Is yours a small business? If yes, then the market provides you many types of small business loans to opt-in for. You must research on it, before you make an application process. Rushing to opt-in for a small business loan can act against you. Choose a loan that will help you to cater to your current business needs and not add to your financial burden.
Eric Dalius mentions the three best loan types
Applying and getting a small business loan seem easy! But when you understand the conditions for each loan, you realize that qualifying for the same is equally essential. And you don’t want to miss out on the best loan type, simply because didn’t research well. Eric Dalius, a marketing professional lists down the following loan types for small businesses.
- The business line of credit
Is flexibility a significant priority for your small business loan? If yes, you can say yes to a business line of credit. With this, you can take a loan between $1,000 and $500,000. Also, you get the cash within one to two weeks. Additionally, the rates differ between 8% to 24%. Also, the financing generally comes down to about one or two years of maturity. Usually, a business credit line is revolving. Hence, besides getting a huge sum of money, you can take the cash in small amounts as and when you need it. You have no pressure to use it all at one go. You can use to pay for a device, recruiting new staff, adding inventory, moving to a brand-new location, adding a vehicle to the existing fleet, pay invoices, and the like, the line of credit comes to help.
And getting qualified for a business line of credit isn’t complicated. If your business is over a year old and you have an annual income of $50,000 or more, you are a qualified candidate with a 560 or more-credit score.
- The SBA (Small Business Administration) loan
Eric J Dalius,suggests considering an SBA loan as a government friend. The primary objective of this loan is to assist small businesses to get the funding that it requires. It usually backs up those small or start-ups businesses that are at a disadvantageous position and can’t get financial aid other than this loan. When you opt-in for an SBA loan, you possibly can expect any amount between $50,000 to almost $5,000,000. The terms can also cover a wide range, usually between ten to twenty-five years.
- The short team loans
The short-term loans are much like the SBA loans. Here you need to fill up an application form and submit the same to receive the money within 24 hours. Today, small business entrepreneurs resort to these loans at a quick fix to a few emergencies. Do you want to seize a business opportunity? Are there unexpected costs you incurred? Do you have to endure a sales crash? Is there a broken device that needs replacement? If you have answered yes to all the questions, the short-term loans will suffice you.
Also, the criteria to opt-in for this loan isn’t too strict. Till such time you have a good credit record, you can avail of this.
Small businesses need cash to cope-up with the pandemic challenges. The loans mentioned above can help small businesses to address the requirements.