Business Loans

Business Loans
Published By:
http://oakparkfinancial.com/

Operating a business takes money and just about everyone has heard the
expression you have to spend money to make money, but where do you get the
money if you aren't independently wealthy, or established? A business loan is the
answer to most business needs. It doesn't matter what size a business is, almost
every business owner at some point has to consider a loan. A business loan can
help a business get started, expand once it's on its way and growing, or get a
business through the tough spots that happen occasionally. Deciding on a
business loan is a key step, but which loan is right for you and how do you decide
between the many different various types?
Skip the Loan and Use Plastic
Some business owners opt for a slight variation on a business loan and choose to
use credit cards to back their startup, expand on an existing business, or help
their business through a tough stretch. The positive reason for using credit to
fund your business is that it is often easier to get, or already existing in a personal
credit card, but there are a couple of serious negatives to using this type of
business financing.

The first negative is that unless your existing credit line is unlimited there might
not be enough funding on your credit cards. The second negative to using
personal credit cards is that your personal and business cash flow is not separate.
This can create havoc if you need to use your credit for important personal needs
and it can have a similar effect on business funds if you suddenly have to tap into
your credit for personal reasons. Lastly, the interest rate on credit cards is
normally much higher than any of the various types of business loans. Do you
want to learn more? Visit Oak Park Financial.
A Bridge Between Credit Cards and Business Loans: Lines of Credit
A line of credit operates much the same as a credit card. You apply for a business
loan line of credit and based on your qualifications you are approved for up to a
certain amount. You are not charged on the loan until you actually use the money
and are only charged for the amount you actually use. Another similarity between
lines of credit and credit cards is the loan is often an unsecured loan meaning no
assets are used to guarantee the loan such as homes, cars, the business itself.
However, unlike a credit card business lines of credit have interest rates much
closer to a traditional loan level.
On the downside those interest rates are usually variable like a personal credit
card and go up or down over the period of the loan. Another downside to lines of
credit is that like a credit card your payments will usually be only a little more
than the interest rate each month. Checkout OakParkFinancial.com for more
info.

This may seem like a plus at the start because the monthly payments are so low.
The catch there is that lines of credit to not extend forever. There is almost always
a set number of years for the loan amount to be available. At the end of that time
(and sometimes within the last two years of the payback) money is not longer
available. After that period, the payments are higher to make sure the money is
completely paid back by the end of the loan.
If you have the discipline to make yourself pay more than the minimum every
month in order to pay down the loan, this can be a good loan to get. It allows for
times when money is tight. You can pay the minimum at those times without
risking a default on your loan. You may want to check out
http://oakparkfinancial.com/ for more.
Summary:
Business Loans from Oak Park Financial are available in all 50 States - the best
solution for managing your business cash flow needs. They consider more than
just credit score and make loans to a wide variety of business owners and credit
scores.
Visit this site to learn more:
http://oakparkfinancial.com/