Given today’s volatile fiscal situations, more small business owners have embarked on taking loans in order to revive their rapidly disintegrating businesses. And yes, these small business loans: 101 have seen these businesses register stellar performances in a very short span. While that is happening, some other small businesses have continued to drown in a storm of financial constraints due to their lack of information on the types of small business loans available for them. I have, however, delved into the issue and compiled a list of at least seven types of small business loans available in the market.
1. Bank loans.
In case you qualify for it, this offers the lowest interest rates. However, there is that aspect of an administrative bottleneck when it comes to whoever can access bank loans. These are also the hardest option to secure financing, unless you have adequate collateral or an incredible credit history you may not even qualify.
2. SBA loans for small businesses.
This is yet another option available for small businesses in need of a loan. With an interest rate of like 7%, I would say that it is quite affordable. However, just like bank loans, they have numerous restrictions and mountains of paperwork to be done. However, if you qualify for it, you could take a long-term loan of up to 7 years. Here is a video on how you qualify for an SBA loan.
3. Working capital loans.
This is yet another option available for small businesses looking for quick loans. However, the rates vary depending on various factors. Depending on the stability of your business, the lenders vary their interest rates to suite the risks they have to bear for choosing to finance your business. However, it is a quick option.
4. Start-up business loans.
If you are starting a business and have the assets as well as an excellent credit, this is an option you could use. Start-up business loans are, however, not the easiest to obtain considering the fact that you actually do not have a business which can be used for assessment purposes.
5. Merchant cash advances.
As a last option, just in case you run out of options, you can take up merchant cash advances to revive your business. However, these advances have extremely high-interest rates which make them quite unpopular.
6. Equipment leaseback.
You could also use your assets to revive your finances. This is called equipment leaseback where you sell the equipment while still using them.
In a jiffy, if your business is stuck between a rock and a hard place, worry not. All you need to do is make use of any of these options and take your business back on track.