Commercial Loans
posted on 26 September 2010 | posted in
Business and Finance
There can be many forms of commercial loans but these primarily fall into a small number of categories. One of the basic variations are mortgages for business property. Another is working capital financing for operating expenses such as inventory and payroll. It is the second category that typically has the most different ways of getting funding. As one example, merchant cash advances represent a way of getting business finance help by using credit card processing transactions as the basis for calculating what can be advanced and how quickly it must be repaid. For another option, accounts receivable can be factored as a means of getting payment prior to customer invoice receipts. A version that is rapidly disappearing is the business line of credit. This approach is being phased out by banks for a variety of reasons, and the bottom line is that a new source for commercial loans will be needed to replace bank financing such as this.
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