5 Specialized Lending Programs Every Business Owner Should Know

When you own or manage a business, you need to make sure that you fulfill all your contracts, meet your deadlines, pay your employees, and much more. A lot of these responsibilities require you to have access to a dependable source of funding.

Cash isn’t always the most readily available resource, especially for a new company. Fortunately, there are ways to borrow money effectively. Read on to learn about 5 important lending programs you should know about as a business owner.

1) Stock Loans

One type of financial resource that many companies utilize is the stock loan. It can be very useful when done correctly. If an individual or business owns stock, credit can be taken out against this resource. Many people like this kind of lending program because it doesn’t put their major investments and personal items at risk like some other types of lending programs might.

International options, such as stock loans for Hong Kong and other Asian markets, are becoming increasingly popular. Securities in these markets have taken off in the last few years and are expected to see further growth. This type of lending program also focuses on short selling, which can be a smart strategy for investments.

Specialized lending programs image 444442) Business Lines of Credit and Business Credit Cards

A popular solution for many businesses is to open a business line of credit. These are good options, especially if you have cyclical cash flow issues from time to time. Business lines of credit are often used for things like financing small projects, developments, as well as payroll.

Similar to this, but on a much smaller scale, is the business credit card. It is just like a traditional credit card, but it is taken out and paid through the company. These are best for minor, everyday types of buys. For example, you may like to use it for travel or to take clients out for meals. Just remember you’ll have to pay it back.

3) Term Loans

A term-based lending program is one of the most common resources available to businesses. They are usually offered by a major lender like a bank or other financial institution. The lender gives a business a large sum of cash if they agree to pay it back within a fixed time frame.

These types of agreements can be long term or short-term. Long-term options are useful if you are purchasing something large and expensive for your business, like office renovations. The payment is then spread over many months. Short-term options are similar to this but are usually on a smaller scale for purchasing items such as machinery.

4) Small Business Options

If you happen to have a small business, you are eligible for special types of small business loans. These types of lending programs are backed by the SBA to help smaller business get started and stay afloat. There are a wide variety of types out there, but you should find the ones for which you and your company qualify.

5) Real Estate and Equipment-Related Options

If you are in the market for properties for your business to use, there are special lending options. The most common one is called a commercial real estate loan. You use it when you want to invest in real estate for your business needs.

If you require certain equipment for your business, you should look into equipment financing. You will find lending programs all over that cater to large-scale machinery and vehicle purchases.

As you look into more lending options, make sure to do thorough research. You must find the one that works for you, your financial history, and the financial future you hope to have for your business.