage. Or an unforeseen cash flow problem may not prove fatal to your business. Often when lines of credit are exhausted, raw materials and supply demands need to be met without the business folding, a business loan may be the first or last resort.

u003culu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/secured-loans/u0022u003esecured loansu003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/unsecured-loan/u0022u003eunsecured loansu003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/startup-loan/u0022u003estartup loansu003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/working-capital-loan/u0022u003eworking capital loansu003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/revolving-credit-line-facility/u0022u003erevolving credit facilitiesu003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/line-of-credit-non-revolving/u0022u003eline of credit (non-revolving)u003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/business-cash-advance/u0022u003ebusiness cash advancesu003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/asset-based-lending-2/u0022u003easset-based lendingu003c/au003eu003c/liu003ern tu003cliu003eu003ca href=u0022https://swoopfunding.com/ng/knowledge-hub/asset-finance/u0022u003easset financeu003c/au003e (i.e. equipment finance)u003c/liu003ernu003c/ulu003e