Small Business Loans with Business Line of Credit
Many aspirations – One solution!
You likely have a variety of objectives for your company’s growth as an entrepreneur or small business owner, such as opening an online store, gaining more clients, or surpassing your rivals. A small business loan, such as a business line of credit or other forms of capital, may be able to help with these financial requirements.
Benefits of a small business loan
Your company may benefit from financing choices like a small business loan or line of credit to get through trying times or expand even more during prosperous times. The following are some typical advantages of small company funding:
Keep control with small business lending:
If you operate with an equity partner (or co-owner), you can give up some control over your company and lose out on certain gains if you ever decide to sell it. You may keep total control of your company and any possible earnings with a small business loan.
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Avoid funding conflicts
Borrowing from friends and family can prove challenging. The family member may view themselves as a part-owner with the power to call the shots and make decisions. It can be awkward to mix familial and business relationships. Taking out a small business loan from an independent lender can help avoid these issues.
Protect your business financing
Business owners sometimes take out personal loans to fund their business. But by using financing options and loans specific for small businesses, you could help avoid complications that can come from mixing personal and business finances or credit.
Common uses for small business funding
- Purchase inventory and other business needs
- Equipment financing to invest in new equipment
- Smooth cash flow or cover payroll
- Offset unpaid customer invoices
- Hire more staff with working capital
- Launch a marketing campaign
Small business loan application and approval process
A small business loan application process can be completed in minutes, eliminating the time typically spent waiting in lines or filling out numerous forms. When business financing decisions are made in real time, small business owners can access their line of credit as soon as they’re approved. Additionally, applicants may be able to link multiple revenue-generating accounts such as eBay or PayPal, helping to ensure that they receive the most appropriate amount of small business funding.
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Types of small business loans
Lenders may offer different types of small business loans and financing to meet the diverse needs of small business owners.
Unsecured small business loans
Unsecured, or uncollateralized, small business loans can help support entrepreneurs in various financial situations. An unsecured loan offers quick, straightforward access to funding to help you grow your small business. These types of loans do not require a borrower to put up personal collateral, and you can free up your business credit cards and cash flow with an unsecured business loan.
Secured small business loans
Secured, or collateralized, small business loans may work best for business owners who don’t have good credit or who have collateral to back their loan. Offering collateral can make securing a loan easier and less expensive because the lender can take the collateral if a borrower stops making payments.
Industry-specific loans
If you are a business owner with industry-specific needs, like bulk orders of food or modern medical equipment, obtaining an industry-specific small business loan can help ensure that you have the small business funding to thrive within your industry.
Minority loans
Minority businesses are often underserved when it comes to small business financing from banks and alternative lenders. A comprehensive data gathering process allows lenders to offer small business funding to all types of business owners.
Small business loan FAQs
How do small business loans work?
Small business loans are often instalment loans, meaning you receive the entire loan amount upfront and repay the loan with a series of payments over the loan’s term. If you open a small business line of credit, you’ll have a maximum credit limit and can take a smaller draw, or loan, against the credit line. You’ll only pay interest on the amount you borrow.
Is a small business loan secured or unsecured?
Small business owners may be able to choose from both secured and unsecured loans. A secured loan may be easier to get and offer a lower interest rate, but you will need to have collateral to qualify. It may be harder to qualify for a small business loan without collateral, but you’re also taking on less risk.
What is required for a small business loan?
Small business loan requirements can vary depending on the lender and type of loan. Generally, lenders will consider both the owner’s and business’s credit and finances, the business plan, financial statements, and the business owner’s experience. Some lenders may also list more specific requirements. For example, they may only offer loans to businesses that are at least two years old.
What is the average interest rate for a small business loan?
The average interest rate for small business loans can vary widely depending on the lender and type of loan. For business instalment loans, the average APR can range anywhere from 3 percent to 60 percent, while for business lines of credit, the average APR can range from 8 percent to 80 percent.
Does Amex have business loans?
Yes Amex unsecured small business loans.
What is the limit on American Express business line of credit?
The limit on American Express line of credit is $2,000 to $250,000
