Lendtek
Jul 17, 20202 min
The first step to receiving a business loan is understanding the different options. From Small Business Administration (SBA) Loans to Equipment Financing, there are a variety of products, which Lendtek offers to help take your business to the next level.
SBA Loan - An SBA loan is government-guaranteed, long-term funding made by SBA lenders that allow businesses who may have been turned down by the bank to receive low-interest rate funding that can be used for many business purposes.
Term Loan - 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.
Business Line of Credit - 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
Merchant Cash Advance - Merchant cash advances are not your typical small business loan. With an MCA, financing companies upfront 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.
Equipment Financing - 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.
Invoice Financing - 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.
Short-Term Loans - With a short-term small business loan, you are lent a set amount upfront, which you quickly pay back (along with fees) over a short period of time.
Personal Business Loan - Personal loans for business purposes can be especially useful for newer businesses without established business histories. If you’re a business owner in this situation, personal loans for business often have lower interest rates than many other business loans you’d typically qualify for.
Startup Business Loan - A startup business loan is any kind of financing aimed specifically towards startups with little to no business history. There are a variety of new business loans and financing methods available to new business owners: SBA microloans, business credit cards, business grants, friends and family, and crowdfunding.