Talking Cents

The different types of loans you can get as a business owner explained by our small business accountants in Sydney

As a business owner it is important for you to understand the different types of loans that are available to you. Your small business accountants in Sydney we will be able to offer sound advice on which will offer you the best investment process.

Having a general understanding of the different types of loans gives you more options to choose from – your business accountant can take you through the following different loans:

• Line-Of-Credit loan – this type of loan is one that all businesses should have with their banks as it is a back-up if cash flow becomes stagnant. These types of loans are intended for inventory and operating payments
• Instalment loans – are simple loans that are paid back monthly (including interest and the principal amount
• Balloon loan – This is where you are given the lump sum of payment when the contract is signed and only need to pay the interest back each month – then at the end of the contract the total amount given is due
• Secured and unsecured loan – an unsecured loan is when no collateral is pledged to the loan that you are applying for, whereby a secured loan is when collateral is put up for the loan
• Other types of loans include – Term loans, Second Mortgages, Inventory loans, Personal loans, guaranteed loans and more

The above loans are some of the most popular that your small business will potentially have to use throughout the lifespan of a business. It is important for you to consult with a business accountant in Zetland to see which is right for you.

Feel free to send our small business accountants in Sydney an enquiry if you have any questions or you can check out our full range of services here.