What Is A Business Loan?

A business loan is a loan where the security is based on the assets of the business rather than the building it is in. Some lenders might require you to put your home or some other type of asset on the line in order to qualify for their loan, but a business loan does not make this a requirement.

Why do some lenders require collateral?

Lenders use secured loans to cover their bases in case the borrower defaults. This way, if a business owner is unable to pay back their loan, the lender has some way to recover the funds in the form of selling whatever asset has been secured to cover the costs. For many business owners, they may not always have the collateral necessary to obtain the cash they need. However, even if an owner does have assets that can be used to secure a business loan, they may not want to put personal property on the line for a business matter. ARC Private Lending can help! We offer business loans in all 50 states.

Why Do I Need A Business Loan?

There are many uses for a business loan that one may not realize.  There are also many industries that can benefit from getting a business loan such as construction, healthcare and social assistance, retail, transportation and warehousing, accommodation and food services, or your “mom and pop” neighborhood store to name a few.   Here are several examples of what the proceeds for a business loan can be used for:

• Buy New Equipment
• Purchase Inventory
• Launch Advertising Program
• Hire and Train New Team Members
• Refinance Existing Debt
• Purchase Supplies and Material
• Working Capital