You need to be prepared when asking for a loan. You must know the exact amount of money that you need, what your purpose is and how you will repay it. You have to show you are in good credit standing.
There are two basic kinds of loans, although terms vary by lender:
Short-term loan: maturity periods of up to one year, which include accounts receivable loans, working capital loans and lines of credit.
Long-term loan: maturities greater than a year and less than seven years. Equipment and real estate loans can have maturity up to 25 years. Major business expenses such as purchasing real estate and facilities, durable equipment, construction, vehicles, furniture and fixtures, etc. are a few purposes for long-term loans.
