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Loans, Advances - Coggle Diagram
Loans
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Advantages
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Purchase without liquidity, keep hold of company, bank loan is temporary, driver of growth etc
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Disadvantages
Tough to qualify, higher interest rates, strict repayment schedule
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Advances
Types
Short term loan
Merchant Cash advances, credit lines, payday loans
Advantages
Lower overall cost, quick funding time, easy to acquire
Disadvantages
Smaller amount, higher monthly payment, stronger impact on budget
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Advantages
Lowe bank charges, less legal formalities, to cater urgent needs
Disadvantages
shorter payment duration, paid in lump sum, secured by an asset
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