Business Loans Available: A Guide to Financing Your Business

Jordan Brooks

Jordan Brooks

— 3 min read
Businessman in suit writes on whiteboard displaying mortgage loan rates during a real estate meeting.

```html

Estimated Reading Time

Approximately 10 minutes


Key Takeaways

  • Understanding the types of business loans can aid in selecting the right financing option.
  • Comparing lenders on terms and interest rates is crucial for favorable loan conditions.
  • Eligibility criteria and documentation are key components of the loan application process.


Table of Contents


Business Loans Available: A Comprehensive Guide on How to Fund Your Business

The type of business loan you choose will depend on the financing needs you are seeking to meet. Selecting the best lender could affect loan terms — including interest rates and approval times. When it comes to your money, knowing how interest rates and terms affect your accounts can lead to some of the greatest returns. Eligibility and documents are two critical elements in the loan application process.


Types of Business Loans Available

By familiarizing yourself with the kinds of business loans that are available, you can choose the type that is best for the specific financial needs of your company.

  • Short-term vs. Long-term Business Loans
    Short-term business loans usually range from one month to one year; they are a perfect way to get quick cash flow and offer quick repayment. Long-term business loans: Longer than a year—ideal for big investments such as expansion or equipment purchases.
  • Secured vs. Unsecured Business Loans
    Secured business loans require collateral, which lowers the risk for the lender and often results in lower APRs. Unsecured business loans work without any kind of collateral — and tend to be higher risk, so interest rates are proportionally higher.
  • SME Business Loans
    Tailor-made for SMEs, these business loans give the right kind of support to an enterprise for either growth or for overcoming some pressing financial problems.
  • Some other popular options include term loans for a clear, definable repayment period, SBA loans backed by the government, lines of credit for ease of business use, and microloans for companies looking for smaller amounts of capital. You can find detailed breakdowns on NerdWallet, Business.com, and Bankrate.


Comparing Business Loan Providers

A little fine-tuning can make all the difference.

  • Big Banks
    Big names such as Bank of America and Wells Fargo can offer competitive payday loans. For example, Bank of America has secured term loans for as low as 7.00%.
  • Online Lenders
    With operations such as Triton Capital, whose processes are quick, and where money can be available within 24 hours, offer a less cumbersome version of traditional banks.
  • Specialized Lenders
    Some lenders are organized around industry specializations and cater to the niche market they serve. SMB Compass is an example of that. Learn more about individual options in Bankrate’s guide.


Interest Rates and Terms

Knowing how interest works and the terms of your loans will help you make sound financial decisions.

  • Average interest rates: Anywhere from SBA microloans at 8.00%-13.00% to Bank of America’s secured loans at 7.00%.
  • Key terms to know: Watch out for prepayment penalties, a range of repayment time and additional fees.
  • Factors: Credit scores, the type of loan, and existing customer perks, such as Bank of America’s Preferred Rewards, impact these rates. Read more in-depth comparisons at Bankrate.


Easy and Fast Business Loans

For quick business performance, work with the easy business loans with minimum paperwork.

  • Quick processes: Triton Capital and LendingTree update on fast routes, with a timetable from applications to approval in just one day and hassle-free paperwork.
  • Steps: Limit documentation and use digital forms. Learn more at Bankrate and LendingTree.


Eligibility and Application Process

Before you apply for a business loan, there is a degree of eligibility that needs to be understood and you must gather documentation.

  • Common requirements: Revenue thresholds, how long you’ve been in business, and credit history.
  • Application process: Gather financial statements, business plans, and all required documents. Bankrate has a detailed guide you can use as a reference.


FAQ

*Apply for funding with WeFrontIt here.*

```

Read more