Did you know that less than 50% of small businesses in the United States have their financial needs under control?
Many businesses are struggling to maintain business due to financial concerns and not having enough money saved.
If you are want to help your company financially, there are many types of loans and options to consider.
Continue reading to discover the types of small business loans that could improve your financial situation!
A business line of credit is one of the most common types of small business loans that people apply for.
A smart business owner will apply for a line of credit (LOC) when they need a small loan. Typically these loans range from 1,000 to $500,000, depending on the company. The money from this loan is released within two weeks and has a maturity date of 1 to 2 years.
Depending on your credit and business information, you can expect interest rates to be between 8 and 24%. The best part about this type of loan is that you can get access to the money as many times as you want since the credit is revolving.
The Small Business Administration (SBA) loan is another option to consider if you need serious help with financial backup.
An SBA loan is meant to help businesses that are struggling with funding and paying for resources to run their company. If you have a business that is dealing with disadvantages, this is a perfect loan to apply for.
If you are looking for SBA express loans, the short-term loan is the best option to consider.
The short-term loans that are given to businesses will allow you access to the money within 24 hours. Although the loans only go up to $500,000, they can make a difference when dealing with immediate issues. Most businesses pay off these loans within 3 years or less and the interest rates are quite low.
Business Term Loan
When it comes to business ownership, there are many financial responsibilities to take care of.
If you are starting a company and need to gain capital, hire staff, and purchase equipment, a business term loan is recommended. Business term loans are extremely reliable and can provide you with up to $2 million.
The money can be deposited into your business account within a matter of days and you will get up to 5 years to pay the loan off. Since these loans have fixed interest rates, you won’t need to worry about payments increasing over time.
Know the Types of Small Business Loans Available
There are many types of small business loans to consider if you are looking for financial assistance.
If you are a small business owner and have financial concerns, you can apply for short-term or SBA loans to help get you in a profitable margin. The application process doesn’t take long for these loans and the interest rates are quite reasonable.
Don’t be afraid to get a loan to help your company survive, especially if you are dealing with disadvantages.
Be sure to check out our blog for more articles about small business loans and how to improve your company’s finances!