In times of uncertainty, money becomes invaluable. Even the smallest sale makes a huge difference.
A surge in small business loans has become widely available. With plenty of options in loan amounts, you can find what you need.
Let us go over some crucial information that can help you find the best small business loans.
1. Best Small Business Loans
You may start off wondering why you need a business loan and not a personal loan.
The benefits of a business loan exceed that of a personal loan, to begin with. Though a personal loan may offer you more flexibility, that is where the pros end.
A business loan is eligible for tax credits, and it will give you peace of mind that your personal assets will be safe from seizure.
2. SBA Loans
The best way to get a small business loan for initial funding may be through the Small Business Association, or SBA. The SBA loan is back by the government. They can pay up to 85% of your loan if you are unable to.
An SB7(a) loan can range begin at $500 and go into the millions. Microloans do not exceed $50,000.
3. Merchant Cash Advance
If you failed to qualify for a loan, an alternative option is a merchant cash advance. The loan amount will be based on your business’s credit card revenue.
Depending on your business’s revenue, you will receive you can qualify for a 25% to 250% loan of your credit card revenue.
4. Short Term Loans
Need cash fast? A short term loan is a fast option with a far less stringent application process. You also have the benefit of paying off your loan early without having to pay the penalty.
The average short term loan amount is between $100 to $2,000.
5. Small Business Start-Up Loans
The best place to get a small business loan can be through the government. Start-up loans can range from $500 to $25,000.
To begin the application process, a detailed and well-organized business plan will be needed to approve your business for the correct amount.
6. Business Line of Credit
If your business lacks an exceptional portfolio or credit, a business line of credit will be the most forgiving option.
The best banks for small business loans will be able to offer you and your business pre-approved options. With a business line of credit, you will only pay interest on the amount of money used. The minimum amount of loan can be $1,000 and cap at 1 million.
7. Term Loans
The best long term small business loans can be term loans. Also known as traditional business loans, their loan amount can begin at $500. The average amounts of money loaned range from $25,000 to $500,00.
The amount you will qualify for will depend on your business plan and overview.
Hope for the Future
Small businesses have it rough from the beginning, even under favorable circumstances.
The amount of work you will put into your small business will be huge. Your workday is not a 9-5, but 24/7.
Are you interested in learning more about finding the best small business loans? Contact us to learn more about the services we offer.
Penn Commercial Capital can help you secure your next round of financing or business loan efficiently and ethically. We are proud to champion small businesspeople and finance clients seeking loans from as little as $100,000 up to $100 million.