3 Different Types of Business Loans you Must Know About

Planning to raise finances for your business by applying for a loan? Then, here’s a small guide about the 5 kinds of loans provided by elite financial firms like Accord Financial that you will largely benefit from.

1. Business loans for Small Businesses

This is one of the best Accord Financial business loans type for small and mid-sized businesses looking for opportunities.

Now, whether or not you qualify for this loan depends upon the following factors.

• Whether or not your business is established in North America.
• Whether or not your annual sale is equal to or more than $100,000.
• Whether or not you have been existing for at least 2 years.

If the answers are yes and you have a clean credit profile, you qualify for the small business loan financing at Accord. A few key highlights about this loan type are listed below.

• It’s lent for a period of minimum 3 months and maximum 18 months.
• The sum ranges between $5000 to $75,000.
• It has a weekly repayment system with minimal interest.
• Once the first loan is completed by 50%, you can apply for the second loan.
• The loan can be paid in full after 3 months at any point of time.

2. Asset Based Lending

Asset based lending is also known as ABL. This is a type of loan that’s released on the basis of the value of your assets that include the following.

• Inventory
• Equipment
• Accounts receivable

Once the estimate is done and other parameters – the experience and efficiency of your management team – are inspected, Accord financial decides the sum that can be released. It ranges between $1 million to $20 million.

A few categories of loans that come under ABL and are very important include the following types.

• Lender Finance – It’s released for alternate/Fintech lenders.
• Retail Inventory Finance – It’s released for retailers, e-shop owners, and marketers.
• Debtor in Possession Financing – It’s released for businesses who continue to work while restructuring their assets under the bankruptcy program.
• Purchase Order Financing – This is done for businesses who are interested in letting Accord purchase their orders to be shipped to the customers as a token of guarantee.

3. Equipment Financing

Equipment financing will come in handy if your area of business includes:

• Forestry
• Energy
• Manufacturing
• Hospitality

It can be of the following types.

• Heavy Equipment Financing
• Construction Equipment Financing
• Commercial Equipment Financing
• Industrial Equipment Financing
• Medical Equipment Financing
• Agricultural Equipment Financing

All in all, Accord Financial offers loans of all kinds so that every deserving business can afford to thrive and exist in the market.

Kara Biddle