Financing
Term Loans
Term loans offer a lump sum of cash repaid with interest in fixed monthly payments, ideal for businesses looking to expand. They’re available from banks, online, and alternative lenders. Banks offer lower rates but require strong credit and longer business history, while online lenders are more flexible but costlier. Collateral or a personal guarantee may be required. Pros include predictable payments and higher loan amounts; cons include stricter qualifications for the best terms.
SBA Loans
SBA loans, partly guaranteed by the U.S. Small Business Administration, are ideal for expanding businesses or refinancing debt, especially for borrowers with strong credit who can wait for funding. The popular SBA 7(a) loan offers up to $5 million, with low rates and long terms—up to 25 years. Funds can be used for working capital, equipment, or real estate. While affordable, SBA loans require a detailed application process and a personal guarantee, making them harder to qualify for.
Business Lines of Credit
A business line of credit is a flexible, revolving loan ideal for short-term needs, cash flow management, or seasonal expenses. Like a credit card, you borrow as needed up to a set limit and pay interest only on what you use. Offered by banks and online lenders, lines of credit usually don’t require collateral but may need strong credit and solid financials. They provide ongoing access to funds but can come with extra fees and higher rates from online lenders.
