What are the different types of Small Business Loans?
Unsecured business loan
Whilst the lender will assess how much you can borrow, no one knows your cashflow better than you so make sure you are comfortable with the proposed repayments and use the funds exactly as you intended.
Business line of credit
Always have a repayment plan if you are using these lines of credit for bigger draw downs to ensure you are making reductions.
Overdrafts are not only a useful for managing your cashflow but also a great tool to monitor your business – If you are spending more time in debit than credit there may be something you need to address in your business.
Make sure you have a good understanding of your customers and their ability to pay their invoices in a timely manner.
If they are late in paying your wear the cost.
There are different tax implications for each type of equipment loan (e.g. Hire-purchase, lease, chattel mortgage) so chat to your accountant about the most appropriate one for your business.
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