Equity loan to meet your cash requirements for your Business

The need of funds is always of prime importance in running a business. If the cash flow falls below a certain threshold there is always a risk of slowdown in business operations. Whenever cash in bank falls below the benchmark, it is time to pull additional resources and raise the level of cash. There are many ways of doing it and an equity loan from a private funder is a good option. A business owner can get a loan of approximately 60-70% of the equity value of the real estate security. The equity value of a home is calculated as the worth of the home at today’s market value and the amount of money that is owed to mortgage. Generally, the loan amount for an equity loan varies between $20000 to $2000000 depending on the business and the equity loan requirement. Unlocking the equity of your home makes sense in some circumstances because it helps you to raise cash instantly without the need to provide documents and financials to the bank. Though there are several ways in which funds can be raised, an equity loan makes better sense when time in deciding in crucial.

 Equity Loan

An equity loan can be obtained by any business owner. It doesn’t matter what type of business you run. However certain types of businesses require further enquiry more than others. Businesses such as retail, manufacturing, transport and logistics are a few of the common businesses helped with an equity loan. The repayment terms and conditions of an equity loan are similar to any other loan products. There is a fixed time period within which the loan has to be repaid and the monthly repayment amount is fixed at the beginning of the loan term. Generally equity loans are taken for a short to medium time frame ranging from 6 months to 12 months.

There are several benefits of an equity loan.

  1. Since it is a secured loan, private funders are always ready to consider the loan request based mainly upon the equity value of the home and after verification of the property documents.
  2. The loan is generally actioned between 24-72 hours.
  3. An equity loan is a good option to raise funds when the business owner is sure of the repayment capabilities.

 

Since it is secured loan, nonpayment of loan can lead to the property being repossessed. The borrower and the lender should agree to a set of clear terms and conditions while negotiating the loan. If a borrower is not very sure of how to proceed with an equity loan application taking the help of a third party loan providing agency can be a good option. They are experienced in the business and provide end to end equity loan solutions, starting from selecting the right loan provider, documentation and negotiation of the terms and conditions. A business owner should be able to foresee these funds requirement and take necessary steps to overcome the hurdle. Opting for an equity loan is one of the easiest ways to raise funds. Funds available at the right time can help the business owner to run the business more efficiently without any operational hurdles.