Business Funding

Apply For Correct Business Funding From Equity Tap

If you are expanding or starting your company, you will need sufficient finance behind you to ensure smooth operation.  But before applying for business funding, you have to determine how much money you require, and you should have at least a rough business plan, and consider the necessary timeframe for repaying the loan.  Also decide your capability for repaying the loan. Also consider getting advice from an accountant before making a new or large financial decision.

Most private business funders like Equity Tap offers two types of loans – a 1st mortgage Loan and a 2nd Mortgage Loan. You can also apply for a combination of two funding types, depending of the properties you are offering as security, and if they already havce a 1st mortgage on them.  

Some loan scenarios will have a faster approval time, while others might need more collateral if the value of the properties comes in a bit lower than expected. 

It is important to know which funding type will be perfect for your business.  But always remember that indecision should never get in the way of company growth or expansion.

Factors To Consider Before Applying For Business Funding

Before you submit the online loan application to Equity Tap, you should consider the following factors that will assist you in determining the perfect funding type and loan amount.

• Funding Type

First, check for what purpose you need the funding. Is it for buying a new business or expanding the current one? Are you searching for funds to solve your cash flow issues? If you can answer these questions, it will be clear which business finance will be ideal for your company.

• Short or Long Term

Short-term business finance is perfect for getting your business up and running daily without difficulties. Long-term funding helps the business owners to remain afloat through the first few years for startups and turbulent times for an established enterprise.

• Past Funding History

If you already have a lending relationship with a lender, it is not always easy for you to apply for further business funding. However at Equity Tap, we welcome our past and existing clients back if they require additional funding.

• Requirement

Once you have identified the finance cost, make sure the benefit of getting the funds will outweigh the cost. Check if additional capital will bring enough revenue uplift and solve the production problems. In other words, calculate your ROI or Return on Investment.

• The Amount And Spending Purpose

Knowing how much capital you need for business and how to spend them will narrow down the different funding options.

• Risk Element

A proven business strategy can make every risk of business funding easy. But there are other alternatives for getting the necessary funds for innovative concepts. Also, try to find out where your competitors are getting their funds from.  May they too are using Equity Tap, but even they are aren’t we are here to help YOU.

• Cost

You can never get a loan from a private business funder without giving some asset or property as security. However, Equity Tap offers business funding to the borrower even with bad credit, loan arrears or Tax debt.

Different Types of Business Finance Offered by Equity Tap

Below are some of the business funds available in Equity Tap.

• Term Loans if 1 – 12 months

Term loans are business loans with a fixed term of up to 12 months. This loan type comes with a systematic monthly interest repayments for the entire term. The borrower can secure a term loan by a mortgage over their property.  

Term loans are perfect for long time investments like purchasing a massive asset or equipment. This funding is also best for companies with regular revenue. 

• Interest Only Business Loans

The borrower can lock in the interest rate, and take advantage of a low fixed monthly payment each month.  Interest Only loans are great because the payments are less, and with Equity Tap, you can extend the loan indefinietly.  

• Capitalised Interest

The interest rate can change anytime due to the market liquidity. In variable term loans, if the interest rate increases, the repayment also goes up and vice versa. Floating interest rate term loans are highly flexible as the borrower can pay back and change the loan amount whenever they want.

• Secured Term Loan

In a secured term loan, the borrower can secure the business funding with an asset or property. The lender will claim the property if you fail to make the payments. Some lenders also offer partially secured loans where the collateral is not as high value as the loan amount.

• Unsecured Term Loan (we don’t fund these loans)

This loan option is risky for the private business funder as the borrower does not offer any security against the finances. The loan fees and the interest rates are much higher than the secured loans. Also, it will be difficult to get approval for a person with a bad or poor credit history. In addition, the lender will offer a lower loan amount due to the high risk involved.

Unsecured business loans also hit your cashflow hard as the repayments are weekly or even sometimes daily.  On the other hand, our secuted 1st and 2nd mortgage business loans offer a fast and assured financial solution that works for the borrower..

Make a giant leap in your business by applying for secured business finance from Equity Tap today.