Finding the right kind of loan for your small business can be challenging. We’ve broken down five top loan types to help clarify the lending process for your business needs.
Long Term Loans
If your business is looking to fund larger projects that pay back over a longer term, this option may be right for you if your business is looking to expand to a new location. Have new products to develop and equipment to purchase. Large-scale inventory purchases a long-term loan with terms of 15 to 60 months, and interest rates as low as 5.49% are the best fit.
Short Term Loans
Suppose your business wants to finance a project with an immediate investment return, such as updating or refreshing locations and inventory deals with a quick turnaround. Marketing campaigns, seasonal hiring, or high-demand inventory short-term business loans within 3 to 12 months are right for your business. Short-term loans cost around 19% on average. And ask for a fixed daily payment Monday through Friday until the Business pays back the loan. Short-term loans are great when you need quick funding for a project and don’t mind paying higher interest rates because the return on investment is so high.
The start-up financing program connects entrepreneurs and small business owners with $25,000 to $150,000 in unsecured business lines of credit. This program can provide you with funding in as little as ten days. And typically offered with a 0% interest rate for the first 6-18 months. In the second year, the blended interest rate for the credit cards averages around 8%, depending on the bowers’ credit score. This is a great way to quickly get your business off the ground in higher-risk industries. Traditional SBA loans are hard to obtain and take a long time to get an answer from the bank.
Line of Credit
For an established business looking to manage accounts receivable gaps, take advantage of new opportunities, or manage unexpected expenses. These are great reasons why you would use a line of credit. How it works is you draw the cash you need directly into your business. If you check your account at any time, you only pay interest on what you draw. Pay back your balance early anytime and save on interest. Lines of credit can go as high as $100,000 with interest rates. Averaging around 13% and payback line with fixed weekly payments.
Merchant Cash Advances is an alternative business financing that is a viable short-term financing option. If you don’t qualify for business loans but have the same funding requires as a short-term loan. Merchant cash advances are on credit & debit card sales, allowing you to get funding quickly. MCA’s terms are short, with a fixed percentage of your merchant service terminal sales. Paying back the advance every day your business is open. MCA is a great fit for businesses that have high transactions. And predictable sales, as your business, can typically get a 10% advance on annual terminal sales.
Let Us Help
BitX Funding is an online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders. Who will compete for your business? We believe small business owners drive the economy and are passionate about helping your company reach its full potential.
You can contact a loan specialist by phone at 800-824-2407, or email at [email protected], or apply online. They can guide you on which loan is the best fit for your business.