Sometimes you hit a wall on what you can accomplish on your own. We are not finance experts, and we're not going to give you financial advice, but we can point you towards some resources. One of those resources may be a loan.
There are many types of small business loans out there, and you need to know which one works best for your business. This post will give you some options.
Keep reading to learn about four small business loans you can apply for so you can push your company forward.
1. Business Line of Credit
If you are looking for flexibility, then a line of credit may be right up your alley.
It works similar to a cash advance on a credit card. It's a revolving loan.
The maximum amount of money you can withdraw will be based on your credit limit. Instead of receiving a lump sum of money, you draw down the amount you need.
After you get your money, you pay the borrowed amount down based on the repayment terms of your credit agreement.
2. Term Loan
A term loan is the conventional business loan you would expect from lenders. They offer you an upfront lump sum, and you pay it off over time, with interest.
If you have good credit and need a lot of funding, term loans are an excellent choice. You can borrow a lot and get reasonable terms with good credit and collateral.
3. SBA Loan
SBA loans are similar to term loans, but there are several differences you should know.
Like a term loan, you can borrow a large amount of cash and get it in a lump sum. But unlike term loans, SBA loans are backed by the government.
If you can't get a term loan, then an SBA loan may be possible for you.
The terms you get for your loan will depend on how you need to use the money. You can expect more extended repayment periods too.
4. Angel Investors
If you are looking for more than just money, then an angel investor might be for you.
Angel investing doesn't work like traditional loans.
The first difference is that you are taking money from an individual who is providing their own funds. You aren't receiving money from banks or firms.
These individuals typically require equity in your company for the investment. For this, you get the money you need and an advisor who is invested in the success of your company.
Angel investors usually have experience in the industry they are investing in. The contacts and knowledge they have can help you make your company a success.
Types of Small Business Loans: Final Thoughts
There are more types of small business loans out there, so don't stop here. You need to make the right choice, so you get the loan you need to help move your business to the next level.
You don't have to stick with the typical small business loans. If you have an idea, then reach out to an angel investment firm to pitch them your idea.
Click here to see what we have to offer and see if your team is a good fit for us!