{"id":5849,"date":"2020-02-19T11:19:10","date_gmt":"2020-02-19T16:19:10","guid":{"rendered":"http:\/\/www.atyourbusiness.com\/blog\/?p=5849"},"modified":"2020-02-19T11:19:52","modified_gmt":"2020-02-19T16:19:52","slug":"you-have-choices-a-guide-to-the-types-of-business-loans-you-can-apply-for","status":"publish","type":"post","link":"https:\/\/www.atyourbusiness.com\/blog\/you-have-choices-a-guide-to-the-types-of-business-loans-you-can-apply-for\/","title":{"rendered":"You Have Choices: A Guide to the Types of Business Loans You Can Apply For"},"content":{"rendered":"\n

On average, you can start a small business for $3,000<\/a> or less. While that low number may serve as a confidence booster for some, for others, even coming up with $3,000 to get a venture off the ground sounds like a challenge.<\/p>\n\n\n\n

Fortunately, no matter how much your business costs to start, there is probably a type of business loans option that you can lean on to get the cash you need. Below, we spotlight five popular loan selections.<\/p>\n\n\n\n\n\n

1. SBA Loans<\/h2>\n\n\n\n

It seems that every type of business loans conversation ends up looping back around to SBA loans. To be clear, an SBA loan isn’t a singular loan product but any number of third party loans that are facilitated through the SBA.<\/p>\n\n\n\n

The SBA (small business administration) is a federal agency that works with various private lenders to offer business owners money with fair terms. These loans are often attainable even if you have sub-par credit.<\/p>\n\n\n\n

You can learn about SBA loans here<\/a>.<\/p>\n\n\n\n

2. Credit Cards<\/h2>\n\n\n\n

You’re likely familiar with credit cards for personal use. What you may not know is that there is a whole line of credit cards offered that are targeted specifically at businesses.<\/p>\n\n\n\n

To get a business credit card, you’ll likely need to supply your creditor with an EIN (employee identification number). You can get one of those free of charge from the IRS<\/a>.<\/p>\n\n\n\n

Business credit cards come with various cash-back bonuses and other helpful options that can help new companies that need consistent access to cash.<\/p>\n\n\n\n

3. Factoring<\/h2>\n\n\n\n

As you start making sales, you may run into the dreaded “net-90” invoice. Invoices that carry net-90 terms enable buyers to wait three months before paying what they owe.<\/p>\n\n\n\n

Those terms can put cash-poor companies out of business.<\/p>\n\n\n\n

Fortunately, factoring services allow you to take out loans against unpaid invoices. These services will let you borrow against roughly 70% to 90% or your invoices’ total amount and will charge a 1% to 3% fee.<\/p>\n\n\n\n

4. Secured Loans<\/h2>\n\n\n\n

When you type “quick loans near me<\/a>” into Google and are bombarded by tons of lenders that advertise easy access to money no matter how bad your credit is, these loans are generally going to ask for a measure of security. That security usually comes in the way of a piece of property\/commercial equipment (a semi-truck, for example).<\/p>\n\n\n\n

Secured loans are great for companies that have money tied up in property but don’t have cash. The downside is that if you don’t meet your secured loan’s obligations, lenders have the right to collect what you offered as collateral.<\/p>\n\n\n\n

5. Balloon Loans<\/h2>\n\n\n\n

Balloon loans are used by some businesses that need access to large amounts of cash for a set period. With a balloon loan, you only pay interest on borrowed money, not principal. The entirety of your principal is due in one “balloon payment” as soon as your loan expires.<\/p>\n\n\n\n

For example, if you took out a $100,000 loan on a 12-month term, rather than paying back that money in equal pieces each month, you’d only pay back interest during months 1 through 11 and then pay back the full $100,000 on month 12.<\/p>\n\n\n\n

Carefully Study Which Type of Business Loans Make the Most Sense for Your Business<\/h2>\n\n\n\n

It can be tempting to take lenders up on offers when they cold call asking if you’d like funding. Always be cautious when borrowing, though, because not every type of business loans option you’re presented with is going to carry terms that jive with your needs.<\/p>\n\n\n\n

If you’re still unsure which loan might be best for you and would like more information on lending products, consider browsing more of the financial content on our blog.<\/p>\n","protected":false},"excerpt":{"rendered":"

On average, you can start a small business for $3,000 or less. While that low number may serve as a confidence booster for some, for others, even coming up with $3,000 to get a venture off the ground sounds like a challenge. Fortunately, no matter how much your business costs to start, there is probably a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"_links":{"self":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/5849"}],"collection":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/comments?post=5849"}],"version-history":[{"count":1,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/5849\/revisions"}],"predecessor-version":[{"id":5851,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/5849\/revisions\/5851"}],"wp:attachment":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/media?parent=5849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/categories?post=5849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/tags?post=5849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}