The company provides the Encompass platform that allows professionals from every corner of the mortgage industry -- lenders, inspection professionals, assessment officials, etc. -- to gather and exchange services. Business has been very good over the past few years as homeowners rushed to refinance their loans at historically low rates. Continue Reading Below ADVERTISEMENT Indeed, higher rates probably will hurt Ellie Mae's business...over the short term. But the long-term view is completely different. Ellie Mae benefits from two of the strongest competitive advantages a company can have: high switching costs and the network effect. Image source: Getty Images. When any organization trains all of its employees to use a platform (like Encompass), they are loath to switch, as it takes time, money, and a ton of headaches to do so. That's what having "high switching costs" means. The network effect takes hold when each additional member of a network further incentivizes others to join.
Collateral for the loan is often accounts receivable or inventory. This facility is only provided to businesses that have secured firm contracts orders from their clients. Types of Bank-Offered Financing Now that your familiar with the most important aspects of bank loans, it's important to become familiar with the most common types of loans given by banks to start-up and emerging small businesses: working capital lines of credit for the ongoing cash needs of the business credit cards, a form of higher-interest, unsecured revolving credit short-term commercial loans for one to three years longer-term commercial loans generally secured by real estate or other major assets' equipment leasing for assets you don't want to purchase outright letters of credit for businesses engaged in international trade Working Lines need a business loan of Credit and Credit Cards A line of credit sets a maximum amount of funds available from the bank, to be used when needed, for the ongoing working capital or other cash needs of a business. All calculations were made as of September 30th, 2013. When many business owners think of business loans, they think of a traditional 5-10 year term loan from their local bank. When your business deals wit issues abroad, you'll likely need letters of credit. And if you have a blemish on your credit record or are falling behind in your APO obligations, it is not a problem.
Offering.aily, weekly payment options We are not a merchant cash advance company Ability to unlock equity in real estate Short-Term Business Loans and Debt Financing for Your Business for Short Term Working Capital Needs John Lund/Blend Images/Getty Images Both debt and equity financing have a rightful place in all but the smallest of businesses. This type of loan usually has a term of six-months, so will need to be repaid quickly. And, much like a mortgage, one loan option usually floats to the surface as the best fit for you and your situation. Annual Percentage Rate calculates the yearly interest percentage you pay based on your average line of credit balance. Assets commonly leased by small businesses include equipment, vehicles, real estate or facilities. If we focus on debt financing, most small businesses have traditionally got most of their business loans from commercial banks in the form of term loans .