Competitive Business Loans and Access to Funding

Business term loans are set amounts of cash to be paid back over a predetermined period of time.

Pros: Business term loans tend to be easier to secure than traditional loans and can lead to faster funding.

Cons: Payments for business term loans can be more frequent, and recurring debt is possible by refinancing or rolling over debt into a new term loan.

SBA loans are loans disbursed by the Small Business Association’s network of approved lenders.

Pros: Businesses who don’t qualify for traditional loans may qualify for an SBA loan and there is a cap on interest rates.

Cons: SBA loans can take months to get approved, require a down payment and good credit, and sometimes require personal collateral.

Short term loans are term loans paid back over a shorter period of time.

Pros: Short term loans can be applied for online giving you faster access to funding, and tend to have more lenient criteria.

Cons: Short term loans typically have high interest rates and frequent payments (weekly or even daily payments are common).

Equipment loans are specific loans meant to purchase equipment and assets necessary for operating your business.

Pros: Equipment loans allow for tax breaks on business equipment, flexible payment plans, and help secure equipment quickly.

Cons: Equipment loans are specified for equipment purchases only, financed equipment will cost more in the long run, and you must pay for any maintenance costs of the equipment.

Invoice Financing allows businesses to get cash advances on receivable invoices in exchange for a fee.

Pros: Invoice financing can sustain businesses through long cycles without payment and allow for more cash on hand.

Cons: Invoice financing can cost more than loans or other financing options, and are subject to hefty fees.

A Merchant Cash Advance, similar to Invoice Financing, allows businesses to borrow against future credit card receipts for immediate access to capital.

Pros: MCA’s provide immediate funding, no fixed monthly installments, and no collateral is required.

Cons: MCA’s have some of the highest interest rates, and lenders can withdraw from your account on a daily basis.

Personal loans are loans individuals take out and use for business expenses.

Pros: Personal loans are easier to acquire than standard business loans, allow for quick access to funds, and no collateral is necessary.

Cons: Your personal credit can be affected, borrowing amounts are much lower, and there are high interest rates.

Microloans are loans for small amounts of money, to be paid back in a short period of time.

Pros: Microloans give near instant approval, are easy to obtain, and don’t require a credit history check.

Cons: Microloans are only eligible for small amounts of money, have high interest rates, and have short repayment periods.

Commercial real estate loans are loans specifically used for paying mortgages on income-producing commercial properties, such as retail storefronts or office buildings.

Pros: Commercial real estate loans lead to fast closing times on properties and have easier application processes, short terms, and don’t require a bank.

Cons: Commercial real estate loans can only be used for real estate, requires high down payment, they have high interest rates, and are not given to new investors.

Business Credit Cards are credit cards specifically designed for business expenses.

Pros: Business credit cards are easy to qualify for, have convenient access to funds, may offer rewards, and can be used to build business credit.

Cons: Business credit cards require good personal credit history, have high interest rates, and business credit cards do not offer the same purchase protection as personal credit cards do.