Page 197 - Winning The Credit Game Bundle (CK Patrick)

CHAPTER 9
BUSINESS LOANS

We’ve now seen how building business credit can create some
truly impressive financing options. But what about that often-
discussed holy grail of small business owners, the business loan?

KNOW YOUR LOAN OPTIONS

So far in this book, we have focused on what credit bureaus call
“revolving tradelines.” These are tradelines whose value turns
over, or “revolves” on a regular basis. Credit lines where you
make purchases on credit and then pay off those purchases on a
regular basis are revolving tradelines.
Loans and mortgages, on the other hand, are “installment
tradelines.” This refers to the fact that, instead of borrowing
money and paying it back in a revolving fashion, you borrow
one large amount of money and then pay it back in installments
over the course of months or years.
Successfully paying off a loan for years to come requires a
certain level of financial stability, foresight, and planning, which
is why installment tradelines like loans and mortgages are typi-
cally difficult to get approved for unless you already have spec-
tacular credit history and cash flow. This is also why most new
business owners who apply for a loan while their business is still

185