Line of Credit

This type of loan is extended to the best businesses at the bank. Typically a small business needs cash for short term reasons (less than one year) to maximize operations. A line of credit is set up for a maximum amount and the small business owner is allowed to transfer funds from the line of credit to the business’s bank account at will. Examples of the value of this loan are seasonal operations such as landscaping or retail operations relying on holiday sales.

The Different Types of Bank Loans

Bank Loan

There are many different types of bank loans, each having their own respective purpose.  All bank loans are categorized into two distinct groupings; secured and unsecured loans.  Within in each category of loans there are several different sub-types of bank notes used to make a loan.  Both categories require the owner of the small business...

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