Discover How Small Business Loans Work

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Discover How Small Business Loans Work
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Types of Small Business Loans
There are many types of small business loans,
ranging from the type of lender to the purpose of
the loan. Each has varying repayment terms,
interest rates, repayment periods, and more.
These are some of the most common small business
financing types.
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SBA Loans

• SBA loans are loans that are partially backed by
  the U.S. Small Business Administration (SBA). SBA
  backing makes the loans safer for SBA lenders
  and, therefore, cheaper for qualified borrowers.
  Some requirements include
• Your small business has unsuccessfully sought
  other financing options.
• The business is for-profit.

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Term Loans
Term loans are just like they sound. Banks,
credit unions, and online lenders offer
businesses a variety of term loans in the form of
lump sum payments. Term loans can be used for a
variety of purposes and may have repayment
schedules of several years with fixed rates.
Additionally, you can sometimes get low interest
rates and favorable terms on bank loans for your
small businesses.
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Short-Term Loans
If you need to access a lot of capital quickly
for your small business, short-term loans can
help. For example, if you are running a small
trucking business, one of your trucks might have
a major part break that needs to be replaced
quickly.
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Eligibility Requirements for Small Business Loans

• Different lenders and loans have different
  eligibility requirements. Nonetheless, these are
  the most common qualifying considerations that
  lenders take into account.
• Credit score Your personal credit score and
  business credit score may be factored into your
  lenders decision-making. Typically, youll want
  a credit score of at least 600.

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• Business revenue Since your small business is
  trying to get a loan, your annual revenue will
  play a role in their decision. The higher your
  revenue, the less risky your business.
• Collateral Especially for larger loans on real
  estate, equipment, or other big purchases,
  collateral like personal assets, equipment, or
  property will help secure the loan.

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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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