There are three main types of Business Loans available in the loan market:
1.short-term Business Loans.
Short-term business loans are meant for meeting minor financial trouble a business may face from time to time. These loans are paid back within one year. The loan amount too is small.
2. intermediate Business Loans.
The intermediate business loans are utilized mainly by people eager to set up a new business. The amount is larger than the short-term loans and the repayment term too is longer. These loans may be used for creating the entire infrastructure that a new business might need.
3.long-term business loans.
The long-term business loans are utilized by both new businesses and by existing ones. Meant usually for construction of buildings and purchase of new piece of land for the company, these loans have a repayment term ranging from three to five years.
Business loans can be both secured and unsecured.
1.Secured Business Loans require collateral (usually the house of the person wanting to start a new business and the assets of the business for an existing business), but have easy terms and conditions.
2.Unsecured business loans don't require collateral and thus they pose very little risk to the borrower. However, these loans have strict terms and conditions due to the lack of collateral.
Business loans can be availed by people with undesirable credit as well. However, they are advised here to go for secured bad credit business loans. Very few lenders will grant you a business loans if you have a bad credit record and yet they are unwilling to offer collateral.
Before going online to look for the business loan deal you want, please make a plan regarding your business. Include points like turnover, profit, nature of business, current capital the business has, etc. in the plan. The plan helps the lenders understand your need better and increases your chances of obtaining the loan.