Whether you’re looking to start a business or you’ve been successfully running your small company for a while now, there will undoubtedly come a time when you’ll need a little extra help in the form of money to move your business forward.
As the owner, you’ve got a few options. You could pull from your savings, ask a family member for some cash, or even get a personal loan. However, the most common way for a small business to grow is to get their hands on business loans.
If you’re like most people, the thought of loans can make you bite your lip in worry. However, getting a business loan isn’t as scary as you think. In fact, it’s one of the best ways to get the money you need for your company.
Read on to learn more about the types of small business loans!
Business Credit Cards
In this contemporary world, business credit cards are the way to go. Business credit cards work essentially like consumer credit cards do, except they’re geared toward building up your business.
Usually, business credit cards give you a higher spending limit to help you purchase equipment and other company items. You also tend to get bonuses when you use the card that can help you get exclusive offers and plenty of rewards points.
Out of all of the business loans available, a term loan is the most traditional type of loan that you can get. These loans offer a simplistic approach: You go to a lender to receive a loan, you’re granted a lump sum loan (if approved), and you pay it back over time in monthly installments.
There are two types of term loans you can apply for. Secured loans tend to require collateral in exchange for funds, whereas unsecured loans are for business owners with good credit and a healthy footing in their industry. Find out which one you qualify for ASAP!
As the name implies, this loan is designed to be a “bridge” to help your company get from point A to point B. Bridging loans offer short-term financial solutions to help companies of any level get the finances they need in a pinch.
If you just need a bit of cash to hold you over until you secure a long-term financial solution, then bridging loans are just the thing for you!
Revolving Credit Loans
Revolving credit loans are very flexible loans. As an alternative to overdrafts, these loans allow the borrower to tap into them whenever they need them and only pay on interest when the funds are used. This ensures that you always have cash available to use whenever you need it.
Apply for Business Loans Today
Now that you know about the different types of business loans out there, you’ll be able to choose the right one to help your company grow to the next level. Choose from business credit cars and more—just remember the right type of startup business loan is only a click away.
Did you enjoy this article? Then check out the rest of our site to learn more tips and tricks to get the most out of our success!