When you decide you need to take out a small business loan, you’ll find there will initially seem like an overwhelming number of options to consider. It’s helpful to narrow the list by identifying what you have, what you need, repayment schedule, the customer service level you’ll need or want, and acceptable terms and costs.
Are you eligible for a small business loan?
There is most likely a loan available for you, and the loan you choose will depend on your credit score, the number of years in business, and annual revenue. These three factors alone will help narrow the field for your loan options. Learn more about loan eligibility here.
What type of loan are you looking for?
Different types of loans have different qualification requirements and offer different rates and terms. You might need a loan to buy inventory, real estate, and/or equipment, or maybe you only need some working capital. Common loans include credit cards, lines of credit, equipment financing, cash advances, term loans, real estate loans, microloans, and personal loans for business use. Do your research and decide what kind of loan you need to start or to grow your small business.
Best small business loans of 2020
USNews.com and Yahoo! finance recently listed some of the best small business loans of 2020 in several varying categories. Hopefully, this will help you decide which one might be best for you.
For Borrowers with FICO Credit Scores as Low As 530
There are options for businesses that have been operational for at least six months and have an annual revenue of at least $100,000. Loan products might include term loans, credit, and invoice financing with loan amounts of $5000 – $5 million, loan terms of 6 – 12 months for lines of credit and for term loans, and no origination fee.
Loans Requiring No Collateral
If you are looking for a loan that requires no collateral, There are fixed-rate terms, lines of credit with fixed interest rates, and loan amounts of $5000 – $500,000 with no origination fee. Lenders may require your business to have been operational for at least one year, a FICO credit score of at least 600, and a minimum annual revenue of $100,000.
Loan Amounts Up to $1 Million
For businesses looking to borrow up to $1 million, there are options. Choose from several types of loans including term loans (3 months – 5 years), lines of credit, invoice factoring, merchant cash advances, and more. With available loan amounts of $5000 – $1 million, lenders will likely require your business to have been operational for at least 3-6 months.
Online Loans and Lines of Credit Under $100,000
With nearly 1300 branches in the US, TD Bank offers SBA-backed loans (7(a), 504, express loans), lines of credit, commercial mortgage loans, equipment loans, and more.
Loans with a Low APR
With good credit, businesses can find small business loans with a starting APR as low as 4.99%. In addition to the low APR, benefits to qualified buyers often include loan amounts up to $500,000, access to funds in as few as three business days, fixed monthly payments, and no early payment penalty.
Loans with Easy Approval
Some lenders offer small business loans that are relatively easy to get and don’t require a minimum credit score or minimum revenue. In addition, you’ll find many don’t have early payment penalties, they can improve your loan in minutes, and they offer lines of credit up to $100,000.
If you are denied a small business loan, there are other options. These options include getting a business credit card, taking out a personal loan, and applying for small business grants.
Ready to find your best loan options? Talk to one of our specialists today!