There are several places you can turn when your business is in need of money. Since this decision will impact your company in many ways, it’s critical to take your time.

Some business owners make the mistake of borrowing money from a loan shark or hard money lender. It sounds like a reasonable idea upfront, until you find that the terms and conditions are slanted heavily against you.

Rather than make a poor decision that could affect your business for many years to come, turn your attention to the benefits of a term loan. There are hundreds of online and brick and mortar financial institutions that offer these loans, among many other types.

Here are some of the most appealing benefits of a term loan:

• Competitive, fixed interest rate: When compared to borrowing from a loan shark, you’ll find that your rate is much lower. This allows you to save hundreds or maybe even thousands of dollars. Furthermore, with a fixed rate, there are no concerns about your payment changing from month to month.
• Variety of terms: Term loans typically range from 12 to 84 months, giving you the flexibility to choose the option that best suits your budget.
• Fast funding: If you supply everything the lender requires in a timely manner, you’re likely to receive a decision within 24 to 48 hours. If approved, you can sign the final documents and immediately get your hands on the money.
• Peace of mind: It’s stressful to enter an agreement with a loan shark, as you never know how they’ll take advantage of you. Not to mention the fact that you put yourself in harm’s way should you be unable to repay the money. Conversely, you’ll have peace of mind when you borrow from a reputable lender.

These are just a few of the many benefits of a term loan for your business. If these pique your interest, contact three to five lenders to learn more about what’s available to a borrower in your position.

No matter how hard you try, you could find yourself dealing with a bad loan at some point. Maybe you’re in this position because you were in a hurry for money. Or maybe you’re in this position because you didn’t fully understand the terms and conditions of the loan.

Understanding the potential impact of a bad loan will help push you toward an informed decision. Here are three things you should concern yourself with:

• The high cost: For example, if you opt for a payday loan, the high cost of borrowing is likely to bite you at some point. These loans are known for extremely high interest rates, thus taking money right out of your pocket.
• Increased stress level: It’s bad enough when you’re facing an uphill financial battle. If you add a bad loan into the equation, your stress level will reach new heights. Unfortunately, things often remain this way until you’re able to pay back the loan.
• A more complex financial situation: When attempting to overcome financial difficulties, it’s important to simplify things as much as possible. A bad loan will do the exact opposite. It’ll complicate your finances, stress you out, and could even lead you to make more poor decisions.

If you’re currently dealing with the impact of a bad loan, make a list of the many ways to save yourself. It may not be easy, but there’s a strategy you can employ to reach your goals.

Conversely, if you’re concerned about making a mistake when taking out a loan, compare the pros and cons of each product. For example, a close look at the drawbacks of a payday loan will soon have you considering a more reputable financial tool.

Don’t let a bad loan impact your finances and personal life. Even if you’ve made a mistake, there are changes you can make to get back on track.

It doesn’t matter if you’re applying for your first credit card or have many years of experience using this financial tool, it’s critical to take the necessary steps to protect yourself.

The best thing you can do is review the terms and conditions of a credit card before completing the application. This will give you a clear idea of what you’re getting, what you’re not getting, the benefits, and the potential drawbacks.

Here are some of the more important questions to address:

• What is the interest rate? The answer to this question will give you a clear idea of if the credit card issuer is trying to take advantage of you. Although there are regulations in place to keep rates in check, it doesn’t necessarily mean you’re getting what you deserve.
• Can your interest rate change? Don’t assume that your credit card has a fixed rate attached to it. If it’s variable, you may find it changing more often than you would like. Also, there may be reasons why your issuer can increase your rate, such as if you miss a payment.
• Do you understand the fee schedule? There are fees attached to every credit card, so make sure you know when these come into play. For example, a late fee is charged if you fail to make the minimum payment by the due date. Foreign transaction fees are charged if you use your credit card out of the country. When you understand the potential fees, it’s easier to avoid paying them.

Unlike a loan shark or payday lender, credit card companies must comply with many federal regulations. While this protects you to a certain degree, you could still find yourself stuck with a card that’s not in your best interest.

What process do you follow to review the terms of a credit card before applying? Would you add any other questions to the three above?

Are you facing financial trouble? Are you considering the many ways to obtain funds that will allow you to bridge the gap until things get better?

Many people make the mistake of looking for “fast” money, such as through a payday loan or a relationship with a loan shark. While fast funding is a good thing when you’re facing financial difficulties, you don’t necessarily want to go down this path. Here’s why: you may enter a cycle that’s difficult to break, thus costing yourself more money over the long run.

A personal loan may be the perfect solution for a variety of reasons, including the following:

• No collateral: As an unsecured loan, there is no collateral associated with a personal loan. Instead, the final decision is based primarily on your credit history and credit score. If you have a good, very good, or excellent credit score your chance of approval is much greater.
• Use the money however you best see fit: Some people use a personal loan to consolidate their debt, such as credit cards and medical bills. Others use the funds to pay for a necessary home improvement project, such as a new roof. As long as it’s legal, you can use the funds from a personal loan however you want.
• Competitive interest rate: This is based largely on your credit score, but a competitive interest rate is one of the primary advantages of a personal loan, especially when compared to a payday loan and similar products. A lower interest rate results in a lower monthly payment, as well as less money out of your pocket over the life of your loan.

Adding to the above, it’s nice to know that you can apply for a personal loan online. This goes along with the ability to consult with your local bank about your options.

Don’t make the rash decision to borrow from a loan shark or obtain a payday loan. If you take the time to consider your options, you may soon realize that a personal loan is what you’ve been searching for.

Do you have any past experience with a personal loan? Were you happy with the terms and conditions? Are you interested in this type of loan again?