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Last Updated on June 25, 2022 by coffeepo
Businesses need money to grow, and there are a variety of loans available to help them do just that. From small business loans to government-backed loans, there’s something for everyone. Here are eleven types of loans businesses can use to get started or grow their operations.
1. SBA Loans: The Small Business Administration (SBA) offers a variety of loans to small businesses, including 7(a) and 504 loans.
2. Business Credit Cards: Business credit cards can be a great way to get started with business financing. They offer low interest rates and many come with rewards programs that can save you money on business expenses.
3. Equipment Financing: If you need to purchase equipment for your business, equipment financing can be a great option. This type of loan allows you to finance the cost of the equipment over time, making it more affordable up front.
4. Commercial Mortgages: A commercial mortgage is a loan used to finance the purchase of commercial property, such as an office building or retail space.
5. Business Lines of Credit: A business line of credit is a flexible financing option that can be used for a variety of purposes, such as working capital, inventory financing, or equipment purchases.
6. Invoice Financing: Invoice financing is a type of business loan that allows you to use your outstanding invoices as collateral for a loan. This can be a great option if you’re having trouble getting paid by customers in a timely fashion.
7. Merchant Cash Advances: A merchant cash advance is a type of funding where a lender gives you an upfront sum of money in exchange for a percentage of your future credit card sales.
8. Government-Backed Loans: There are a variety of government-backed loans available to small businesses, including SBA loans and VA loans.
9. Alternative Lenders: Alternative lenders are online lenders that offer financing to small businesses that may not qualify for traditional bank loans.
10. Equity Financing: Equity financing is a type of funding where you sell a portion of your business to an investor in exchange for capital.
11.Angel Investors: An angel investor is an individual who provides capital for a start-up business in exchange for equity.
Conclusion
No matter what type of loan you’re looking for, there’s a good chance you’ll be able to find it. Just make sure you compare interest rates, terms, and fees before you commit to any one lender.
