Small Business Loan Guide
With so many options to choose from, how do you decide which loan program is right for your small business? Our simple guide will help you decide which programs will be best for your business needs, just follow these steps to get started:
Browse the Most Popular Types of Small Business Loans
The U.S. Small Business Administration, or SBA, is a federal agency that provides loan guarantee programs to businesses that may not be able to get traditional bank loans and receive long-term, low interest rate funding. The SBA has a number of loan programs designed specifically for small and medium sized businesses, including microloans, SBA 7(a) loans, and CDC/504 loan program.
Business Line of Credit
With a business line of credit, lenders will establish a credit limit for a maximum amount of money they will lend you. You can draw as much as you need up to your limit and like a credit card; you pay interest only on the amount you borrow. Business Lines of Credit can help bridge the gap during seasonal lulls and other lean periods. A business line of credit can ensure that you always have the capital you need, when you need it.
Equipment financing allows you to borrow money to purchase necessary business equipment outright. The borrower will pay back the total amount borrowed, plus interest and fees over a pre arranged period of time.
Merchant Cash Advance
As the name implies, a merchant cash advance grants a lump-sum amount to the business owner and that amount is paid back (in addition to any fees charged) directly from a portion of future daily or weekly credit card sales.
Unsecured Business Loan
An unsecured business loan is a loan that does not require the borrower to pledge assets of the company to borrow funds. However, in most cases an unsecured loan requires a personal guarantee of repayment and will generally have a higher interest rate and fees.
Business Acquisition Loans
A business acquisition loan allows you to purchase an existing business, buy-out a partner or purchase/expand a franchise.