Loan Types
What you need to know
These are the basic types of financing that you can receive from banks or other financing institiutions.
Line of Credit
Credit lines from which the business can draw funds at any time, without going through an application
Term Loans
Loans disbursed and repaid in periodic, fixed installments. Fees for borrowing are determined by a factor rate.
Merchant Cash Advance
Type of funding that is not a loan. You are not requesting a loan, you are selling a portion of debit and credit card sales that will occur in the future.
Accounts Receivable
This loan is offered by banks or third parties. When a company takes out an accounts receivable loan, the financing institution will use the accounts receivables as collateral for that loan.