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Types of Loans for Small Businesses

As a small business owner, finding the right type of loan for your business can be a daunting task.  Determining which option is the best fit for your needs can be difficult, with so many options available. To help clarify the lending process, we’ve broken down five of the top loan types for small businesses.

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  • Long-term loans:

Long-term loans are ideal for funding larger projects, like expansion, new products, or equipment. These loans typically have terms of 15 to 60 months and interest rates as low as 5.49%.

If your business needs to finance a project with an immediate investment return, such as updating or refreshing locations and inventory, a short-term loan may be the best choice. These loans typically have terms of 3 to 24 months and cost around 10% on average. Furthermore, they also require a fixed daily payment until the loan is paid back.

Start-up financing programs can provide funding for small business owners, up to $150,000 in unsecured credit. These programs can provide funding in as little as ten days and typically have a 0% interest rate for the first 6–18 months.

For established businesses looking to manage accounts receivable gaps, take advantage of new opportunities, or manage unexpected expenses, a line of credit may be the best option. With a line of credit, you can draw the cash you need directly into your business and only pay interest on what you draw. Lines of credit can go as high as $100,000 with interest rates averaging around 7%.

If you don’t qualify for traditional business loans but require short-term funding, a merchant cash advance may be a viable option. MCAs are based on credit and debit card sales, allowing you to get funding quickly. You must pay a fixed percentage of your merchant service terminal sales as short terms, and repay the advance every day your business is open. Businesses with high transactions and predictable sales are a great fit for MCAs.

Why BitX Funding for Small Business Loans:

In summary, when it comes to finding the right loan for your small business, there are many options available. Long-term loans are best for larger projects, short-term loans are best for immediate returns.

Start-up funding programs can provide unsecured business lines of credit, while a line of credit can help manage accounts receivable gaps or unexpected expenses. Merchant cash advances are a good option for businesses that don’t qualify for traditional loans but need short-term funding.

Interest rates and loan amounts can vary greatly, so it’s important to consider your credit score, cash flow, and credit history before making a decision. BitX Funding can help connect small business owners with lenders who will compete for their business, whether you’re looking for equipment loans, working capital, or a personal line of credit. We can guide you to the best loan for your business with a loan specialist’s help.

How to apply for Different Types of Small Business Loans

We help small business reach their full potential at BitX Funding. Our online marketplace specializes in connecting small business owners with lenders who will compete for your business.

Our loan specialists are available by phone at 800-824-2407, email at [email protected], or online to guide you on which loan is the best fit for your business. We can help with various business loans, including lines of credit, real estate loans, and equipment financing.


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