Unarguably, Business Loans have long been a feasible way of keeping your business operations going. It is used by many business owners for many reasons. Some of these reasons include; Short term boost to cash Flow, covering the cost of pricey equipment, and more. As you know, Many Businesses especially Small Business Owners, need the necessary capital to run their business. And so, applying for Small Business loans can help pursue the growth of your business. In addition, Small Business Loans could help cover a new employee’s payroll for a month or two while you wait for your clients to pay their bills.
On the interest today, there are several online lenders that offer Small Business owners Loans to finance their business. Also, they provide Small Business owners with a wide variety of financing options to enable them to purchase inventory and materials, refinance debt, and more. However, most Small Business Loans Lenders have different underwriting guidelines. But generally, all Small Business Loans Lenders consider similar factors such as Personal Credit Score, annual revenue, and time in business. Keep reading through this article, to discover some of these online business loan lenders.
Types Small Business Loans
Before applying for a Small Business Loan, you need to know that, there are several types of Small Business Loans. And they include; Term Loans, SBA Loans, Business Lines of Credit, Equipment Loans, Invoice Factoring, and Invoice Financing, Commercial Real Estate Loans, and more. Below is an overview of each of the earlier mentioned.
Term Loans
One of the most common types of Small Business Loans is Term Loans. Term Loans are lump sums of cash that you are required to repay over a fixed term. In simple terms, your monthly payment will be fixed and your interest will be included on top of the principal balance. You can use Term Loans for your everyday expenses and equipment.
SBA Loans
SBA otherwise known as Small Business Administration Loans are loans for business owners who need a low-cost government-backed loan. However, SBA loans take a long time due to the fact that you will need to go through a long application process which will result in a delay in receiving funds. If you are not in a hurry to get a small business loan and you need a small interest rate and fee. SBA loans is the right option for you
Business Lines of Credit
Business Lines of Credit is similar to Credit Card and it provides you access to flexible cash. Lenders of this type of loan give their customers access to a specific amount of credit. However, you don’t make a payment or get charged interest unless you ta into the funds. Business Lines of Credit loans are great options for people who are not sure of the exact amount of money they need. You only incur interest charges on the amount of money you withdraw.
Best Small Business Loans Lenders
If you are searching for some of the best SBA loans Lenders. You can apply for your Small Business Loans by visiting any of the below listed online Lenders;
- U.S Small Business Administration – Best of SBA Loans
- Credibility Capital – Best for Online term Loans
- Funding Circle – Best for Online term Loans
- Ondeck – Best for online term loans and Lines of Credit Up
- Fundbox – Best for Business lines of credit Up
- BlueVine- Best for invoice factoring and Business Lines of Credit Up
Can I Get A Business Loan For My Startup?
A startup’s business of less than a year cannot qualify for traditional Small Business Loans. However, Small Business Administration (SBA) has two loan programs that cater to startups businesses; SBA Microloans and SBA Community Advantage Loans. You can also consider getting SBA loans for your startup business from personal business loans, family and friends, small business grants, etc.
