Business owners are likely to take a loan from a bank or credit company in the hope of expanding their operation to new and additional business premises. When owners are already capable of handling a growing business and have experienced increased cash flow, they immediately engage with a lending company for financial access. Most business owners aspire to expand their business operations to new areas and markets, often by establishing another branch at a new location, which makes acquisition of business premises utterly essential.

During the start-up years, small businesses initially work with simple equipment to produce goods and deliver services. However, as the business gradually grows, competitive tools and equipment are necessary to increase productivity and meet increased demand, thereby growing profit returns. Accessing a business loan can automatically enable you to purchase better equipment to assist you in better running your business and meeting your customers' needs.

Undoubtedly, a business needs to maintain an adequate level of working capital to manage its daily operations. Sometimes, a business can fall behind, and often because of reasons beyond its control, for example, the seasonality of its products or services. In these the business' earnings may not be enough to run the operational costs. Hence, having access to fast and easy finance can assist a business in traversing down periods in its operations.

This loan is best suited for business owners who are considering investing in any aspect of the business, such as for working capital, equipment upgrade, purchase of a real estate or commercial renovation. Typically, these loans are interest-only loans, with the principal repaid at the expiry of the loan term. Payment must be completed on the assigned payment schedule. 

A business line of credit is similar to how a credit card operates. You, as a borrower, are given a fixed amount of money that you can use anytime. The business line of credit can be fixed or revolving. The revolving line of credit resets to the original amount once the borrowed money has been paid, which makes the borrower's credit fully available again.

You can use your business assets to secure financial assistance. An advantage of using a business equity loan is that you will be offered a low-interest rate and flexible payment options. Moreover, this type of loan poses smaller risks because you only have to provide your business assets as security, not your personal ones.

A business overdraft allows you to withdraw an amount that is greater than the balance of your account, and you can use the money without waiting for your clients' payment. This loan is best suited for business owners who are dealing with seasonal workers. To make this work, the lender assigns a specific interest rate for the amount of money you spend on the overdraft.

Business owners who lack the documents to substantiate their ability to the borrower and repay the money, for example, a newly established business, can opt for a low-doc or no-doc business loan to resolve any financial needs. However, this type of loan can put the lender at high risk because the borrower is not required to present any financial statements or income statements to get approved. That's why the lender adds a much higher interest rate to it. 

The advantage of taking an unsecured business loan is its quick approval. Whilst other business loans may require a complicated process before getting approved, you can easily get this one. The lender, however, will have to analyse your financial capability and check your bank transactions to determine the amount that you can borrow.

This is suitable for those who deal with receiving money from customer's invoices. Waiting for the money from invoices might take months after the product or service has been delivered, and this could create a cash flow problem. Invoice financing lets you borrow money against the amounts due from your customers.