Fixed payment loans require that a business pay the same amount, each month, until the loan is paid off. The problem with this scheme is that many businesses are seasonal or cyclical – meaning that there are busy times and slow times. It can put incredible strain on a business when large loan payments are due during slow times, which may even mitigate the benefit of taking out the loan in the first place. A “no fixed payment” loan is just that – a loan that does not require the same payment each pay period. When applying for a business loan online, it is important to make the distinction between the two types. A no fixed payment loan has a payment that is tied to the actual sales of your business. So, during peak times when more money is flowing in, the full payment is assessed. When times are slower and less revenue is being generated, a lesser payment is required.

What Are The Types Of Businesses That Can Benefit From No Fixed Payments?

There are few businesses that are immune to the seasonal or cyclical habits of the buying public. With rare exception, most companies find that they have busy times of the year as well as slow times. Some examples of seasonal businesses are:

  • Landscaping and lawn care companies
  • Tax preparation firms
  • Recreational places like swimming pools and winter sports locales
  • Automotive dealerships
  • Retail Establishments

This is certainly a partial list of businesses that experience seasonal or cyclical sales patterns. A majority share of businesses could benefit from a sales based repayment plan for their loan.

How Does Operate – Fixed or No Fixed Payments?

For the most part, our loans are no fixed payment products – designed to work with the peaks and valleys of an individual business. When seeking an online business loan with no fixed payments, our site can link you to a wide assortment of lenders that are eager to help your cash flow situation. Whether looking for extra money for renovation, expansion, payroll, or even to pay taxes, our lenders are ready and willing to provide you with a no fixed payment loan today!