Whether it is a start-up or money to expand and grow, a small business loan may be needed. For those who need some capital, the Enterprises television show reviews small business loan information.
To start, there are three different types of loans to consider:
Traditional bank loans
Alternative Lender loans
Ask and answer these questions before choosing a source:
- How much money is needed?
- How long will it take to pay the loan back?
- How much collateral is needed to secure the loan?
- How fast is the loan needed?
Small business loans granted by the Small Business Administration are for its partners (banks, micro-lending institutions, etc.) and guidelines are set by the administration for the loans. Small business owners have a choice as to loan types, and each one comes with its own set of parameters and stipulations on how the money can be used and when it has to be repaid. These types of loans are preferred by entrepreneurs.
Conventional bank loans offer a little more room on what a business owner can do with the money. These loans are less stringent than SBA loans, carry low interest rates, and are generally approved faster. Keep in mind that the repayment schedule is shorter than an SBA loan and may include a balloon payment at the end.
Alternative lenders are better for businesses which don’t have an excellent financial history. Loan approvals occur faster. However, interest rates tend to be higher. The Enterprises television show notes that these types of loans are preferred by start-ups because of how fast the approval process is.
Consider every loan option before making a decision to borrow money for a small business. Be sure to know the answers to the questions above. Make an educated and informed choice and move forward in the success of small business endeavors.