GETTING YOU WORKING CAPITAL

• Term loans are used to acquire non current assets, which include things like equipment, vehicles, and furniture. 
• Term loans are typically amortizing, meaning they reduce with periodic payments (often monthly). At the time of loan advance, both the borrower and the lender will have already agreed upon a repayment schedule. 
• The loan repayment period is generally aligned to the useful life of the underlying asset being financed.

• A line of credit (LOC) is a preset borrowing limit offered by banks and financial institutions to their personal and business customers.
•  Lines of credit can be used at any time until the limit is reached. 
• The limit is set by the issuer based on the borrower's creditworthiness.

• A fix and flip loan is short-term financing that real estate investors use to buy and renovate a property in order to resell it for a profit, a process known as house flipping.

• Working capital, also called net working capital, represents the difference between a company’s current assets and current liabilities.
• Working capital is a measure of a company’s liquidity and short-term financial health
• Repayment may be weekly 

• Asset-based loans involve something physical (an asset) that is used as collateral for a loan. 
• For most companies, it is inventory or accounts receivable that act as the collateral. 
• However, any asset whose value can be accurately quantified may potentially be used as collateral.

• Acquisition loans are another category of commercial loan. 
• These are used by businesses that are buying other businesses (or other business divisions) as opposed to physical assets like property or equipment. 
• While not universally true, acquisition loans tend to have shorter amortization periods and lower loan-to-values than other types of commercial loans.

• Equipment finance describes a loan or lease that is used to obtain business equipment. 
• Business equipment may be any tangible asset other than real estate – examples include office furniture, computer equipment, machines used in manufacturing, medical equipment, and company vehicles.

• Commercial mortgages are another type of term lending but they’re used exclusively to finance (or refinance) commercial real estate. 
• The analysis and underwriting techniques vary depending on whether the property is owner-occupied or if it’s an income-producing investment property; however, both tend to have more flexible terms (longer amortization, more favorable LTVs, very competitive pricing, etc.) than other types of commercial loans. 

There are numerous types of credit cards that are available for use. 

However, we will stick to the most commonly used types.

• Regular credit cards are the simplest type of credit card. They don’t offer perks and rewards. They are ideal for parents who want to provide their children with the convenience of using a credit card.
• One benefit of regular credit cards that they have a predetermined credit limit, which allows the user to control their use of the card. 
• Once the purchases have reached the limit, no further purchases can be made, and they will need to make payments first in order to open up the card again.

• Charge cards are beneficial in the sense that they do not charge interest or fees simply because the balance needs to be paid in full at the end of every month. 
• In the event of a failed payment, charges are made, or the card may be revoked, depending on the terms and conditions set by the financial company.

• This type of card is considered to be among the worst and most scheming type of cards, as it targets individuals with a bad credit history. 
• Its fees are exorbitant, but people still use them because of the lack of choices and opportunities to open a credit line elsewhere, so please be careful 

• This type of card is an option offered to those who have a balance on existing cards. 
• The debt is paid off with the new card and the owner pays the debt to the new card at ideally lower interest rates.