The benefits of business financing are that it immediately provides the business with cash, and the funding is relatively easier to obtain than a bank loan. You will most likely need quick access to funds as an entrepreneur or investor. And while you can always use your credit cards, there are times when a business loan might suit your needs best. Continue reading as we share 7 types of business loans that you should consider applying for.

Startup Loans

If you choose to go with a startup company loan, your company will need to be established for at least a year before you can apply. This could be a good option for young companies needing to borrow money immediately.

Short-Term Loans

If your company needs money quickly and you want payback terms of less than three years, a short-term business loan could be helpful. Qualifying companies can get funds from some online lenders in as little as one day.

SBA Loans

The United States Small Business Administration (SBA) offers loans to small businesses guaranteed by the federal government. This means that the SBA will repay a portion of the loan if a borrower defaults, reducing the level of risk for lenders.

Microloans

Microloans are a type of small business loan that offer low-interest rates and short repayment periods. They are an excellent way to get a business up and running if you’re short on capital or have trouble getting loans from traditional sources.

Term Loans

If you’re looking for small business financing options, you might want to consider term loans. Your company borrows money from a conventional bank, credit union, or online lender with a term loan. Then you pay back the borrowed funds over a specific time at a fixed interest rate.

Working Capital Loans

Companies that need help paying for ongoing operating expenses might be able to get the funds they need by applying for a working capital loan. Seasonal businesses and those that need access to finance while waiting for future revenue growth could benefit from these short-term business loans.

Commercial Real Estate Loans

Commercial real estate loans can be helpful for companies that need money to purchase a property. The property serves as collateral. If you default on the loan, the lender can seize control of the property and sell it to recover some of its investment.