An SBA loan is a long-term, low-interest small business loan partially guaranteed by the government.
Under the U.S. Small Business Administration’s various SBA loan programs, you can borrow money for any business purpose, including working capital, purchasing inventory or equipment, refinancing other business debt, buying real estate, or even funding the acquisition of another business.
Small Business Loans
Alternative lending has filled a gap left by risk-averse banks which lend primarily to the most creditworthy small businesses, and cash advance lenders that typically thrive on subprime candidates.
These lenders offer key advantages over a low-cost SBA loan. In addition to speed, the requirements are less stringent, and the application process is faster and easier. Alternative lenders are more flexible than banks when it comes to loan approval and repayment schedules and often provide cash much quicker than traditional banks can.
Since these types of business loans tend to be riskier for the lender, the average interest rates are higher than traditional bank loans. However, many small business owners would not be able to get financing for their businesses without the help of alternative loans.
Unsecured Startup Loans
Using a personal loan to start a business is becoming more common, simply because startups and low-revenue business don’t have a lot of other options. For many entrepreneurs, getting that first infusion of capital can seem like a major hurdle. We work directly with the best banks, credit unions, and alternative lenders that offer personal loans that you can use to start, build, or grow your business.
Ready to get started with one of these business funding tools? Have some questions for us? Give the credit experts at NCH a call today at 1-800-508-1729.