An Overview of the Different Business Loan Options

At some point in time, you may need to obtain a loan for your business. The good news is that an array of options is available for such loans. You can choose the one that best fits your current needs and your situation. The following are some common types of business loans for you to consider.

Merchant Cash Advances

Merchant cash advances are an excellent option if you receive a large amount of credit card transactions for your business. Merchant cash advances are based on the amount of credit card transactions and income you have come into your business and not necessarily your credit score. The lenders usually base their approvals and the loan amount on what you can show them with your sales receipts. This might be the best option for you if your credit score is not as wonderful as you’d like it to be, or you haven’t been in business for very long. 

SBA Loans

SBA loans are available through providers who have connections with the Small Business Administration. The SBA offers a wealth of loans for business people who need them. They have a group of loans classified as 7(a) loans that have a variety of terms attached to them. The one you choose will depend on your situation and the amount of money you need for your purpose. Some loans have a turnaround time of only a few days, while other loans can take up to two weeks to receive. You can contact a provider that has a relationship with the SBA to find out more. 

Equipment Loans

Equipment loans are for the sole purpose of purchasing equipment. You might need this type of loan if you own a restaurant, construction company, manufacturing plant, or something similar. You will most likely not have to put forth collateral for this type of advance because the lender will use your equipment as that collateral. 

Business Lines of Credit

Business lines of credit may interest you as well. They are not the same as typical loans. They are lines of credit that work sort of like a credit card. The lender will give you a certain limit, and you can use whatever you need to use when the need arises. You pay back this type of advance the same way you would pay other types of advances, which are usually in monthly installments. 

Microloans

Microloans are loans for typically small types of loans. You could apply for a microloan if you need an advance for your business in an amount like $25,000 or less. Some microloan lenders offer more than $25,000, but they generally stay in that neighborhood. You’ll need to have proof of income, and you’ll have to complete an application to receive this type of advance. 

Personal Loans

You don’t necessarily have to apply for a business loan to get the money that you can use for business ventures. An emergency loan will work just as well. Personal loan lenders might be more lenient on their offerings and less stringent in their approval processes. Bear in mind that they may extend lower loan offers, however. They can work well for you if you only need a small amount, though. You can find such a lender by conducting a search for “cash loans near me.” You can also connect with a reputable network that can connect you to various lenders. That’s where we come in. 

Auto loans

Commercial auto loans are necessary if you have a business that has at least one vehicle. If you have ever purchased a car before, this loan will likely be easy to qualify for. You might prefer to work with a lender who specializes in small-business financing. While banks and credit unions are an option, you should also consider financing through the manufacturer or dealer directly. Fleet financing companies offer only business vehicle loans, and they are current on all available programs.

Online loans

What is the difference between online loans and traditional loans? The most important difference between online loans and traditional loans is the fact that much of the application process can be completed online, often very quickly. Most lenders will not require that you visit them in person to complete paperwork or verify your identity.

Although online loans can vary in their scope, price and purpose, it is generally accepted that they are faster and more efficient than traditional loan applications. Many lenders will provide a pre-approval, which can tell you if your chances of being approved, the amount and costs of your loan, before you apply. Online loans are more flexible than bank loans and are generally more expensive. However, costs can vary so this option is worth considering if you require cash fast.

Cash flow loans

Cash flow loans are a good option if you don’t have any assets but a bank requires collateral in order to obtain a loan. As a way to establish risk, these loans use the expected amount of cash that you will receive in sales or liquidated assets. Based on cash flow alone, the lender can determine if you are eligible for a loan amount. These rates and costs can vary but are typically limited to companies with millions of dollars in revenues. Startups are not eligible for them.

Crowdfunding

Crowdfunding may be an option if you have friends, family, or willing fans or customers. You can raise funds online from people who are interested in supporting your small business. They can either be a lender or investor or a reward. Startups can access it. Although crowdfunding is a great way to start a business, there are many competitors on the most popular crowdfunding platforms. A great marketing campaign is essential. Remember that only a few projects reach their funding goals.

Start Your Journey Toward Getting an Amazing Business Loan

Now you know a few of the types of loans you can get for your business venture. You can go ahead and start applying for some that seem like they will suit your needs. We have been in business for years, helping debtors and businesses to take charge of their finances. We want you to be able to achieve all of your goals. Therefore, you can contact us if you need to find business term loan lenders for your venture. We are not a lending institution. However, we’ve had connections with some of the top and most trustworthy lenders ever since our inception. You can feel confident contacting us to find a reputable lender for your needs. We’re always here for you and ready to help.