Small business loans can be hard to come by, especially for business owners who have recently opened their doors to the public or those who face credit history challenges.
Use the following list of best small business loans for any credit if you’re currently struggling with obtaining financing:
SBA loans are insured by the federal government and underwritten by private banks. They come with the longest repayment terms and offer low, affordable rates.
Business Lines of Credit
Business lines of credit are given to small business owners from banks. Lines of credit are a great alternative to traditional credit cards. Rates can vary up to 25 percent for less than perfect credit.
Merchant Cash Advance
Merchant cash advance is a service used mainly by those with poor credit histories. A percentage of a company’s credit card receipts are taken as payment for the loan, and rates run from 1.5 percent to 2 percent for cash advances.
While not very well known, invoice financing has proved to be a useful funding tool for many small businesses. The lender will loan the business a certain amount of money and use a future invoice as collateral for the loan. When the invoice is paid, the bank calls in payment for the loan. Rates can vary for this type of financing up to 3 percent per week.
Term loans are excellent options for businesses who need cash fast. Banks normally underwrite these loans for repayment terms as short as one to two weeks. Some banks will allow businesses to pay back this type of loan for a term of up to one year.
The type of loan you choose for your business will depend on your particular financial needs. Always carefully compare your options before making a final decision.