{"id":12373,"date":"2019-07-18T13:16:47","date_gmt":"2019-07-18T12:16:47","guid":{"rendered":"https:\/\/entrepreneursgateway.com\/clone-7-reasons-why-you-should-buy-an-existing-business\/"},"modified":"2019-11-01T14:26:07","modified_gmt":"2019-11-01T14:26:07","slug":"business-bank-loans-advantages-disadvantages","status":"publish","type":"post","link":"https:\/\/entrepreneursgateway.com\/business-bank-loans-advantages-disadvantages\/","title":{"rendered":"Business Loans: Advantages, Disadvantages & How to Qualify"},"content":{"rendered":"\t\t
Are you considering getting a business bank loan? If the answer is yes, then don\u2019t do anything before reading this article.\u00a0<\/p>
In this expert-written guide, you\u2019ll learn everything you need to know about what bank loans are, who they are suitable for and what the advantages and disadvantages are so that you can decide whether it\u2019s the best choice for you…<\/p>
So, get comfortable, grab a cuppa and let\u2019s dive straight in..<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t A loan is a specific amount of money that can be borrowed over a set time scale against a repayment schedule.\u00a0<\/p> Of course, when setting a repayment figure, there are several things to take into consideration \u2013 such as the duration and size of the amount borrowed together with what rate of interest will be applied.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t The price and terms of loans will differ between each provider, as it will be a reflection of both the amount and the risk to the bank that’s providing the finance. You may find that the terms and pricing may be negotiable for bigger sums.\u00a0<\/p> Banks loan money to businesses providing they can receive an adequate return for the money borrowed \u2013 which covers the administrative costs and reflects the associated risk of the business defaults. If your bank has a good understanding of how your business works, then this should help them advise what is the most suitable product for you and your business.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t It wouldn’t be advisable to go down the route of a loan for any ongoing expenses \u2013 simply because keeping up repayments could be difficult. It is recommended to fund these expenses from cash that is received from sales or by using an overdraft as extra padding. \u00a0<\/p> If you are unable to obtain either a loan or other forms of finance via your bank, then there are various other financial options that are available.\u00a0<\/p> Let\u2019s have a look at what a business loan is together with what steps are necessary for easier approval… <\/strong><\/p> So, unlike personal loans, business loans can be riskier for the lender, meaning that eligibility can be stricter, and applications longer. Typically, you will be required to gather financial details and important documents in order to complete the application process.<\/p> But what eligibility criteria is required to meet a business loan? <\/strong><\/p> Of course, this can differ between lenders but listed below is a common list of requirements that you will no doubt come across when applying for a business loan:<\/p> <\/span><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t It’s difficult to pinpoint exactly, which is the most important factor when it comes down to business loans, as each lender weights the criteria differently. One could base the success of the application on the business’ minimum annual revenue; another may look at how long the business has been trading, the collateral that has been put forward or even your personal credit score. The best thing to do is to do a little research into the specific lender that you are thinking of going with and ask them exactly what their requirements are for approval \u2013 failing to prepare could result in the application being rejected.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Banks and other large financial institutions will usually require you to complete an application in person; however, some newer online lenders enable the application process to be made online.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t
<\/span>There are various types of bank loans, which include:<\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
<\/span>Term loan advantages:<\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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<\/span>Loan disadvantages: <\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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<\/span>When aren\u2019t loans suitable?<\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
<\/span>What information should be included with an application? <\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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