Where can I get loan for small business?

Where can I get loan for small business: SBA Loans,Business Term Loans,Business Lines of Credit,Invoice Financing,Equipment Financing,Short-Term Business Loans.

Where can I get loan for small business: SBA Loans

SBA loans are business loans guaranteed by the Small Business Administration. With their multiple SBA funding programs, this government agency provides SBA loan guarantees of up to 85% of the loan amount provided through an SBA-approved lender—typically banks. The three main SBA loan programs let you borrow money for nearly any business purpose—including working capital, purchasing inventory or equipment, refinancing other debts, or buying real estate—through these SBA-guaranteed loans.

Where can I get loan for small business: Business Term Loans

Term loans are the standard commercial loan, often used to pay for a major investment in the business or an acquisition. The loans often have fixed interest rates, with monthly or quarterly repayment schedules and a set maturity date.

Bankers tend to classify term loans into two categories: intermediate- and long-term loans.

Intermediate-term loans usually run less than three years, and are generally repaid in monthly installments (sometimes with balloon payments) from a business’s cash flow.

Long-term loans can run for as long as 10 or 20 years and include additional requirements such as collateral and limits on the amount of additional financial commitments the business may take on.

Where can I get loan for small business: Business Lines of Credit

A business line of credit is a type of small-business loan that provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit — say, $100,000 — and pay interest only on the portion of money that you borrow. You then draw and repay funds as you wish, as long as you don’t exceed your credit limit. A line of credit works similarly to a credit card.

Where can I get loan for small business: Invoice Financing

Invoice financing is a way for businesses to borrow money against the amounts due from customers. Invoice financing helps businesses improve cash flow, pay employees and suppliers, and reinvest in operations and growth earlier than they could if they had to wait until their customers paid their balances in full. Businesses pay a percentage of the invoice amount to the lender as a fee for borrowing the money. Invoice financing can solve problems associated with customers taking a long time to pay as well as difficulties obtaining other types of business credit.

Equipment Financing

Equipment financing is the use of a loan or lease to purchase or borrow hard assets for your business. This type of financing might be used to purchase or borrow any physical asset, such as a restaurant oven or a company car. … If you default on your loan or lease, the lender can repossess the asset.

Short Term Business Loans

A short term loan is a type of business capital loan that can provide your company with quick working capital. Like most other bank loans, you’ll receive a lump sum of cash upfront which is repaid to your short term lender over a set period of time. In addition to the principal amount you borrowed, your payments also include any lender fees and interest as part of the total cost of the loan. The right short term financing can make or break a company.

According to a study conducted by the National Small Business Association, 19% of small business owners cite lack of available capital as the biggest challenge in their future growth and 82% of businesses fail because of cash flow management issues.

A short term loan could help circumvent these issues before they become a real problem for your business.

Robin Bell

Leave a Reply

Your email address will not be published. Required fields are marked *