Are you a small business owner? How to secure funding and when to do so for your business is a responsibility you can’t ignore. Whether your business is old enough or a start-up, you will need cash to help you take care of essentials for different reasons and at different times.
It is at this point where a small business loan come in handy. We will take you through various types of small business loans that can help you improve your business.
Hard Money Business Loans
It is a risky asset-based loan. Companies that cannot access other types of loans use this loan to finance operations. In case a project presents itself for a small business owner to invest in, you can opt for hard money loans. They are placed with mortgage companies, banks, and private investors. It is advisable to use them for emergency cases only for small businesses because their interest rates are quite high.
A Business Line of credit
It is a flexible type of loan that you can get. Normally after application, you can get the money within one or two weeks. The interest rates vary (8-24%). Further, it is revolving since you access the money numerous times instead of receiving a lump sum. However, qualifying for this soft small business loan is not easy. Prime candidates should be in business for more than six months. In case the ‘tough times’ last longer than you expected, MoneyGiant could be the ideal solution to turn to. We stand out as an expert financial solution which offers a simple process. Additionally, our partners will perform simple soft checks to ensure there is no impact on your credit. To make the deal even better, you will have access to your cash advance loan in as little as 48 hours.
Even though the SBA loans are paperwork-intensive, they help you get the resources and funds you need. Particularly, disadvantaged businesses and those that are unlikely to get help elsewhere can boost their business here. The duration can also be from 10-25 years. They are unique in that the lender isn’t the aforementioned agency. Rather, a substantial portion per loan is a guarantee. With this, other lenders’ risks are reduced hence expecting willingness to approve your request.
Short Term Loans
This is indeed a fast business loan since all you need is to click the submit button, and if approved, you will have the money in 24 hours. You are expected to pay back the money quickly (1-3 years). The interest rates are favourable as they start at 8%. The qualification requirements are friendly. If you have been in business for two years and your credit is healthy, you are in a good position to secure these quick small business loans.