Brush Stroke

Popular Options of Loans and Financing for Small Businesses

By: Mary Jones

Traveling knowledge

BUSINESS TERM LOAN

A term loan, often called an installment loan, is a traditional type of business loan in which the borrower receives a specific amount of money that is paid back on a set schedule

BUSINESS LINE OF CREDIT

A business line of credit is very similar to a credit card. When approved, the business is given a maximum credit limit. You can borrow from the fund at any time as long as they don’t spend over the borrowing limit.

SMALL BUSINESS ADMINISTRATION (SBA) LOAN

Small Business Administration is a federal organization that serves as a resource for small business owners. One of the biggest benefits offered by the SBA is its low-cost, government-backed loan programs.

SHORT-TERM BUSINESS LOAN

Short-term business loans are typically considered low risk because they carry short term lengths. Because they are low-risk, they are a good option for new businesses and borrowers with poor credit scores

EQUIPMENT LOAN

The business will immediately get to use the equipment but won’t have to pay the full cost up front. Instead, the business will be able to pay smaller payments on a regular basis

INVOICE FINANCING

Borrowers can sell their unpaid invoices or use them as collateral in exchange for cash up-front. Because invoice financing is reliant on your customers paying

MERCHANT CASH ADVANCE

After receiving a merchant cash advance, daily payments are withdrawn by the lender from the business’ bank account. Payment is often based on a percentage of sales

PERSONAL LOAN FOR BUSINESS

personal loan for business is an option for businesses and entrepreneurs that do not have the credit score or business documentation required to qualify for a business loan

MICRO LOAN

A microloan is typically defined as a loan of $50,000 or less. Because these are smaller loans, they are best for smaller businesses, sole proprietors, and startups that have lower capital requirements

CROWDFUNDING

small business or startup uses an online platform to raise money from a group of investors. The small business pitches its idea to potential investors, and the investors donate money if the idea appeals to them.

COMMERCIAL REAL ESTATE LOAN

Commercial real estate loans can help you purchase or upgrade commercial real estate. These funds can be used to purchase an existing building or land

More Details

For full details about this information please visit our website click on given link below.