logo

What Are Different Types Of Small Business Loans - Bryant Business

josh bryant • Mar 26, 2024

Starting or expanding a small business is an exciting journey, but it often requires capital that you may not have on hand. Fortunately, various types of small business loans can provide the financial support you need. Understanding the options available can help you make an informed decision that aligns with your business goals and financial situation. Here are some of the most common types of small business loans:

A wooden block with the word business loan written on it.
1. Term Loans
Term loans are what most people think of when they hear "business loan." They provide a lump sum of cash upfront, which is then repaid with interest over a predetermined period, or term. Term loans are ideal for funding specific, one-time investments such as purchasing equipment or expanding operations.

2. SBA Loans
The U.S. Small Business Administration (SBA) offers several loan programs to help small businesses. SBA loans are known for their favorable terms, including lower down payments, flexible overhead requirements, and no collateral for some loans. However, the application process can be lengthy and requires a lot of documentation.

3. Business Lines of Credit
Unlike a term loan, which provides a lump sum of cash, a business line of credit offers access to funds up to a certain limit that you can draw from as needed. This makes it a flexible option for managing cash flow, handling unexpected expenses, or financing short-term needs without committing to a long-term loan.

4. Equipment Financing
Equipment financing is specifically designed to fund the purchase of new or used equipment. This type of loan is secured by the equipment itself, which means the equipment serves as collateral. Equipment financing can cover up to 100% of the cost, making it easier to invest in high-quality machinery or vehicles for your business.

5. Merchant Cash Advances
A merchant cash advance (MCA) provides a quick infusion of cash in exchange for a portion of your future credit card sales. MCAs are known for their high approval rates and fast funding times, but they can also come with high costs and daily or weekly repayment terms, making them less ideal for some businesses.

6. Invoice Financing
Invoice financing allows businesses to borrow money against the amounts due from customers, providing immediate working capital to improve cash flow. This can be particularly useful for businesses with long invoice cycles or those that need to free up trapped cash.

7. Microloans
Microloans are small loans, typically less than $50,000, designed to help startups and small businesses with limited access to traditional banking services. These loans can be used for working capital, inventory, supplies, furniture, fixtures, machinery, or equipment.

8. Commercial Real Estate Loans
These loans are used to purchase or renovate commercial property. Commercial real estate loans are typically secured by the property being purchased and can offer longer repayment terms.

Conclusion
Choosing the right type of small business loan depends on your business needs, financial health, and long-term goals. Whether you're looking to manage cash flow, purchase equipment, or expand your operations, there's a financing option out there for you. Carefully consider the pros and cons of each type of loan and consult with a financial advisor to make the best choice for your business.

Want To Apply For A Small Business Loan?

Fill in your info to see if you are pre-approved for a loan offer.

This will not pull your credit, this determines if you are eligible for a loan offer based on our qualifications. If you are pre-approved you will be asked to finish your loan application (takes about 5 minutes).

Sign up to our newsletter

With us, qualification is easy! Do you qualify?

Time In Business

We are looking for businesses that have been open 4+ months. 

Sales Volume

You will need at least $10k in monthly sales.

Low Credit Score Is Okay

We don't require perfect credit, you just need a 500+ FICO score. 

Business Location

As long as your business is located in the U.S. or Canada, we can help. 

Apply Now

Small businesses need funding that is accessible, reliable, and competitive. We are experts in connecting your small business with the best lenders that will help you grow and sustain your business. 

Two women are sitting at a table looking at a laptop computer.

Benefits of Choosing Bryant Business Loans

We are the most competitive because we work with every reputable lending source. Many online lenders will provide an over-abundance of options that you must sift through. At BBL we believe that you shouldn't have to do all of the heavy lifting; when you apply for a loan we assign you a funding expert to help you obtain the best funding option for your business.

Features
✓ Easily Access Up To $2m ✓ Customized Terms of 3-24 Months
✓ No Collateral Required ✓ Fixed Payments That Blend In To Your Cash Flow
✓ Approve To Fund In As Little As 24 Hours ✓ Simple Presentation Of The Cost Of The Loan
Apply Now
A sign in a window that says `` now hiring ''.

How To Use A Business Loan To Hire Employees - Bryant Business

By josh bryant • 28 Mar, 2024
Using a business loan to hire employees can be a strategic move for growth-oriented small business owners.
A man is sitting at a desk looking at a computer screen.

How To Use Small Business Financing To Cover Payroll - Bryant Business

By josh bryant • 28 Mar, 2024
Using financing to cover payroll is a strategic decision that can support your business in critical times.
A woman is standing in front of a chalkboard holding a sign that says `` buy local ''.

How to Apply for and Get a Small Business Loan in 7 Steps - Bryant Business

By josh bryant • 26 Mar, 2024
Applying for a small business loan might seem complex, but breaking it down into manageable steps can make the process more approachable.
Share by: