There are a few types of loans that businesses can take out, and each has its own set of benefits and drawbacks.
Here is a brief overview of the most common types of loans:
- Short-term loan - A short-term loan is perfect for when you need to tide you over until your finances stabilize or you have enough money saved up to cover the costs associated with the loan.
These loans generally have shorter repayment terms than long-term loans, which means that you will likely pay them back sooner.
- Long-term loan - A long-term loan is ideal if you want to borrow money for an extended period of time in order to invest in something or purchase inventory.
The downside is that these loans tend to carry higher interest rates than short term loans, so be sure to calculate the total cost before making your decision.
If you're still uncertain about which type of loan is right for your business, contact one of our experts at Gude!