Small business owners have many options when it comes to small business lending. Here are four main types of business loans:
Term loans. These small business loan programs are typically for larger sums of money and have a repayment period of one to five years with an interest rate that’s usually fixed.
SBA loans. These government-backed loans are available through the Small Business Administration (SBA) and have repayment terms of seven to 25 years.
Invoice factoring. This type of small business loan uses your outstanding invoices as collateral. The lender gives you a portion of the invoice value upfront and the rest when your customer pays the invoice.
Microloans. These loans are for smaller amounts of money, usually less than $50,000. They typically have shorter repayment terms than other types of loans.