Loans for small business encompass all financing options available for business owners. Although, technically your business doesn’t have to be “small” in order to get one. Each type of loan is unique in addressing different specific needs. One type of financing helps entrepreneurs get new equipment. Another helps make unexpected purchases. Others help business owners with fair to bad credit scores, etc.

Business loans act in very similar ways to personal loans. However, they can only be used for your business. If you’ve ever taken out a mortgage loan, student loan, or any other type of loan for personal use, then you already have a good idea as to how they work. A business financier lends money to a business owner, who can then use the capital to fund their specific needs. The loan is then gradually paid off over time until all lended funds are depleted. Different types of financing are paid off in different ways.

Any loan specialized exclusively for small business use is considered a small business loan.

Ironically, you don’t need to own a small business in order to obtain most of them. This excludes loan types such as SBA loans, which can only be obtained by small business owners.

If you would like to see if your business is considered “small” by the U.S. Small Business Administration (the SBA loan originator) and the North American Industry Classification System, click the link here to find out: What is a Small Business?

• Business Term Loans

• Fast SBA Loans

• Small Business Equipment Loans

• Accounts Receivable Financing

• Revolving Business Line of Credit

• Merchant Cash Advances

• Purchase Order Financing

• Commercial Mortgage Loans

• Franchise Financing

• Secured Loans

• Unsecured Loans

• Startup Business Loans

• Medical and Dental Practice Loans

• Minority Business Loans

• Business Loans for Women

• Veteran Business Loans

Small business owners need a dependable source of funding in order to take on any opportunity, and solve any business challenge.

From taking on more customers, to hiring more staff, to purchasing materials, fixing broken equipment, managing payroll, to getting working capital in times of interrupted cash flow, at some point every small business needs help optimizing their operations.

Using your personal finances and business profits is one choice. However, most small business owners wind up switching to borrowing capital for several reasons, including:

• Not paying full expenses up front

• Saving cash with a lower cost of capital

• Protecting business and personal assets

• aving valuable time and resources

• Bridging gaps in cash flow

• 6+ Months in Business

• $100K in Annual Gross Sales

• No Minimum FICO Required

However, qualifications will vary depending on the type of lender providing them, and the type of business loan you need.

For example, in order to qualify for an SBA loan, you will need:

• 6+ years in business

• $10K in Monthly Gross Sales

• And 685+ FICO

Interest rates vary depending on the type of financing acquired. The two most common types of rates include annual percentage rate and factor rate, although many other interest rate types are also offered via alternative financing. Factor rates are the most common type of interest rates among fixed-rate business loans. These are represented by a fixed decimal number, which sets the rate for the lifespan of the business term loan

Some are, and some aren’t. “Secured”, meaning loans that require collateral, are leveraged by a form of liquid or capital assets.

The collateral required, however, takes the form of indirectly owned assets, instead of personal or business assets like real estate.

Indirectly owned assets that can take the form of collateral include newly leased or purchased equipment, customer invoices, and portions of future sales.

“Unsecured” financing, or options that have no collateral requirements, are also available through alternative financing.

This offers protection of one’s assets in case of foreclosure, as well as an expedited funding process, due to no valuation process having to take place.

Generally speaking, terms can range anywhere from 6 months to 10 years.

SBA loan terms last anywhere between 10 to 25 years.

Although most small business owners shoot straight for options with longer terms due to their smaller payment installments, this is not always the best option for every business.

For many businesses, short term financing options may be the best solution to their business needs, and provde a lower overall cost of capital long-term, as well as valuable time, energy and immediate funding relief.

Be sure to consult with a Business Financing Advisor to determine the best term length option for you.

You can get as many loans as you’d like at a time. The decision of how much you should borrow is a different story.

Most small business financiers advise that you only take out one or two loans at a time.

Some loan types compliment each other perfectly, such as fast business loans and SBA loans, and can benefit small business owners in ways not possible by themselves.

It’s crucial that you speak to a Business Financing Advisor before applying to more than one at a time, so as not to be overwhelmed and over complicate potentially simple funding needs.

Many types of financing is offered by both federal and independent business financing companies.

However, the variety of options varies depending on the type of lender you choose.

Most direct lenders tend to offer very few financing options. These lenders often specialize in providing these single or few options, which makes competent direct lenders a valuable asset when seeking specific types of business funding.

This goes for banks as well. Most small business owners go to banks to apply for SBA loans alone. However, there are banks that offer other options, though not as many as those offered by alternative financing companies.

Getting approved with bad credit through a bank is nothing short of impossible.

On the other hand, independently set standards by National Business Capital & Services allow for the approval of all credit profiles, regardless of how low small business FICO scores may be, and how blemished their financial histories.

Click the link here for more information regarding bad credit business loans: How to Get Small Business Loans for Bad Credit

Yes! There are small business financing options exclusively for businesses with smaller staff sizes and revenue streams that cannot be obtained by larger-scale businesses. One of these options include SBA funding.

They’re also legitimate in a legal sense as well. Although not all financing options are held to federal regulations, others are regulated at the state level, so you can rest assured that your financing is safe and secure.

All you need to include in your secure online application is:

• Your name and phone number

• Email address

• The name and address of your business

• Yearly gross sales

• Your desired loan amount

• Time in business

• The type of industry you’re in

• Your credit score (Optional)

• And how you intend to use your financing!

After that, a Business Financing Advisor will contact you in minutes to learn more and will consult with you in finding the best loan for you and your business goals.