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Wysłany: Sob 12:02, 19 Mar 2011 Temat postu: abercrombie & fitch jacket - |
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Alternative Secured Loans For Businesses by Amanda Hash
When you are looking for finance for a business project,[link widoczny dla zalogowanych], resorting to secured loans is definitely the smartest way to go. And though you can always resort to regular secured loans based on real estate and equity, there are other alternative methods of securing a loan that are perfect for running businesses especially when the purpose is to solve a temporary lack of cash problem that may recur.
There are alternative secured loans for businesses that the financial industry has created keeping in mind the needs of the small business niche. These loans instead of using real estate to secure a business loan (which usually small businesses do not have as they often rent their offices),[link widoczny dla zalogowanych], just use certain assets that are within the reach of almost all small businesses.
Alternative Form Of Security
It is possible for businesses that work with credit cards to reach an agreement with certain payment processing institutions that are also financial institutions. These agreements consist on a loan that can be awarded to the businesses for which the institution acts as payment intermediary which is secured with the company��s future credit card sells.
Basically,[link widoczny dla zalogowanych], the lender knows exactly what the company��s income flow is (at least the credit card part of it) and thus can easily provide financing knowing the business payment capacity. Moreover, the amount of the loan��s monthly installments is directly debited from the business�� account since the lender processes the company��s client payments too.
Advantages Of Using This Method Of Financing
This method of financing provides the necessary funds for any business expansion or growing plans without the hassles of applying for other forms of financing that require more bureaucratic paperwork and presenting backing up documentation in order to prove an acceptable income to afford the monthly payments.
These loans instead, are easy to qualify for because the lender already knows the account movements of the borrower and can be sure to be repaid because he just needs to retain a fraction of the funds that arrive with each client payment made using a credit card. Since the lender grants the money but at the same time processes the company client��s payments, it has nothing to worry about and thus can provide very advantageous terms on the loan.
Also, not using equity when you have this other alternative is a smart choice as it remains as an option whenever an emergency situation arises and you do not have other sources of financing that can provide high loan amounts and affordable payments too. It is a way for the borrower to be assured that if anything unexpected happens he will still be able to obtain further financing.
This collateral alternative is becoming increasingly popular as it provides fair amounts of money and competitive interest rates without much paperwork or long credit verification processes. Thus, whenever you need funds for your business and if your business has payments made by clients with the use of credit cards,[link widoczny dla zalogowanych], you can check with the financial institution that provides the payment processor services whether they provide this kind of loans.
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