What is a Small Business Loan?
A small business loan is offered by private lenders, banks, credit unions, and government SBA loans. A small business loan helps cover the expenses that keeps your business running but also helpsyour business grow and expand.
Types of Small Business Loans
Types of small business loans are:
- Term Loans:Term loans for businesses are provided by online lenders, traditional banks, and credit unions. This type of loan offers a lump sum with a fixed or variable term and repayment amount.
- Business Line of Credit: This type of loan can be used to procure equipment or inventory,invest in marketing, or handle fluctuations from seasonal sales,or generally any business purpose
- Equipment Loans:An equipment loan is a kind of term loan that can be used to procure and spread out the cost of a large piece of machinery for your business. Generally, the equipment works as collateral security for the loan.
- Invoice Financing:If you are not able to manage the cashflow of your business regularly then you can use invoice financing. With invoice financing, you sell your unpaid invoices to a money lender at a discount.
- Real Estate Loans:Is a term loan used to purchase, build or refinancea commercial property, like a retail center or a warehouse.
- SBA loans: primary 7(a) loans for small business
Who can apply for a Small Business Loan?
Any business can apply for a small business loan, here are a few things a lender will look at:
- Check your credit score: Lenders check your credit score, debt, current liabilities, revenue, profit/loss, how long in business, type of business, when considering a small business loan.
- Have a strong business plan: A good business plan is necessary for taking a small business loan as the lenders will want to know your estimated costs & projections for revenue.
- Find Out how much funding your business can borrow: Basically can you pay back the loan?
- A business plan (recommended)
- Business & persoanl Income tax returns for at least 2 years
- Documentation of last and existing business loans
- Minimum 6 months of business bank account statements
- Legal documents like leases, licenses, articles of incorporation, and agreements/contracts
- Lenders may ask for additional information
How to apply for Small Business Loan at LendingCapital.net?
The process is quite simple:
- Apply:Simply, fill out the application form 24/7
- Looking for quick results and under 100K use our SEARCH program withh over 30 top lenders, if you are delcined we offer additional opportunities with an alternative lender for you to review.
- Over 100K use our business application under business tab
- We also offer SBA loans through our approved SBA lenders
- We Review application:We search the best programs & lenders that best meets your requirements with a soft pull so we don’t disturb your credit.
- Receive funding:Once approved get funding within 1-5 business working days.