An Outline of Business Loan Categories and Their Usage



The average percentage of loan products has increased over a few decades as an economic necessity and for solving the needs of financial circumstances. And, a major part of these loans involve business loans. There are many entities that participate in the creation of different financial products which is managed by risk management professionals and information engineers. There is no denying to the fact that the requirement of one entity may differ from the other. Therefore, it became necessary to create, improve or break down loan services for continuous flow of money in such a diverse marketplace. This is being the reason, different types of business loans are available in the market today. In this blog, we have detailed out some of those business loan categories for you all so that you can make an informed decision while applying for your desired loan type.

Let’s learn what these are:

Machinery and Equipment Loan

Constant evolving is essential for staying competitive in the market. From big businesses to the small scale ones, this is important for both. Therefore, a business runner needs to focus on newer and better ways for achieving high quality output while lowering the costs. One of the best ways to evolve is keep upgrading the machinery. However, buying new machinery or upgrading an existing one can cost a lot. Here, you can be saved by getting machinery and equipment loan and see yourself thriving in the market.

Working Capital Loan

Every business requires money for performing its operations in a smooth manner. But there is always a point, where a business many fall short of finances. In such situations, a working capital loan is considered to be an excellent loan product as it can be customized according to the working capital needs of a particular business while keeping in check all the cash flow and inventory management.

Merchant Cash Advance

There are times, when a business requires fast cash, however, fail to qualify for some reason. Here, it is better to go for Merchant Cash Advance as it allows the business runners to easily raise funds without having the need of going through the process of bank approvals. This category is not only counted as a loan product but it means selling of an asset or credit card receipt at huge discount. Since, it is not a loan product, so no payment amount or period would be set in this case.

Contract and Purchase Order Funding

This allows businesses to bid on their large projects that are being operated for governmental agencies. Such kind of funding may also include selling the projects to larger companies. Using this type of business loan, companies that were locked out of bidding process may sometimes become the players in million dollar deals.

Apart from the aforementioned ones, there are many other business loans that are designed to fulfill all your immediate business needs. Visit TI Lending for availing innumerable benefits from your collateral free business loan. Some of many perks that can be availed by associating with us for your business loan are as follows:

  1. Minimal documentation,
  2. Transparency in deals without any hidden charges,
  3. Simple eligibility criteria,
  4. Flexible repayment tenures, etc.


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