A small business loan is a type ofcommercial financingqualified businesses can get from traditional banks, online lenders and credit unions. Businesses can use funds to cover the costs that come with operating and growing a business, including everything from working capital and equipment purchases to larger purchases like real estate.
People also ask
What is a small business loan and how does it work?
A business loan is any type of financing that鈥檚 used to fund business expenses 鈥?from paying staff wages to purchasing inventory. Available through banks, credit unions and online lenders, your business typically needs to be at least six months old and bring in over $50,000 a year in revenue to qualify.
What’s the best way to get a small business loan?
For instance, if you have an established business and a high credit score, your best bet is probably a bank loan or SBA loan. However, if you have a new business or lower-than-average credit, you’ll have to look for alternatives, such as online lenders
How does the Small Business Administration work with lenders?
SBA works with lenders to provide loans to small businesses. The agency doesn鈥檛 lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions.
Are SBA microloans a good option for business owners?
That makes SBA microloans a good funding option for business owners that don’t need a hefty loan to get things done. Of course, Fundera lets you apply for other types of business loans too鈥昦nd even personal loans that you can use for business.