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Is a Long-Term Loan Better for Your Business?



Is a Long-Term Loan Better for Your Business

The average cost to start and operate a business in the U.S. for one year ranges from $30,000 to $40,000. However, that can go up to a few hundred thousand, even millions, depending on the industry.

Those figures may have made you wonder if you could afford to start or maintain a business. The good news is that you can, with the help of a long-term loan.

To that end, we created this guide on when long-term loans make more sense than short-term, quick cash loans. So keep reading to discover when the former is a better, more practical choice.

You Want Lower Monthly Loan Payments

The “term” of a term loan dictates the number of months you have to repay what you borrow, plus interest and other fees. Therefore, your monthly payment depends on the loan’s total cost and term. In most cases, the longer the term or repayment period of a loan, the lower the required monthly payment.

So, a long-term loan may make more sense if you need a loan requiring lower monthly payments.

For example, suppose you need a $35,000 loan but can only afford to pay $1,000 toward it every month. Let’s also say you can apply for a loan with an annual interest rate of 8% and terms of 1 to 4 years.

If you opt for a 1-year term, your total loan cost will be $37,800, provided the lender won’t impose other fees. That will also bring your monthly payment to $3,150, which is way above your budget.

If you go with the longer 4-year term, your loan will cost $46,200. However, since you have 48 months to repay the loan, your monthly payment will only be $962.50. Since that’s within your budget, it may make for a more practical choice than the shorter 1-year term loan.

You Need a Large Loan

A car purchase is an example of a significant expense for which you may need a long-term small business loan. So you know, the average transaction price of new vehicles in the U.S. in June 2022 reached $48,083. On top of that is the cost of commercial auto insurance, which can be in the thousands of dollars.

Long-term business loans may make more sense than short-term loans for such expenses.

One reason is that lenders are often more likely to issue heftier amounts in exchange for a longer term. After all, they’re taking on a more significant risk by lending more money.

To compensate for that, they want longer terms, which come with more interest payments. Therefore, they can increase their profits, making them more inclined to approve applications. As a result, you may also find it easier to qualify for a heftier amount if you opt for a longer-term loan.

Borrow More With a Long-Term Loan

And there you have it, your guide on when a long-term loan is better for your business. Now you know it’s better than a short-term loan if you want lower monthly payments or need a heftier amount.

On the other hand, it may be best to stick to a short-term one if you only need to borrow a small amount. Just be sure you can pay it back in full and on time.

Did you find this article informative? We have other guides to share, so browse more of our blog now!


The Complete Guide to Choosing a Carpet Cleaner: Everything to Know



The Complete Guide to Choosing a Carpet Cleaner: Everything to Know

Did you know that the global carpet industry will be worth more than $73 billion within the next few years?

If your home or business has carpet, then it’s important to get it cleaned on a regular basis. Carpet cleaning will not only make your carpet look beautiful, but it can also improve your air quality, extend your carpet’s lifespan, and make a good impression on guests or customers.

Choosing a carpet cleaner can seem like an intimidating task, but the process can be simple. Do you need help narrowing down your options for carpet cleaners? Keep reading out guide for the most helpful steps.

Understand Their Cleaning Methods

Every carpet cleaning business has its own methods when it comes to getting the job done. Some businesses even offer several different services so they can help even more customers. Take some time to learn about these methods and carpet cleaning equipment so you can find a company that meets your needs.

It’s helpful to assess your own carpet so you can provide each business with this information and hear their personalized treatment plan. From green cleaning products to penetrating thicker rugs and beyond, you deserve to get the best service.

Compare Each Carpet Cleaner’s Cost

Comparing carpet cleaning costs is always a smart move to make because this effort could save you lots of money. This is especially true if you plan on getting your carpet cleaned on a regular basis. Finding a carpet cleaning company that offers fair rates will prevent you from having to hire a bunch of new businesses each time.

Looking at a few companies’ prices will help you determine what’s reasonable. If anyone is charging too much or too little, then you may want to steer clear.

Check Out Their Online Reviews

Reading online reviews is a crucial step to take during your search for the best carpet cleaner. The reason why is that you can learn so much from other people’s experiences in your community. If other people don’t recommend a certain company, then you’ll know who to cross off your list.

To make this step faster, you can set a filter on Google to only show you businesses that have earned a high star rating. This means that you can focus on reading the reviews of the carpet cleaning companies that show the most promise.

Ask Others for Recommendations

Since carpet cleaning is such a vital task for businesses and homeowners, chances are high that you know others who can point you in the right direction. Don’t feel shy about asking others if they’ve ever hired a carpet cleaner in your area and if they have any recommendations.

It’s reassuring to know that somebody you trust has had positive experiences working with a particular carpet cleaning business. This can make it less intimidating to invite strangers into your home or workplace.

Research Their Carpet Cleaning Experience

Hiring any business for the first time isn’t as intimidating if you know that they’re experts in the industry. You can build enough confidence to make a decision by researching each potential carpet cleaner’s experience. This information should be transparent on their business website.

If you know that a carpet cleaner has been working for many years, then you can relax because they’ve provided great service to hundreds of satisfied customers.

Make Sure Your Schedule Is Accommodated

Even though technology has evolved to expedite deep carpet cleanings, it’s still inconvenient to leave a room for an extended period of time to let the professionals work. With this in mind, you should think of a time when you can leave that space without disrupting your normal schedule too much.

Any business should work hard to accommodate its customers. If you’re speaking with a carpet cleaner who won’t prioritize your schedule, you can find somebody else who will.

Verify That They’re Licensed, Insured, and Bonded

Before a legal carpet cleaning business can enter your home or business, they need to obtain a license and government bond. This proves that they’re qualified for the job.

You should also ask about their insurance to protect yourself and your space. If an accident occurs while the carpet gets cleaned, you won’t be liable.

See If They Offer a Customer Guarantee

The main goal is to hire a carpet cleaner who will provide incredible services during their first visit. You should be happy with the final results. However, it’s always nice to know that a business will right any wrongs if you’re not completely satisfied with their services.

It never hurts to ask if a carpet cleaner offers a customer guarantee. Companies that do this are confident that their services are superb.

Hunt for Special Promotions

Many businesses create all kinds of cool promotions to stand apart from their competition and entice new customers to try their goods or services. The carpet cleaning industry is no different.

It’s always worth investing a little bit of time to hunt for a good deal. You’ll be even happier with the final results when you know that you saved extra money.

Did You Enjoy This Guide on Choosing a Carpet Cleaner?

Choosing a carpet cleaner for your business or home doesn’t have to be a stressful ordeal. When you follow this advice, you can ensure that you’re working with the best carpet cleaning company in your area. Once you see the amazing results, you’ll be so grateful for your prior research. Cleaning your carpet on a regular basis is just one of the many ways that you can make your space healthier and more vibrant. Do you want to get inspired by other great lifestyle articles? Take a look at our other blog posts and don’t forget to bookmark us.

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