Are you looking for a quick funding solution for your business? Do you want a loan to invest capital into your company in order to grow? If yes, then a small business loan will be ideal for you.
Are you confused as to what type of small business loans are out there and what particular loan products you can avail? If yes, then don’t be because we have got you covered.
Following are the most common type of small business loans that will definitely be available near you:
A business line of credit allows you to access a given amount of capital whenever you need it. The best part is that the money is always available and you have to pay interest only on the amount that you withdraw. It pretty much acts as a credit card for your business. You can get your business line of credit approved within one working day and get access to anywhere from $50k to $500000k.
The Small Business Administration is a government agency that helps small businesses find financing solution. For whatever purpose you need money for your business, you can get it through SBA given that you qualify. At favorable interest rates and repayment period, you can get anywhere from $5k to $5 million in 2-4 weeks.
The growing Peer-to-Peer (P2P) loan market means that there are more than sufficient funds out there and you can cut out the middlemen by directly dealing with the loan providers. The application process is simple, the requirements are not stringent, and you can get quick access to finances. However, the catch is that the interest rates are somewhat high and the amount that you can borrow is limited.
If you require a short-term loan of up to $50k at a low-interest rate, then microloans might just be perfect for you. Since, microloans providers are usually non-profits, targeting women and disadvantaged communities, you can get a very good deal.
If your credit history is not up to the mark but the cash flow of your business is strong enough then you can get a short term business loan. With minimal hassle, you can get lump-sum funds anywhere from $2.5k to $250k. However, the interest rate will be around 10% and the loan term will be smaller, mostly 2 years.
Your credit history, the loan amount you need, and the purpose as well as the time period for which you need the funds for can help you figure out the type of loan that is the right fit for you. Once you know the type of loan that you need, all you need to do is reach out to the relevant loan providers and get access to the funds.
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