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Understanding Financial Terms

When you start shopping for a home loan, it might be easy to assume that all lenders are the same. After all, they all have mortgage brokers, paperwork, and impressive offices. However, when you really start exploring the details, you might discover that lenders all have something different to offer. On my blog, you will learn more about financial terminology, so that you can determine what you are getting into when you sign the terms of an agreement. This information is presented in an easy to understand, friendly way, so that you aren't bombarded by terminology and industry jargon that you don't understand.

Understanding Financial Terms

Business Banking Services That Go Beyond Checking And Savings

by Dylan Graves

Business banking services typically include checking and savings accounts. While you would expect this of any business account you open, what you may not expect are a few lesser known services. These services, and their descriptions, follow.

Business Investment Accounts

Any profits you accumulate can be invested in a business investment account. This allows you to divert profits into investments, which can then create more money for you to either invest again or redirect for business operations. It helps create a clear picture of what your business does and how it has potential to grow. It also gives you money for operations that you do not have to borrow because you have earned it on your investments.

Business Venture Capital

Other investors can contribute to a business venture account, which in turn helps fund businesses like yours. It is a loan that you have to repay, but it can be quite handy when you are strapped for operational funds. Because it is money that other investors put forth through the bank, the interest rate on this type of loan may be somewhat high in order to pay off the investors in profits.

Small Business Loans for Minority Owners

Women and minorities struggle the hardest to get a business started. As such, small business loan programs for women and minorities are offered through some banks. If you are a female business owner, or you fall under the category of any minority, you can request a loan through these programs.

Working Capital Loans

These are unsecured loans for your business endeavors that carry no interest, but you are charged a flat fee to borrow the money. You have to repay the loan within a year or less, including the flat fee. The convenience about working capital is that you only have to prove your income from the recent year or years in which you have been in business. No credit report is required, and this type of loan does not report to credit agencies.

Cash Advances Based on Previous Sales

Finally, some banks will give cash advances based on the sales you made during the previous month or the previous three months. The money has to be repaid within a month, so be sure to borrow only what you really need. Otherwise, you could be losing all of your profits from the succeeding months just trying to pay off what you borrowed.