Hi, I’m Cort Christie, Founder of Nevada Corporate Headquarters.
Business loans and business lines of credit each serve a unique purpose that could propel your business forward.
The first thing you need to decide is whether to apply for a lump-sum loan that offers fixed payments over a set period of time or a line of credit that you can tap at will. Your choice will depend on your plans for the money and how disciplined you are at handling available cash and repaying debt. A line of credit gives you the flexibility to take out funds when needed and repay them along the way.
Similar to a credit card, a credit line allows you to borrow up to a certain amount and then pay back and “re-borrow” from the line until the term expires, after which you will have a designated amount of time to pay off the debt. Lines of credit are designed to serve a company’s short-term financial needs. While not appropriate for financing fixed assets, they work well to fund expenses your company pays for over time.
Business loans on the other hand, provide you with a fixed amount of cash, over a fixed period of time that can be used for any legitimate business need, such as operating capital or purchasing real estate or equipment. Loans are valuable in that they deliver capital now. Your company repays the loan with interest in pre-arranged monthly installments over a defined period of time, and you can repay the loan ahead of schedule without penalty.
For more information regarding a business loan or a line of credit, please contact a Nevada Corporate Headquarters representative at 1-800-508-1729.