Popular Types of Business Loans for Small Businesses

Every business encounters major challenges in the cash flow at some point, which may necessitate borrowing of funds in order to sustain business operations. For startups, financial difficulties may come knocking at the door early on.

Fortunately, small businesses that find it difficult to finance all their projects have a number of avenues to turn to for support. Finding a lender is not as tedious as it used to be, and the choices are more numerous today. There are bank loans and merchant service providers. Some loan packages are offered by government agencies, which attract many borrowers since they come with guarantees other lenders cannot provide. Loans come in all forms and sizes, and some are tailor-fit to meet the specific needs of the lender. The availability of more than one option is an indicator that business owners must evaluate their needs first in order to ascertain that a specific type of loan is indeed the best recourse given their current situation.

Short-term Vs. Long-term

Two basic types of loans available to small business owners are long-term loans and short-term loans. Long-established commercial lenders usually offer long-term loans that have low interest rates. The amount of money is large enough to cover huge expense, such as additional capital needed in business acquisition and related activities. Small businesses looking for working capital can approach these lenders, and they usually get approval if they have a formidable business plan.

Meanwhile, short-term loans are usually issued by credit unions and banking institutions. Whereas a long-term loan must be paid on a monthly basis, short-term loans are paid at the end of the term of the agreement. The interest rate is usually higher compared to short-term loans. Retailer looking for additional funding for a short project that is expected to provide huge profits in a brief time period can benefit much from this type of loan.

Alternative options

Aside from conventional sources of funding, borrowers may opt to avail of alternative lending offers, such as those offered by online merchants. Applying for a business loan is now quite convenient since every step of the process can be conducted online. These offers are also quicker to process. It is possible to access capital without the difficulty posed by traditional procedures requiring mounds of paperwork. Alternative financing options work best for use in meeting the needs of an expansion, or sustaining operations when there are cash shortfalls.

Small businesses that are in the early stages of operation often find it difficult to meet stringent requirements. Alternative lending methods are relatively more flexible, including cash advances, crowd funding, and peer-to-peer loans, among others. For small businesses, it is often easier and faster to secure financing using alternative means. Many business owners opt for alternative financing methods especially when they have urgent need for the money. There are situations where the time frame is critical because availability of funds determine whether the company’s daily operations can continue or not.

It is not that difficult even for startups to get approval for a loan if they have a good credit score and a positive cash flow as well.

Get BINbase Data That Helps You Survive and Thrive During Rough Economic Times

BINbase data is quickly becoming the nerve center of many risk management assessments among both large and small businesses. Truth be told, every business will face some type of credit card fraud. And in the past, there was not much merchant account holders could do about it. Until now. BINbase software is taking the financial world by storm and giving business owners the tools to lessen the chances of being victimized by credit card fraud.

Merchant account holders end up paying charge back fees when a fraudulent transaction occurs. So having access to reliable BINbase data can cut down on these costs dramatically and here’s why – a credit card’s BIN number can be run through a BINbase checker and verified before the transaction is processed. This puts the power back in the hands of the business owner and out of the hands of the scammers.

With the BINbase database you can learn all kinds of pertinent details about a card before you approve a transaction. You can find out whether or not the shipping address matches the billing address. You can determine whether or not the card has had any issues in the past, such as frequent charge-backs. In other words you can you better protect yourself from fraud with a simple BINbase search.

For those who are unsure of what credit card fraud, simply put, it’s the act of buying items using another person’s credit card information. Merchant account holder’s are highly susceptible to charge-back fraud.

This kind of fraud happens when a legitimate cardholder uses the card to buy goods or services but when the statement arrives, they contact the credit card company and tell the representative they never received the item or service or never authorized the transaction in the first place. A BINbase data system can help you better track these types of charges.

The next type of credit card fraud that affects merchant account holders is online credit card fraud. It’s the most common type of credit card fraud with transactions that people do on a day to day basis. Now this type of fraud can be a little complicated, where hackers steal credit card information without the real card holder knowing what has happened. To help avoid this problem, merchant’s can use the BINbase number system to verify the billing and shipping addresses to ensure they match.

With all this in mind, it’s fairly easy to get access to BINbase data and integrate the program into your system. The BINbase database is not open to the public but you can purchase either a single user license or universal license. The features you will have with your BINbase download will vary based on the license and the provider you choose to use.

Check the reputation of the BINbase data provider and make sure the BINbase list you receive is current and up-to-date. If you’re ready to open up new channels of information and prevent fraud from hurting your company, the BINbase database is a great place to start.