The purpose for your loan will determine the type of loan you are seeking. It is critical that your repayment schedule match the incoming cash flow so that your payments are on time.

1. Lines of credit are short term loans. The borrower is expected to bring the line of credit down to $0 once a year. Based on payment history, another line of credit is generally authorized.
2. Seasonal commercial loans are short term loans, and are generally required before a major holiday such as Christmas and Easter or an event such as a graduation, where excess inventory is required for the holiday buying spree. Payment is immediately made after the holiday or event is over.
3. Installment loans where the principal and interest are paid back on a monthly payment plan, and may be over several years.
4. Collateralized loans which are secured with assets such as property, stocks, bank account or equipment.
5. Credit card advances are similar to installment loans.
6. Balloon loans in which only the interest is paid until the full amount of the loan is due. The full amount could be due in 6 months to several years.