Which loan is best for business?
This question is not as easy to answer as it may seem. Many factors determine which type of business loan will be the most advantageous for your company, and this article will help you learn more about them.
Here’s a look at some of the different lending options available to small businesses:
1) SBA Loans –
Secured or unsecured, 7(a) or (b), traditional loans or lines of credit, commercial real estate financing…there are so many types of SBA loans that it can easily get confusing. Fortunately, sba.gov has all the information you need in one place.
2) Factoring –
This type of financing allows businesses to sell their accounts receivable (invoices) to a third party, which then gives the business an immediate infusion of cash.
3) Merchant Cash Advance –
This is a type of short-term loan in which the lender agrees to advance a certain percentage of the future credit and debit card sales of the business.
4) Business Line of Credit –
A line of credit is similar to a personal line of credit in that it allows you. The key difference is that a business line of credit is specifically for businesses.
5) Term Loan –
A term loan is a lump sum that you borrow and then repay over a set period, often with interest.
6) Microloan –
This type of financing is a small loan, often extended by a nonprofit organization or the government. They are designed to help entrepreneurs start or expand an existing business.
7) Merchant Cash Advance vs Business Line of Credit –
These two options are very similar, but there are still some key differences between them. A merchant cash advance provides you with access to a percentage of future credit and debit card sales for a set term, whereas a line of credit allows you.