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Tips to Choose the Perfect Business Loan for Your Business

If you needs the capital to turn your brilliant idea into a long-running business, looking for a loan to expand, it can be difficult to choose between the various business loans available in the market.

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Tips to Choose the Perfect Business Loan for Your Business

If you’re a startup that needs the capital to turn your brilliant idea into a long-running business, looking for a loan to expand, it can be difficult to choose between the various business loans available in the market.

Many business owners stick to just looking for the lowest interest rates, under the assumption that this minimizes their liabilities. Some will be forced to look for loans with none or low collateral. But there are many options to consider!

Recommended: How to use the first business loan effectively?

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Business owners aren’t necessarily accountants or savvy with banks and non-bank lending. So, here are some tips to get you started on your way to finding the perfect business loan to build your business on.

What is a Loan?

A loan is any amount of money that’s given to you under the assumption that you will pay it back. If it’s from your dad, then it might be a zero-interest and indefinite term loan: you only pay what he gave you regardless of inflation, and he won’t take you to court if it takes you thirty years to pay it back.

On the other end of the spectrum, you might be taking a loan from a loan-shark who charges monthly interest.

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Most people will stick to bank loans for their legitimate purposes and do their best to provide the collateral or assurances required by banks. There are actually a range of other legitimate options that can be taken if a bank loan isn’t suitable for you.

Things to Figure Out Before You Start Applying for a Business Loan

There are five things you should know before you even start looking at business loans! These questions will require you to take a hard and honest look at yourself and your own business, and it might be easier to do it

  1. How much loan do you need? Can you afford to sell equity or take on partners rather than a loan? What will it change in terms of your business? If you intend to furnish all your prospective costs through a loan, then how soon do you think you will break even?
  1. What is the term you’re looking at? Are you in a fast-moving business and you intend to pay off all your costs in a decade? Or are you in the sort of business where you keep on leveraging your credit until you’re retiring or selling off your business?
  1. What interest rate can you afford? A combination of the interest rate on your loan and the term of your loan will show you what the real cost of your loan is over the full loan period. You might then prefer not to apply for a business loan and look at other options.
  1. Do you have any collateral? Many business loans will require hard collateral, often machinery, or physical property that can be repossessed in case you cannot complete your payments. Even if you have collateral, are you willing to risk it?
  1. What is your creditworthiness? It’s easy nowadays to get free or low-cost credit reports! Your bank or non-banking finance organization will check your credit score before offering you the loan. Frequently, a slightly low credit report will lead to a higher interest rate. You can wait and ask experts on how to improve your creditworthiness, so check your credit report before you apply.

Tips for Choosing the Right Business Loans

When you’re identifying business loans, what aspects should you look at before you apply for the business loan?

You should definitely do a comparative study on a number of points before finally making the right choice.

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Tip 1: EMI Calculations

Check what your EMI will actually be per month or per year, and what it adds up to over the full term of the loan. For unsecured loans, the interest rate is typically higher (to make up for the higher risk faced by the lender), and the EMIs are correspondingly higher.

Tip 2: Bow to Expertise

This is probably the first business loan you are applying for, and it’s also probable that it won’t be the last. But there are accountants, lawyers, and business management experts who have done this for a hundred other businesses and can spot pitfalls you wouldn’t know until five years later. It is a worthwhile investment to ask an expert.

Tip 3: Repayment Schedules & Terms and Conditions

Check your ability to pay your business loan back early without a fine, to change your repayment schedule and find out whether your EMI will be unsustainable over the long term.

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Tip 4: Flexibility

Look at options such as equipment financing or cash advances for shipments. These are also broadly in the business loans category but are not always clear to businesspeople who have not had previous experience with getting financing.

Tip 5: Lender Check

Even if you’re applying for a large national bank and you feel that you’re already sure about your lender, you should always check their past performance in the business loan category. For non-bank options or small lenders, and so on, this verification becomes even more important. If you have an agent or broker, ensure that they are also trustworthy.

Tip 6: Paperwork

Ensure that your business’ paperwork is absolutely clear. There should be no doubts about any of the licences, previous accounts, rental accounts or ownership of buildings or equipment, etc. If your paperwork isn’t absolutely clear, then your business loan will inevitably be delayed.

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Lines of Credit and Other Options

Along with applying for a business loan, from banks or otherwise, you can also consider credit options. In many cases, what a business needs is not a singular large loan but the ability to support itself when the liquid funds are not available. In this case, a business credit card can be a suitable option.

For business people who are aware of the option but prefer to use business loans, these are the things you should keep in mind while doing your research before you apply for a business loan.

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Business

David Beckham, Soccer Legend, Sues Hollywood Star Mark Wahlberg for Allegedly Defrauding Him of $16.4 Million

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David Beckham, Soccer Legend, Sues Hollywood Star Mark Wahlberg for Allegedly Defrauding Him of $16.4 Million

Former deep friends and business associates, soccer legend David Beckham and Hollywood star Mark Wahlberg, are now crossing swords, with the former suing the latter over an £8.5 million ($16.4 million) dispute.

David Beckham Lawsuit Against Mark Wahlberg’s F45 Training Company

In his lawsuit, David Beckham alleges that Wahlberg’s F45 Training Company behaved fraudulently and misled during business transactions.

The lawsuit also names Wahlberg’s Mark Wahlberg Investment Group (MWIG), and F45’s founders, Adam Gilchrist and Rob Deutsch, as defendants.

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The legal battle between Beckham’s firm, DB Ventures Ltd, and Wahlberg’s F45 Training began in 2022 and was later joined by Australian golf entrepreneur Greg Norman. However, the Judge directed the two parties to present their cases separately. Both Beckham and Norman alleged in their filings that Wahlberg misled them into becoming brand ambassadors. Beckham also claimed in the filing that he lost over £8.5 million because he did not receive the promised shares just before their value plummeted.

Beckham’s company, DB Ventures Ltd, had signed a deal with F45 Training, a company in which Wahlberg has a 36% stake and also serves as the chief brand officer. Beckham’s association with Mark began when he moved to California to play for the L.A. Galaxy and became F45’s Global Ambassador. Beckham, who has millions of social media followers, immensely benefited F45 through this association. However, Beckham never received the $10 million he was promised, and subsequently, the company’s shares tanked.

Wahlberg has refuted all the allegations as baseless and called for the lawsuit to be dismissed. He added that Beckham’s company is blaming everyone but not examining its own actions. Relations between Wahlberg and Beckham were very cordial, and the two were neighbors when the former English footballer moved to Los Angeles in 2007, residing in the same Beverly Hills location. Beckham also promoted F45 on social media, including Instagram, but the posts have since been deleted.

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Beckham’s wife, Victoria Beckham, celebrated her 50th birthday on Saturday at a club called Oswald’s, along with her family, including her children Brooklyn, Romeo, Cruz, and Harper. The birthday party was also attended by her former Spice Girl bandmates Emma Bunton, Mel C, Mel B, and Geri Horner. The guest list also included Eva Longoria, Gordon Ramsay, and Tom Cruise.

Also Read: 4 Inspirational David Beckham Hairstyles That Every Fan Should Try At Least Once

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Net Worth

Rizwan Sajan Net Worth 2024: How Much is the Indian Businessman Worth?

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Rizwan Sajan Net Worth 2024: How Much is the Indian Businessman Worth?

Who is Rizwan Sajan?

Rizwan Sajan is a distinguished Indian entrepreneur renowned for his founding role in The Danube Group, a leading building materials company based in Dubai. Despite humble beginnings, Sajan’s journey exemplifies resilience, determination, and the transformative power of entrepreneurship.

Rizwan Sajan Career

Sajan’s career trajectory reflects a remarkable rise from modest origins to entrepreneurial success. Starting as a hardware store employee in Dubai during the early 1990s, he laid the groundwork for his future endeavors. His entrepreneurial spirit led him to establish The Danube Group in 1993, marking the beginning of his pioneering journey in the business world.

Rizwan Sajan Net Worth

As of 2024, Rizwan Sajan’s net worth stands at a staggering Rs 18,000+ crores. This substantial wealth places him among the elite echelons of business magnates globally, underscoring his exceptional achievements and contributions to the industry.

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Rizwan Sajan Age

Born on August 8, 1963, Rizwan Sajan is currently 60 years old, symbolizing a lifetime of dedication, perseverance, and entrepreneurial prowess.

Rizwan Sajan Family: Wife and Children

Sajan cherishes a strong familial bond with his wife, Sameera Sajan, and their son, Adel Sajan, who is married to Dr. Sana Sajan. Their close-knit family dynamic underscores the importance of love, unity, and support in Sajan’s personal and professional life.

Rizwan Sajan Height and Weight

Specific details regarding Rizwan Sajan’s height and weight are not widely available, emphasizing the focus on his accomplishments rather than superficial attributes.

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Also Read: Karl-Erivan Haub Net Worth 2024: How Much is the Former Managing Director of the Tengelmann Group Worth?

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Net Worth

Karl-Erivan Haub Net Worth 2024: How Much is the Former Managing Director of the Tengelmann Group Worth?

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Karl-Erivan Haub Net Worth 2024: How Much is the British musician and bassist Worth?

Who is Karl-Erivan Haub?

Karl-Erivan Haub, a prominent figure in the German retail industry, was born into the influential Haub family on September 29, 1932, in Wiesbaden, Germany. He was the son of Erich Haub and Elizabeth Haub (née Schmitz-Scholl), belonging to the esteemed Mülheim family Schmitz-Scholl, renowned founders of the Tengelmann grocery chain.

Karl-Erivan Haub Career

Haub’s career trajectory was marked by his dedication to the Tengelmann Group, one of Germany’s largest retail entities. After completing internships in the United States and obtaining a degree in economics from the University of Hamburg, Haub joined the family business in 1963. He ascended to the position of managing director in 1969, steering the company’s strategic direction towards retail trade expansion. Notable milestones include the acquisition of The Great Atlantic & Pacific Tea Company in 1979, which cemented Tengelmann’s international presence.

Karl-Erivan Haub Net Worth

At the time of his passing in March 2018, Karl-Erivan Haub left behind a significant net worth of $6.4 billion. However, recent developments have sparked intrigue, with reports surfacing of his alleged reappearance in Moscow after being declared legally dead in 2021. The circumstances surrounding his net worth remain uncertain amidst this perplexing saga.

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Karl-Erivan Haub Age

Born on September 29, 1932, Haub would have been 91 years old in 2024 if he had not been declared legally deceased in 2021.

Karl-Erivan Haub Family: Wife and Children

Haub was married to Helga Otto in 1958, and together they had three sons: Karl-Erivan, Georg, and Christian W.E. Haub. His dedication to family and philanthropy underscored his personal and professional endeavors, leaving a lasting legacy beyond the business realm.

Karl-Erivan Haub Height and Weight

Details regarding Karl-Erivan Haub’s height and weight are not readily available.

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Also Read: Amanda Kloots Net Worth 2024: How much is the TV personality and dancer Worth?

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