Free Articles  >>  Business And Finance >>  Page 1442  >> 

Basics of Business Loans and Business Credit Cards

Business loans may be described as loans where the borrower would typically be a business instead of an individual and the lender may often be a bank. The lender often sets terms of interest rate and repayment schedule, to which the borrower would have to agree. Lenders may also differ in what types of loans they may offer. They might offer both secured and unsecured loans. Secured loans may require collateral either in the form of the business or in form of the main borrower's personal property, like a home.

The reasons a business might want to avail a loan may be various. Some of the reasons that a business might want a loan may be expansion, offering new services, launching a new segment of products or making purchases. The lenders may want to evaluate the current success of the business and its ability to be profitable. They may also generally assess the credit history of the business. In case a new company seeks a start up loan, the assessment would be difficult and hence it may mean that a loan may be issued if the owner of the business has excellent personal credit history.

Business loans may be approved only when a business would be able to show that the loan can be paid back easily. Business loans may be usually considered as high-risk loans and hence may not be an interesting business option to many financial institutions or banks. In case of smaller loans and small businesses, there might be government lending sources or companies that issue micro-loans that might be willing to extend a loan. It may however be noted that the rate of interest for business purposes might be high. Just like personal loans, the business would be required to make regular payments to the lender. Falling behind on payments would damage credit history and may make it very hard to get business loans in the future. Most businesses ought to be successful in order to keep borrowing. Banks and other lenders dont only look at credit rating but will also examine profits and projected profits that might be earned with new investment from business loans.

Business debts may be defined as debts incurred as a result of increased expenses and losses in the business. Though business debts are normal, debts in excess are bad. When business debts cross the limits, the impact may be bad on the business and may also disrupt the reputation of the business man. However, there are several services available which may help reduce the amount of debt. This business help may be sought from various online and offline business debt consolidation services. Business debt consolidation would be described as adding up of several debts which may have accumulated into a single debt amount and then deciding the repayment amount after negotiation with companies to which payments may be owed. This may be good as all payments may be summed up into one single payment and if bargained properly may be the rate of interest paid would be lower and thus easier and more manageable to make payments. It would be in the best interests of the business to seek the advice of a business debt consolidation advisor. Consolidation and negotiation of business debts may be profitable to both the sides. It may be profitable for you because you can repay the amount of business debt and still carry on the business and gain stability. It may be good for the financing company also as the company might lose out on any chances of recovery if it does not reduce the interest and on the other hand if it reduces interest rates, it may get back the entire loan amount minus interest, which it may not want to lose. So, this method is the best for both parties involved.

Business credit cards are credit cards issued to a company. Individual cards may be issued to authorized employees and officers of the company. In turn, these individuals may be free to use the cards for purchases approved by the corporation. Depending on the type of credit account extended to the company, the business credit card may have an established credit limit or may have no credit limit imposed. Generally, companies who make use of these cards develop specific guidelines that govern when and how the charge account can be used. It may not be unusual for one of the guidelines to place a cap on the amount of charges that can be placed on the account for entertaining clients, travel, or purchases of goods for use in the office. One of the benefits associated with many business credit card programs may be some type of rewards for the business using the account. The rewards may come in the form of points that may be issued each time charges are paid in full, or the rewards may be a cash-back bonus that may be applied to the balance of the card each time a charge is made. In any event, the presence of a rewards program allows the company to stretch resources while using the card to arrange company debt to best advantage. As with any type of credit account, companies wishing to obtain a business credit card may have to meet specific qualifications in order to obtain a favorable credit limit and lower interest rates. Issuers of the cards periodically review the status of the business and adjust the privileges and terms associated with the credit account accordingly.
About Author Sean A. Kelly :

<a href="" target="_blank"></a> business loans <a href="" target="_blank"></a> business debts <a href="" target="_blank"></a>&nbsp; business credit cards

Article Source:
Article Url:

Article Added on Thursday, March 29, 2012
Other Articles by Sean A. Kelly

About Personal Loans
Personal loans are probably the types of loans that you could take up to resolve your debt problem. Of course, these are not only meant for those who need cash to settle their debts. Personal loans are also for those who need a certain sum of money to cover medical bills, to pay for house renovation or even to pay for an extravagant round-the-world trip. Whatever the situation, you may want to be sure that you can always take up a loan to pay for whatever that needs to be paid. A personal loan...

Facts on Debt Consolidation Loan
If you have a debt problem and multiple loans that you are having trouble trying to pay up, then maybe you need to find out if a debt consolidation loan could help you with your financial problem. A debt consolidation loan is a loan that you could apply to pay off your various debts like credit cards, medical bills and even car loans. Sometimes, by getting a loan to settle up the other debts you have, you may be able to cut down on the amount of interest you were paying for your various debts....

Get the Best Debt Consolidation Plan For You
Getting the best debt consolidation plan that suits ones needs is of utmost importance. There are various debt consolidation options out there and thus one needs to evaluate ones debt situation well and thoroughly to proceed with opting for the best debt consolidation available. One needs to keep in mind that there is no one consolidation plan that is going to suit everyones debt situation all the same. There are a few debt consolidation plans that have become prevalent options for many...

Are Personal Loans For People With Bad Credit For You
You have probably heard of personal loans for people with bad credit in your search for loans. However, you may not be sure as to whether personal loans for people with bad credit are suitable for you. Choosing a loan to suit your needs can be a daunting business especially with so many types of loans out there. If you need to borrow the money for your own personal use, then you would probably need to be looking out for a personal loan that could cover your needs. Personal loans are the types...

Planning For a Loan Consolidation Debt
Do you have varying amounts of debt on your list? You may try for a loan consolidation debt which will allow you to consolidate your debt into one loan and one monthly payment. Loan consolidation debt can help in summing up multiple debts with higher interest rates into one loan with low interest rates. The consolidation loan may help if you have multiple credit cards with varying amounts of debt and to reduce the high interest rates by rolling over the amount onto a new, low interest loan. If...

How Your Credit Score Affects Your Loans
Getting loans from traditional sources such as banks is harder if you have a bad credit score. Some people make financial mistakes that affect their credit for the worse, and therefore, they may need to know how to get a loan with bad credit. Despite warnings that bad credit will discourage lenders from issuing loans, there are a number of lenders who specialize in lending money to people with bad credit. Whether you need money for home repairs, a new car or to help you get a new business...

Perfect Loans to Fulfill Your Needs
What are loans? A loan, in the financial sense, is the borrowing of money coupled with a promise to repay the amount borrowed (principal). If the loan carries interest, then the promise to repay would include interest payments as well as the principal amount borrowed. Installments are loans that are repaid in equal monthly payments within a specific period of time, and they come at a cost. This includes the APR (annual percentage rate) and the finance charge. Loans are of two types; secured and...

How to Manage Your Unsecured Personal Loans by Refinancing and Debt Consolidation
As you see the interest rates going down, you might like to know how well it would work in your favor and see how best can your loans be restructured to reduce your monthly payment and interest rate. And on the same lines the solution you might have thought of refinancing your loans. Before you do so, you need to gauge its benefits and evaluate if it is worth the trouble. Assess what type of credit you have and then compare the terms of refinancing to see if you can achieving any real...

Mortgage Loans Versus Consolidation Loans
Credit card debts among Americans are on the rise. Overspending is the root of the problem with at least 40% of Americans families spending more than they actually earn according to a research done by Federal Reserve Bank. Sometimes a credit card debt can get so overwhelming that you just do not have the means to pay it all off by yourself. So you end up considering alternative options and get assistance to pay off your credit card debt. It probably crossed your mind that you could get mortgage...

Advantages of No Credit Check Loans
No credit check loans would seem to be the best option for people with bad credit rating or bad credit history. These kinds of loans do not require an individuals credit report or score for loan advances. It may however be noted that usually these kind of loans though not dependent on credit checks do have a dependency on other factors. Added to this the interest rate at which the loan may be approved or advanced might be quite high. These kinds of loans may be availed by people who need extra...

Click here to see More Articles by Sean A. Kelly
Publishers / Webmasters
Article ID: 362428
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

243 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Linux Web Hosting In India Provided By AwareIndia

Company IDS