Business Loans: Top 5
Which one is right for you?
Securing a business loan can be an important first step in starting a new business or expanding an established one. There are countless types of business loans – from small business loans to those in the tens of millions of dollars. Here are five of the most common types of business loans available:
The most common type of business loan, a term loan gives you a lump sum of cash up front that you can use as you like, paying back over time with interest.
Small Business Administration (SBA) Loans
Backed by the Small Business Administration (SBA), these highly desirable loans are issued by banks and other lenders. With some of the lowest rates on the market and longest repayment terms, the downside is that they can be difficult to qualify for and have a longer application process.
Business Lines of Credit
A business line of credit works similarly to a credit card, in that you have a set limit you can borrow and can draw from it in the needed amount as needed – paying interest on only what you actually take out.
Equipment loans are designed to help you acquire tangible assets needed to run your business – machinery, vehicles, computers, furniture, and more. Should you default on the loan, the equipment will be used as collateral.
Commercial Real Estate Loans
A commercial real estate loan, or commercial mortgage, works similarly to a home loan or mortgage. It can help you finance commercial property, including retail, office, or warehouse space.
A trusted local banker or loan officer is a great resource for exploring the business loan options available to you, and determining the best product for your goals.