How Exactly Do Small Business Loans Work?
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What Is a Small Business Loan?
Commercial real estate Operation expenses Debt consolidation Equipment purchases Equipment repairs Refinancing Inventory purchases Startup costs Research and development Launching a new division or product line Marketing and advertising
How Do Small Business Loans Work?
How to Find The Right Business Loan
What Do You Need It for?
What Do You Need to Qualify?
Repayment term: the amount of time that a borrower has to pay back the loan. Fees/penalties: extra costs on top of the interest that you may need to pay, such as application fees, origination fees, and late fees.(All small business loan fees are usually listed in the loan agreement.) Eligibility requirements: conditions the bank or lender requires the borrower to meet in order to qualify for financing. Interest rates: what the lender charges for giving you access to the money, expressed as a percentage of the loan amount. Principal: the total amount of money you are borrowing (not including interest). Time to funding: how long it will take for the lender to distribute funds to the borrower.
Types of Lenders That Offer Business Loans
Direct Online Lenders
Large Commercial Banks
Large Community Banks
Peer-to-Peer Lending Sites
Comparing Business Loan Options
Interest Rate Need-to-Knows
Applying for a Business Loan
I.D. Bank statements Proof of Ownership Balance sheet Personal tax returns Business tax returns Profit and loss statements Voided business check
Pros and Cons of Business Loans
Types of Small Business Loans
Small Business Line of Credit
Accounts Receivable Financing
Working Capital Loans
Small Business Term Loans
SBA Small Business Loans
Small Business Credit Cards
Frequently Asked Questions
About the Author
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