![]() For example, through Funding Circle's network of lending partners, this amount is between $5,000 and $500,000. The advanced amount, which can be a minimum loan amount of $2,500 to a maximum loan amount of $400,000 is determined by the issuer and based on your average monthly credit card sales. Instead, they're a cash advance against your future credit card revenue delivered to you in a lump-sum. Merchant cash advances (MCAs) aren't exactly small business loans. For instance, one could use a small business term loan to expand to a new location, replenish inventory, or hire new employees. Business owners have flexibility with regards to how they can use the funds. This is especially true when you consider that you may be repaying the loan over a number of years. One of the perks of a term loan is that the interest rate, which could be either fixed or variable, tends to be competitive and lower than other types of small business financing. Term loans are typically secured by a lien on your business assets (a right for the lender to seize those assets if you default on the loan) and may require a personal guarantee, which means your personal assets may be liable if your business defaults on the loan. Repayment periods can vary from short term (12 months or less) to medium term (1 -3 years) to long term (3+ years). Term loans are delivered via a lump-sum of capital from a lender and paid off in fixed installments according to a schedule until you pay back the principal plus any applicable interest (and any fees). If you've ever taken out a mortgage or financed a vehicle purchase, then you're probably familiar with the mechanics of a term loan. Term loans are one of the most popular types of small business loans. Learn more about applying for SBA loans through Funding Circle. Use the proceeds for working capital, refinancing debt, making major purchases, and more. Your business should have an operating history of at least three years to qualify. 1 Payments are made monthly and you won't face any fees for early repayment. If you apply through Funding Circle's network of SBA lenders, you'll see that the interest rate is currently set at Prime + 2.75% (currently 9%). The SBA’s 7(a) loan program is attractive to many small business owners for its below-market interest rate. ![]() Keep in mind, a 10 to 30 percent down payment is usually required for these types of loans. ![]() This way, you can borrow anywhere between $20,000 and $5 million for as long as a 10-year term. ![]() While the loan is partially guaranteed by the Small Business Administration, the financing is delivered through an approved SBA lender. The 7(a) is the SBA's most widely used loan program. SBA 7(a) Loans - Small Business Administration Loans ![]()
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