We take a look at the best loans for small businesses.
Best Business Loans for Small Businesses
Top Business Loans for Small Businesses — FAQs
What is a business loan?
Business loans are offered to businesses of various sizes, by a bank or other lender, in order to it she was objectives. You may take out a business loan to release new products and services, expand operations or acquire new assets and equipment.
How are business loans structured?
Here are a few common forms of business loans:
Fixed term — this is where the loan is repaid in a single lump sum, once the contract is up — this term is pre-agreed between you and the lender and if you do not honour it then the interest rate can skyrocket.
Variable term — where you repay the loan steadily throughout the length of its term — you with a lender agree beforehand at an interest rate, although this may increase.
Equity-financed — these are specific loans for funding one of the business’s equities — once the loan is repaid, the equity piece is given back to the business.
What types of small business loans exist?
Equipment Loan: this is what it sounds like — businesses are given alone for buying equipment, for instance, telecommunications, a truck or a computer. Repayments will happen according to a fixed number of payments per year, monthly or in a lump sum period.
Trade Secured Loan: these kinds of loans are secured by specific assets, such as real estate.
Bridge Loans: these are used to help a struggling company stay afloat while getting its finances in order. Bridge loans are typically short-term, less than a year.
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