When you’re starting out in business, you might think that the capital you set aside to get started in business is all you are going to need. You plan to turn your profits back into the company and grow using your proceeds as funding. The truth of the matter is – most expansions cost a lot more than just your profit can handle. Commercial loans, even when used for the short term, are an essential part of growth. Let’s look at some of the main reasons you would want to apply for a commercial loan.First, purchasing or leasing new properties is costly. If you are looking to add new locations for your business, you will need to take out a commercial real estate loan. Banks expect this when companies are ready to expand, and that makes commercial real estate loans some of the most common kinds of commercial loans available. Being able to demonstrate a profit and a positive outlook for that to continue are important for the bank to consider.Second, if you need to buy new equipment or you are adding equipment to current or future locations, you may need a commercial loan. You may wish to consider leasing over purchasing, depending on how long you intend to keep the equipment. If it would be for as long as or longer than the loan term, then a purchase makes sense. You also can take the depreciation tax deduction as long as you are able to.Third, you might find that you need to add to your inventory, especially around the peak shopping seasons if you are a retailer. You might want to consider a very short term loan to purchase your inventory, then pay off the loan after your successful Christmas season or back to school season.Fourth, you may just need a boost to your general operating capital. These types of loans can help you weather rough financial times or get you started. Because these are more risky types of loans, the interest rate charged on them will be higher than on the short term inventory loans or even a real estate loan. But, when a business needs it, the loan is essential and can be the difference between making it or not making it.Fifth, there is your vehicle fleet to consider. You might have started your delivery business with your own pickup truck, but as you grow, it’s time to think about a bigger vehicle that is branded for your company. Here again it might be worthwhile to lease instead of purchase the vehicle, especially if you want to turn in the vehicle every two years and get a new one.All of these are kinds of debt financing. There is also equity financing, the kind businesses get from venture capital firms that typically confer a partial share of ownership to the capital lender as collateral. These are often the kind used for business owners (or potential business owners) who don’t have much startup capital of their own.Still, getting a financial boost from a commercial loan is not something to undertake lightly. Think things over, consider where you are now, where you want to be in five years, and where you want to be in ten years. Then, talk things over with a financial advisor to get his or her expertise and formulate your plan. Good luck, and may the growth be with you.

The purpose of a Student Loan is to help pay for tuition, class books and any other financial difficulties that students acquire during their time in school. Although, most students seem to think that once a Student Loan is given, they can do as they please with the money, as long as they pay it back. This is not the case. If you receive a Student Loan and distribute the money to your friends and family, you will be penalized and required to pay the Student Loan back immediately. Most students that receive Student Loans use the money for rent and utility bills, which is considered a financial necessity during their time in school and is acceptable. There are several Student Loans that are available to students, for example; The Perkins Loan and TheUnsubsidized and Subsidized Stafford Loans. The sole purposes of these Loans are to provide the students with as much help to succeed in their education as possible. Also, government Student Loans does not require a cosigner, but private institutions such as banks may require a cosigner, making it harder for students to qualify for a loan because of their lack of credit.The requirements for these Loans are as follows; if the student does not finish school they are required to pay their Loans back immediately, without a grace period. If the student graduates from their school of choice, there will be a grace period of six months after they graduate, before they are required to pay back their Loans. After six months, if the student feels that they are unable to pay the Loan back due to insufficient funds or they are not working at the time and are unable to pay the required amount, there are things that can be done to prevent your Loan from going into collection. Contact your school and notify them of your situation. Contact the Student Loan Provider and notify them as well, they will offer to put your Student Loans in deferment while you are out of work. The Loan Provider will then give the student another grace period to start their payment again at a later time. As long as you notify your Loan provider, they will work with you.Student Loans are nothing to be afraid of; as long as you take responsibility and make the required payments, it’s just like any other loan. Students that realize they are thirty, forty or even fifty thousand dollars in debt after they graduate, don’t realize that it goes towards their credit, which helps you in the long run. Although it seems like the future is far away it is closer than we realize and students will be thankful that their education not only provided them with their dream job, but that it is also allowing them to build a financial future.