Need A Business Loan? There's A Variety To Choose From

Online, September 6, 2011 (Newswire.com) - If your business has been adversely affected by the sagging economy, you may be tempted to bail it out using your own personal finances. But as a business owner, it's important you remember the cardinal rule of business finance: keep your business and personal finances separate.

Why is this so important? If you blend the two together, you could be risking your own assets by using them as collateral for business expenses. There are other options.

One option you may want to consider is using credit cards. If you have a card in your business name, you can use it to build your company's credit. You can use the card to make larger purchases, like with suppliers, thus enabling you to carry larger inventory. You may have a card that offers a cash back bonus, which can be a nice perk. You can also use your credit card statement to track your purchases and therefore manage your finances easier and better.

Another option is a business loan. Business loans can help you make large purchases, expand your business inventory or expand your facilities. They can even be used to purchase equipment or for hiring new employees. But be cautious when looking for a business loan. Make sure you shop around to get the best deal you can, with the most advantageous rates and terms.

If your business is small, consider a federal grant. The government offers small business grants to those who qualify - you just need to look for the grant that fits your business. And the benefit here is that you don't have to repay the loan.

Another option is a business credit line. This type of unsecured loan can help you manage your short-term costs and reduce vendor costs or hire personnel. A credit line can also help you build your credit - without the financial constraints of other types of business loans.

If your business uses its cash flow to keep things going, instead of expanding, then a credit line might be a great business loan option for you. This type of loan can help you efficiently utilize your cash flow, and keeping cash free for investment and capital expenditures. A credit line can help you obtain inventory and supplies without paying up front, which will also provide your with money when you need it.

Business credit lines, unlike other types of business loans, usually offer a maximum credit limit as well as a flexible repayment schedule, which means you will have money to spend on other investments - which means growth for your business.