Understanding The Different Business Credit Services Offered

All businesses require credit and seek the assistance of business credit services at one point or another. There are times when any company, regardless of its size, experiences shortfalls in revenues and sales and may require additional capital to expand the business, purchase needed equipment or simply meet payment obligations. Whatever the case may be, businesses require credit and access to cash at various times. Therefore, it is always important to know what types of business credit services are available and who provides them.

Business Credit Cards

One of the most common forms of business credit for small businesses is the business credit card. There are many banks and lending institutions that provide credit cards for small business. Companies like American Express and Citibank are major small-business lenders and offer credit card products in many different variations for small business.

Business credit cards work much the same as a personal credit card in that they allow businesses to make purchases and even receive cash advances on their revolving business credit line. Business credit cards tend to have higher limits than personal use credit cards, but also may charge slightly higher interest rates. However they are very convenient form of credit for any small business owner in that the line of credit is always available - as long as payments are made on time.

Business Leasing Services

Another popular form of credit for many small businesses is the business lease. Many companies use business leasing to purchase expensive capital equipment or vehicles they otherwise may not be able to purchase. Many less established small businesses are not able to out qualify for true business loans for purchases of expensive capital equipment and vehicles; therefore, business leasing allows them a way to purchase these high cost items without having to apply for personal loans or suffer large outlays of capital that may be needed in the operation of the business.

Accounts Receivable Financing

If your company or business allows customers to charge their purchases, your company may be eligible to apply for accounts receivable financing. There are companies that will pay you a slightly reduced amount for Accounts Receivable that you have.

These types of companies allow you to get paid on your outstanding accounts receivable faster and then collect from the customers directly. However, these types of lenders usually only make loans and lines of credit available to established businesses with customers that have a proven track record of  payment.

Business Property Loan Lenders

If your small business is looking to buy real property, or develop new construction, your small business may be eligible to apply for a business mortgage or property loan. Business mortgages work in much the same way as residential mortgages except down payment requirements may be slightly higher and interest rates are normally higher than with residential mortgage loans.

Furthermore, term lengths for business property loans generally do not exceed 10 or 15 years. Many conventional banks provide loans for business construction and property improvement; therefore, to apply for a business mortgage or property loan, you should visit your local bank or research banks and lending institutions on the Internet that provide business mortgages.

To search for credit services that best meet the needs of your business, simply use your favorite search engine to research the types of lending options that are available. In most cases, if you have good personal credit - you will always be able to qualify for many small business loans and lines of credit.

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