Thursday, July 12, 2007

Business Finance Tips

There are many differences when applying for business finance compared to when you seek personal finance.

The major difference is in the time taken for approval of a business mortgage loans. When getting store credit or a personal credit card, you wait patiently for 60 seconds, and all is done. Compare this to business finance where you need to supply two or three years figures, a details proposal of how you are going to repay the loan, and then it goes off to some mysterious loans officer to approve.

The role of a broker is helpful here where you can get a third party, who is earning money for getting the loan approved, to do all the leg work.

When you have your loan in place, as long as payments are regular, a business mortgage loans is very much set and forget.

So, it takes longer, you need more support documentation but when in place, it is usually hassle free. With a good business plan, you can get your finance requirements set for the next 2 to three years now.

1 comment:

  1. Anonymous2:52 pm

    Business financing is different because it is a bigger risk for the loaning institution. Be sure that all details are ironed out and all the necessary paperworks are done to minimize problems.