The small business community is alive and well in the U.S. Since 1965, it has contributed 65% of all new jobs, and as many as a quarter manage to stay open for 15 years or more. In many cases, small business owners have long been passionate about entrepreneurship. In fact, about 42% launched their first business ventures during childhood. Surely, it is the committed business owners and their employees who keep American small businesses so successful, but they don’t do it without the help of small business lenders and financing companies.
Small business loans come in many forms, each of which is designed to help businesses in particular situations. Here, we’ll look at a few of the most common.
- Term Loans are among the most popular of all small business loans. They can be used for any business purpose, like the purchase of equipment, office expansion, or acquisition of commercial vehicles. Repayment terms are generally flexible, and amounts vary, mainly based on availability of collateral.
- Business Equipment Loans can be used to upgrade or purchase new equipment without dipping into business working capital. As a result, they’re great for avoiding the cash flow problems that sometimes come along with major purchases. Business equipment loans are often used for the purchase of new and used computers, telephone systems, medical equipment, and construction machinery.
- Business Lines of Credit provide all the flexibility businesses need to make necessary purchases at any time. Funds can be accessed at the purchaser’s convenience and used to manage cash flow, purchase inventory, finance accounts receivable, expand a business, cover unexpected expenses, and meet seasonal cash needs. Lines of credit are usually secured by business assets.
Loans are essential to the success of the small business community, and the wide range of loan types available makes it possible for almost any company to find one that meets its needs. What kind of loan could help your small business grow? Get in touch with a lender to find out!