Skip to content
Microfocus

Microfocus

Mad about business

Primary Menu Microfocus

Microfocus

  • Business Owner
  • Business Ideas
  • Business News
  • Business Law‎
  • Business
  • Real estate
  • About Us
    • Sitemap
    • Privacy Policy
    • Contact Us
    • Advertise Here
  • Business Owner

How to Choose the Right Type of Loan for Your Needs

Malik Runswick March 23, 2022

[ad_1]

How to Choose the Right Type of Loan for Your Needs

By Bonnie P

Posted on March 15, 2022

Funding your business with outside capital is often necessary to help it grow and realize its full potential. If you’re in the market for small business capital, you may quickly realize there are many funding methods available. Read our guide to learn what to look for when choosing the right financing method for your company.

 

Determine Your Funding Needs

There are a few different types of business financing available to suit your funding needs. One of the main differences is whether you need ongoing capital from some type of revolving credit, or a larger lump sum from a small business loan.

Additionally, the funding timeline varies widely by lender. Small business creditors like The Business Backer work hard to make the funding process as easy and efficient as possible. Other business lenders, including banks and credit unions, can take much longer to review applications and fund approved borrowers.

 

Assess the Available Business Funding Options

You may qualify for more than one type of loan to help fund your business. Some businesses choose to leverage more than one financing method to manage larger business expenses and pay for everyday costs. Some business funding methods include:

  • Term loan: Sometimes referred to as an installment loan, this type of business financing is issued in a lump sum and is repaid in installments over a specified time period. Term loans are available from business creditors like banks, credit unions and online lenders.
  • SBA loan: This financing option is backed by the U.S. Small Business Administration (SBA) and is available exclusively through SBA-approved lenders. Because of the federal guarantee, SBA loans generally have a lower interest rate than other business financing options. However, the qualification and application processes are considered more demanding and lengthier than other types of funding.
  • Line of credit: A business line of credit is a form of revolving credit that can be reused as the balance is repaid. With this type of financing, borrowers can access funds up to their credit limit at any time. Lines of credit are available from sources like banks and online lenders as well.
  • Invoice factoring: This funding option involves selling outstanding invoice(s) to a business creditor in order to access a cash advance. The lender is then responsible for collecting on the invoice (in addition to interest and/or fees applicable). Some online lenders offer invoice factoring options.
  • Business credit card: Another type of revolving business funding is a credit card. This funding option allows borrowers to make purchases on behalf of their business and repay at a later date. Like a line of credit, a business credit card provides ongoing capital access up to the credit limit. Business credit cards are available from banks, credit card issuers and similar creditors.

 

Research the Loan Qualifications

Finally, review the qualifications for your chosen business funding method(s). While actual lender qualifications will vary, they typically address the following criteria:

  • Annual revenue: Your revenue can impact your ability to repay the loan, so business lenders may require your company to meet a minimum annual revenue to qualify for credit.
  • Time in business: Lenders may also require your company to be in business for a minimum period of time to qualify for a loan.
  • Minimum credit scores: Business lenders may require you to have minimum business and personal credit scores in order to qualify for a loan.
  • Required documents: Applicants may need to submit certain business documents for a business loan, including Articles of Incorporation, business license(s), permits and similar credentials.

 

About Bonnie P

Bonnie is a Chicago transplant who’s committed to seeing the world on a dime. As an avid news junkie with a fascination with finance, she loves to help others do more with less.

[ad_2]

Source link

Tags: Amazon Business Login, Amazon Business Prime, Bank Of America Business Account, Best Business Schools, Business Attorney Near Me, Business Bank Account, Business Card Holder, Business Card Maker, Business Card Template, Business Cards Near Me, Business Casual Attire, Business Casual Shoes, Business Casual Woman, Business Plan Examples, Ca Business Search, Ca Sos Business Search, Capital One Business Credit Card, Chase Business Checking, Chase Business Credit Cards, Chase Business Customer Service, Chase Business Login, Chase Business Phone Number, Cheap Business Cards, Citizens Business Bank, Cox Business Login, Digital Business Card, Facebook Business Suite, Finance In Business, Free Business Cards, Google Business Login, Harvard Business School, Lands End Business, Massage Parlor Business Near Me, Michigan Business Entity Search, Mind Your Business, Mind Your Own Business, Ohio Business Search, Risky Business Costume, Skype For Business, Small Business Loan, Small Business Saturday 2021, Starting A Business, Texas Business Entity Search, Triumph Business Capital, Vending Machine Business, Verizon Business Customer Service, Vonage Business Login, Wells Fargo Business Account, Yahoo Small Business, Yahoo Small Business Login

Continue Reading

Previous KIA AMERICA AND CURRENTLY MOBILE CHARGING SERVICE ANNOUNCE PARTNERSHIP TO “RECHARGE” ELECTRIC VEHICLE OWNERSHIP
Next Motor business plugs into a greener future post-pandemic in new ownership

More Stories

  • Business Owner

Not All Marketing Consultants Are Created Equal

Malik Runswick May 24, 2023 0
  • Business Owner

Why CPA Accountant Marketing Programs Fail

Malik Runswick May 22, 2023 0
  • Business Owner

THe Difference Between Digital Marketing and Social Media Marketing

Malik Runswick May 18, 2023 0
May 2023
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  
« Apr    

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017

Recent Posts

  • Persuasion in Advertising – How to Use Persuasion Techniques in Advertising
  • Five Conditions for Innovation
  • Car Magnets Advertising – The Pros and Cons and How to Do It
  • Real Estate Advertising Ideas – 5 Unique Advertising Options
  • Not All Marketing Consultants Are Created Equal

BL

Pawnbrokers Melbourne 

You may have missed

  • Business Economics

Persuasion in Advertising – How to Use Persuasion Techniques in Advertising

Malik Runswick May 27, 2023 0
  • Business News

Five Conditions for Innovation

Malik Runswick May 27, 2023 0
  • Business Economics

Car Magnets Advertising – The Pros and Cons and How to Do It

Malik Runswick May 25, 2023 0
  • Business Economics

Real Estate Advertising Ideas – 5 Unique Advertising Options

Malik Runswick May 24, 2023 0
  • Business Owner

Not All Marketing Consultants Are Created Equal

Malik Runswick May 24, 2023 0
microfocus-x-ray.com | CoverNews by AF themes.

WhatsApp us