Credit industry has been growing ever since the concept of money was conceptualized. Services like MoneyGo can help you to secure small loans for your needs. Businesses are the number one users of credit facilities in the current market and financers and credit companies have been developing new forms of credit for them. There are a few basic types of loans that every business should know about:-

 

• Lines of credit

 

Just like credit cards, line of credit allows businesses to take small amount of money as the need arises. This is a great way of obtaining cash in cases of emergency. These types of credit facilities allow businesses to make bigger plans as they will be able to raise small amount of finances quickly if the need arises. This type of credits is usually taken by seasonal businessmen and retailers.

 

• Alternate financing

 

Nowadays there are a lot of non-financial firms that allow you to avail small amounts of loans on short notices. These can be against an asset or can also be generated from crowd funding. Modern businesses have been using this method with great results and have been promoting their usage as well. Peer to peer loans and cash advances are also considered to be part of alternate financing.

 

• Short term credit

 

The loans that are taken for a short amount of time are called short term credit. These are usually taken for small business activities like buying an asset, maintaining inventory etc. You won’t need to pay monthly installment for these loans as they are mostly meant to be fully paid on the due date.

 

• Long term credit

 

These are the most common type of credit taken by large scale businesses. These loans are usually taken to facilitate growth, acquisition of assets or machinery, refinancing a project and a lot more. These loans are taken for a long period of time and the company will have to pay monthly installments with interest.