For many small business owners, access to a little extra working capital would be the golden ticket to reaching for their company’s next level of growth.
There are many types of business loans available that will get you the working capital you need without breaking the bank. Here are a few types of business loans. If you’re looking for more information about SBA loan broker training check this out.
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1.Bank loans
If you’re looking for single-digit interest rates, a bank loan is an obvious choice. The problem, though, is that if your business can qualify for a small-business loan from a traditional bank, you probably don’t actually need one.
Many hopeful business owners find themselves completing lengthy bank loan applications and waiting through long underwriting processes, only to be turned down for a bank loan.
2.Bank lines of credit
A bank line of credit is a slightly different type of business loan but comes with similar interest rates and most of the same pros and cons as a traditional bank loan.
The added benefit of a small business line of credit is that you pay interest only on the funds you actually use, allowing you to further minimize your cost of borrowing.
3.SBA loans
In many ways, obtaining Small Business Administration loans may be the best possible option for small business owners. That’s because an SBA loan rate is lower—typically starting at 6.5 percent interest—like a bank loan, but the SBA has more accessible qualification standards than you may find working directly with a bank.