This question often plagues small business owners. Since the builder’s ultimate intention is to sell the condos, he might approach a lender in order to obtain temporary financing in the form of bridge loans. So it may be an individual money lender, a bank, or several debenture holders. Now, you might think that you don’t want a personal loan for your business.
The amount that can be loaned has also been personalized with regard to small business loans. New Business Loans can be derived in both secured and unsecured ways. A loan is a fixed amount of money that a financial institution grants a borrower, at a fixed or floating interest rate.
Top-up on Existing Loans – These loans are issued for expansion, replacement, diversification of an existing business. Far higher than what the bank provides, and the reason for this is these are unsecured short term loans. There are also others who want to start a new venture and may need a loan with no down payments to help the business get off the ground.
Convenience and multiple loan options – Besides a standard business loan, banks can provide a selection of loan choices for you to consider. The banks sold loans on mortgages which proved to be an extremely profitable business, encouraging them to sell more.
If you fall in that group, instead of using your personal money to run the business, you can consider getting a loan, whilst you work the business to make profit. This highly depends on the business’ financial needs and the business size, for example a start-up of a one-person company to hundreds of employees.