Owning or starting a business is difficult. One of the hardest parts is making decisions about financing. What type of financing do you need? Where can you find the best rates, or what is going to be the best financing option for your purpose?
There are many small business loan options, but these are four of the most common.
Traditional Business Loans
These are loans that lenders choose to make based on good credit, a solid business plan, and a belief that the business will thrive or is currently thriving. Funds are secured by collateral, and could include startup business loans or loans to existing small businesses. While rates and terms are variable based on many different factors, they are typically more favorable than other types of loans. These also include equipment loans and real estate financing.
Unsecured Business Loans
Similar to more traditional loans in almost all ways but one, these are loans made to startup or existing businesses that are not secured by collateral. As such, the credit requirements may be more strict, and the rates and terms will likely be much less favorable than if some sort of collateral where involved.
Small Business Line of Credit
This is a revolving credit line with a lender that can be accessed much the same as cash, and payments are made on a regular basis back to the line. Similar to credit cards, these typically have a lower, fixed interest rate, and the credit requirements are less flexible.
Small Business Credit Card
Another type of revolving credit line, a small business credit card may have a higher limit than a line of credit, but will likely also have a much higher interest rate. Some small business credit cards have rewards programs that can be useful and even profitable if managed properly.
Biz2Credit can help you find the best lenders that offer the financing options, whether one of these or others, that best fit your needs. To find out more and get started, visit Biz2Credit.com today.