There are plenty of small business lenders with financing options available. Small businesses are eligible for various types of loans depending on credit score, revenue and years in business. These lenders offer collateralize secured loans or different types of unsecured loans. As a business owner, you should take advantage of the financing options available for additional equipment, supplies or locations. In this post, we’ll cover the best small business lenders for multiple financing options.
Short Term Lenders
Among the multiple financing options for small businesses, one option is short term lenders. Short term business lenders for small businesses allow for loans up to $250,000 and a line of credit with a limit of $100,000. These lenders are regarded for their quick financing, benefits for prepayment and loyalty. The prepayment benefits permit borrowers to pay off their loan in full while also waiving any outstanding interest rates.These loans require that your business be active for at least one year with a lender group and have a business account. A low minimum credit score is also required along with the borrowers signature of a personal guaranty. Choosing short term lenders as your financing option can ensure your business receives a fast and reliable loan with ease.
SBA Partner Lenders
Another financing option for small businesses is SBA partner lenders. An SBA loan is issued by private lenders and partly sponsored by the federal government. These lenders have a variety of loan options such as 7(a) loans, 504 loans and SBA microloans. These loans have adjustable terms and low interest rates. The SBA waives fees for both borrower and lender when working with the 7(a) and 504 loans. An unconditional personal guaranty is required of those who have at least 20% company ownership as means of business collateral. With the variety of loans provided by SBA partner lenders, you can surely find the best financing option for your small business.
Flexible Term Lenders
Out of the variety of financing options for small businesses, flexible term lenders allow for short, medium or long term funding at competitive rates. Depending on the needs of your small business, the term of your loan can go on for just 6 months or up to 5 years. These lenders provide flexibility not only in their duration but also with the funding they provide. Depending on the type of flexible loan, you can receive up to $5 million which can be dispersed in increments based on need. Flexible term lenders are lenient in regards to credit issues as they have an 85% approval rating. These loans require documentation for approval which can occur within 24 hours. These lenders supplying competitive rates, flexible terms and extensive funds could be the right financing option for you.
Some smaller businesses may be enticed by larger loans, but if you’re looking for low interest rates, microloan lenders may be the best financing option for you. Although microloans are usually under $15,000, they have an unmatched interest rate of 0%. Bear in mind that acquiring this type of loan may take a while. In order to qualify for this particular loan, your friends and family are required to contribute to the loan. Once they fulfill their contribution, you may begin funding your small business. Unlike the many other financing options or funding partner, microloan lenders may provide minimal funding but their interest rates can’t be beat.
Best Credit Commercial Lenders
Aside from the multiple financing options available to small businesses, credit commercial lenders provide small businesses with a variety of providers to choose from. These lenders provide both alternative and online commercial lending options for small businesses. The best credit commercial loans include SBA, medium and short term, equipment and invoice financing, line of credit and merchant cash advance. In contrast, alternative loans refer to online based, non-bank commercial lenders. Alternative commercial lenders take on the risk of funding small businesses and make business financing easily accessible. Similar to typical commercial lenders, these alternative lenders provide term loans and lines of credit, but also offer new loan products. Both standard and alternative credit commercial lenders can provide your small business with a loan fit right for you.
With a variety of financing options to choose from as a small business owner, it is important to choose the most appropriate lender for you. If you’re looking for quick financing, benefits for prepayment and loyalty, short term lenders may be a good fit. SBA partner lenders could be a better option for your small business for a wide variety of loan options with waived fees. A small business with credit issues in need of flexibility may benefit more from utilizing flexible term lenders. Small businesses in need of a loan under $15,000 with no interest rate would benefit most from seeking out microloan lenders. Both standard and alternative credit commercial lenders provide term loans and lines of credit. However, alternative lenders could be easily accessible when acquiring funds for your small business. Given the luxury of financing options available, surely you can find a suitable lender best fit for your small business.