Imagine that you are an entrepreneur and you have just received a job offer, for which you can receive USD 100,000. However, there is one catch: to complete this order, you must invest in materials/equipment worth USD 10,000. It would be best if you could put that amount out of your own funds.
However, keeping money on account “just in case” means that they do not earn, and even lose value if you consider inflation, which is currently 2.8%. At the moment, however, you don’t have any funds, so you have the option of canceling the order or quickly finding money to buy the things you need, thanks to which you can get USD 90,000. The decision will certainly be easy, but it’s worth knowing where and how you can get the funds you need.
If you have a revolving credit line or bank loan
This is a good time to use it. If you do not have them, you can consider using this form of credit, because it can be obtained quickly and you do not need to specify what the funds will be used for. In addition, if the revolving loan is in an overdraft, each payment automatically reduces the amount of debt. If the credit line is open in a separate account, then we can usually regulate the repayment of principal or pay interest, and the capital once at the end of the contract.
Debit line at Good Finance
Good Finance offers a debit line to finance the needs of business operations. We can get from USD 10,000 we need to up to USD 200,000 for up to one year. Interest is paid back monthly and the capital is paid at the end of the contract period or at any time during the contract period.
Overdraft facility at Good Credit Bank
At Good Credit Bank, we can receive a maximum of USD 300,000 as part of an overdraft facility. The loan terms can be negotiated and the loan amount granted can be automatically renewed at the end of the contract.
In addition, the bank tempts with quick decision making, which is important in the case of our order. This loan can be granted even to a start-up company, but then the company’s development forecasts and financial projections are verified.
Or maybe a working capital loan?
When going for money to the bank, it is also worth considering the option of taking a working capital loan, as it is a short-term product intended for financing the company’s current operations. Some banks also grant loans for a long time, but usually it does not exceed one year.
It is most convenient for the entrepreneur to go to the bank where the company account is kept, because the bank records the inflows to the account and on this basis it can make a loan decision. However, if the conditions in your own bank are not favorable, you should also look at other banks.