SBA loans are government-guaranteed, long-term loans made by SBA lenders that allow businesses who may have been turned down by the bank to receive low-interest rate loans that can be used for many business purposes.
Just like a traditional bank loan, with a traditional-term business loan, you are lent a set amount upfront, which you pay back (along with fees) over a set period of time.
With equipment financing, the lender will upfront you cash to help purchase the equipment outright. You then pay back the total amount lent, plus fees, for a set period of time.
With a business line of credit, a financial institution gives you a credit limit, or a maximum amount of capital you are able to draw on at any given time. Just like a credit card, you only pay interest on the amount you use.
Invoice financing allows you to sell your invoices to a lender, who will then upfront you a large majority of the invoice amount, holding a remaining percent (usually 20%) until the invoice is paid.
With a short-term business loan, you are lent a set amount upfront, which you quickly pay back (along with fees) over a short period of time.
Merchant cash advance is a business loan where the lender up fronts you a set amount of cash and then you repay this advance (plus their fee) with a set percent of your daily credit card sales.
Our three startup loan products can help your young business get the capital needed to grow. These two products (business line of credit and equipment financing) are a more traditional form of startup capital and a great option if you have a strong personal credit score.
A lot of people don’t know that you can actually use a personal loan for business purposes. Personal loans are especially helpful for new businesses that don’t have a long financial history to show lenders. Personal loans can often have lower interest rates than some business loans, making it a great option for young companies looking for financing to grow their business.