A business loan can help you start, support or expand your business. Borrowing may be a good option even if you have cash on hand because of the benefits that loans for small business provide. As Bank of America notes, a loan can finance the purchase of inventory or business equipment. Small business loans are also useful for purchasing owner-occupied real estate and for financing accounts receivables, according to the Small Business Administration.
Two types of business financing exist. A small business line of credit is for short-term seasonal or cyclical cash flow or to cover your business needs during emergencies, notes Bank of America. You take draws against your line of credit as the need arises, and make payments only on the outstanding balance. Small business loans are meant for longer-term financing and purchasing. Loans are issued in one lump sum. Most have predictable fixed monthly payments.
The Small Business Administration helps business owners obtain financing by guaranteeing up to 75 percent of their loan amounts against borrower default. SBA-guaranteed financing includes several varieties of credit lines and loans that allow borrowers to finance closing costs and customize their repayment schedules.
The SBA also has a number of resources for business owners, including information about minority small business loans and loans that benefit those with limited access to traditional financing. These programs include ACCION USA, the Indian Loan Guaranty and Interest Subsidy Program and the Delaware Access Program. The SBA also serves as a clearing house for information about federal programs that support minority business. The SBA Office of Native American Affairs, the Minority Business Development Agency and the HubZone Program are just a few sources of assistance for minority small business owners.
For more information, go to Small Business Loan at http://www.unsecuredbizloan.com/small-business-loan/