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Discover How Small Business Loans Work

Looking for financial support to grow your business or manage unexpected challenges? A small business loan could be the solution. Learn how small business loans work, explore various loan types, and understand the application process to unlock funding tailored to your business needs. Empower your growth journey with the right financial tools and strategies.<br>

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Discover How Small Business Loans Work

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  1. Discover How Small Business Loans Work

  2. Types of Small Business Loans There are many types of small business loans, ranging from the type of lender to the purpose of the loan. Each has varying repayment terms, interest rates, repayment periods, and more. These are some of the most common small business financing types.

  3. SBA Loans • SBA loans are loans that are partially backed by the U.S. Small Business Administration (SBA). SBA backing makes the loans safer for SBA lenders and, therefore, cheaper for qualified borrowers. Some requirements include: • Your small business has unsuccessfully sought other financing options. • The business is for-profit.

  4. Term Loans Term loans are just like they sound. Banks, credit unions, and online lenders offer businesses a variety of term loans in the form of lump sum payments. Term loans can be used for a variety of purposes and may have repayment schedules of several years with fixed rates. Additionally, you can sometimes get low interest rates and favorable terms on bank loans for your small businesses.

  5. Short-Term Loans If you need to access a lot of capital quickly for your small business, short-term loans can help. For example, if you are running a small trucking business, one of your trucks might have a major part break that needs to be replaced quickly.

  6. Eligibility Requirements for Small Business Loans • Different lenders and loans have different eligibility requirements. Nonetheless, these are the most common qualifying considerations that lenders take into account. • Credit score: Your personal credit score and business credit score may be factored into your lender’s decision-making. Typically, you’ll want a credit score of at least 600.

  7. Business revenue: Since your small business is trying to get a loan, your annual revenue will play a role in their decision. The higher your revenue, the less risky your business. • Collateral: Especially for larger loans on real estate, equipment, or other big purchases, collateral like personal assets, equipment, or property will help secure the loan.

  8. Why Choose Biz2Credit? • Trusted partner for franchise funding • Biz2Credit was founded in 2007 and has provided more than $10 billion in loans. • Dedicated support team • Tailored financing solutions

  9. Thank You

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