15 Best Business Loans To Help You Get Ahead In 2020
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| Best Business Loans |
1. Introduction
As a business owner, you understand that taking out a loan is sometimes necessary to help your business grow. But with so many different types of loans available, it can be hard to know which one is right for you.
To help you make the best decision for your business, we’ve put together a list of 15 of the best business loans available in 2020. We’ve also included a brief overview of each loan and what it can be used for.
2. The Best Business Loans in 2023
2. The Best Business Loans in 2021
As the business environment continues to rapidly evolve, so too does the financing landscape. The best business loans in 2021 are designed to provide business owners with the resources, flexibility, and funding options they need to succeed in today’s competitive market.
Here are the 15 best business loans of 2021:
1. SBA loans: These are government-backed loans that are typically offered through banks, online financial lenders, or credit unions. SBA loans offer flexible repayment terms and can be used for a variety of business-related expenses.
2. Bank loans: Bank loans are usually available through larger, more established banks and can offer the best rates and terms. They are generally more difficult to obtain than other types of loans, but you can use them for a variety of business-related expenses.
3. Merchant cash advances: These are short-term loans that are repaid with a percentage of your daily credit card sales. They don’t require a personal guarantee and can provide a quick solution to short-term cash flow needs.
4. Equipment financing: Equipment financing loans can be used to purchase new or used business equipment that’s necessary for day-to-day operations. These loans typically have lower interest rates, and they can span anywhere from 1-7 years.
5. Business lines of credit: Business lines of credit are designed to provide business owners
- SBA 7(a) Loan
The U.S. Small Business Administration (SBA) 7(a) Loan is the SBA’s most popular loan program. It provides funding to businesses looking to acquire additional capital, which can be used for start-up expenses, working capital, furniture, fixtures, equipment, and more.
The SBA 7(a) loan is guaranteed by the SBA and is secured by the borrower’s creditworthiness. Loan amounts range from up to $2 million for general purposes and can also be used for real estate purchases and improvements, or refinancing of existing debt with high interest rates.
The repayment term varies depending on the loan purpose but can range from 5 to 25 years. The interest rates are also adjustable, but they are usually lower than conventional loans. The maximum rate is usually between 6.5% and 10%; the maturity period is 25 years for real estate projects and 7 years for working capital-related expenses.
The SBA 7(a) loan is an attractive option for small businesses because the loan does not require a personal guarantee, the interest rates are lower than for conventional loans, and the SBA guarantees up to 75% of the loan. The SBA 7(a) loan is also beneficial for businesses that have difficulty qualifying for traditional bank loans due to their business size or credit history.
- CDC/504 Loan
The CDC/504 loan (also known as the Certified Development Co/504 loan) is a long-term financing option aimed at helping businesses obtain real estate, equipment, and working capital. It is a government-backed loan offered in collaboration with the SBA and local economic development organizations.
The CDC/504 loan has several features that make it attractive to businesses. First, the program offers long-term, fixed-rate financing with lower monthly payments than conventional loans can provide. This makes it easier for small businesses to manage their cash flow more effectively.
Additionally, the CDC/504 loan program is backed by the SBA, eliminating the need for personal collateral. As such, businesses can access funds without risking their homes or other personal assets.
The CDC/504 loan is available to small businesses that meet eligibility requirements. Eligible businesses must be considered a "small business" under applicable SBA requirements, must have a tangible net worth of not more than $15 million, and have an average net income of not more than $5 million over the previous two years.
The requirements for loan approval are much more strict than for conventional loans, but as such, the opportunities for long-term, low-cost financing can be significant.
- SBA 504 “Smart Max”
The SBA 504 Smart Max loan is an SBA-backed loan offered through the CDC/504 loan program that provides businesses with the opportunity to receive up to $500,000 in SBA-guaranteed funding for the purchase of real estate, equipment, and other operational needs. As compared to conventional small business loans, the SBA 504 Smart Max loan offers businesses long-term, low-interest financing with potentially even lower monthly payments.
The SBA 504 Smart Max loan has several key benefits, including:
- Financing up to $500,000, which can be used for a variety of business expansion needs such as buying a building, purchasing equipment, or purchasing inventory
- Long-term, fixed-interest financing with potentially lower monthly payments than conventional loans
- Reduced eligibility requirements, which allow more businesses to qualify
- No required collateral, as the SBA guarantee is sufficient
- Fast approval and closing times
The SBA 504 Smart Max is a great option for businesses that need access to capital to grow and expand their businesses. But as with any loan, it is important to understand the terms and conditions of the loan before committing to it. Make sure to read the loan documents carefully and seek the help of experts before signing.
- SBA CAPLines
The SBA CAPLines program provides businesses with multiple smaller line of credit options for working capital needs to grow a business. Financing up to $5 million is available for small business owners, making it a great option for business expansion needs.
The SBA CAPLines program includes several lines of credit such as the:
- SBA CAPLines Export Working Capital Line of Credit: This credit line offers up to $5 million in financing, and it helps businesses with the export of goods
- SBA CAPLines Contract Line of Credit: This credit line offers up to $2 million in financing to help businesses working on government contracts
- SBA CAPLines Seasonal Line of Credit: This credit line offers up to $500,000 in financing and it helps businesses with their seasonal working capital needs
The SBA CAPLines program also offers guaranty loans that can be used for a multitude of needs, including working capital, equipment purchases, real estate purchases, and more. The loan amounts vary from $25,000 to $5 million, and the term of the loan can range from one to ten years.
The SBA CAPLines program is a great option for businesses that need access to capital to grow and expand their businesses. As with any loan, it is important to understand the terms and conditions of the loan before committing to it. Make sure to read the loan documents carefully and seek the help of experts before signing
- On Deck Term Loan
On Deck Term Loan is a term loan suitable for business owners who are looking for a way to pay off the existing debts, expand their company and finance the purchase of supplies. The loan term can range from three months up to 36 months, and the loan amount can range from $5,000 to $500,000.
The On Deck Term Loan is an ideal option for business owners who need a short-term loan to cover immediate expenses or cash flow gaps. On Deck loans are suitable for businesses of any size and business owners of any credit score. On Deck prides itself on its fast application and approval process; typically, you can receive the funds in one business day.
The On Deck Term Loan also offers an autopay option, in which the loan payments are automatically deducted from business bank accounts, saving the business owner time and money. On Deck also offers an online account dashboard where business owners can access and manage their accounts in real time.
The On Deck Term Loan is a great option for business owners who need some extra cash to expand their businesses or cover immediate expenses. On Deck loans are quickly processed and easily managed through the online dashboard. Apply for an On Deck Term Loan today and see what it can do for your business.
- Prosper Personal Loan
Prosper Personal Loan is an ideal loan solution for business owners looking to finance larger purchases or long-term projects. A Prosper Personal Loan comes with competitive interest rates and origination fees, depending on your creditworthiness. It also features fixed rates, long-term loan options and flexibility in loan amount.
The Prosper Personal Loan may be used to finance big projects such as business expansion or equipment purchases. It can also be used to consolidate debts or cover unexpected costs. You can borrow up to $35,000 which can be paid off from 12 to 60 months, depending on your loan term.
Prosper Personal Loan is available to borrowers with a minimum credit score of 640. You may not be eligible for a loan if you have any active collections, open short-term loans, have recently filed for bankruptcy or have gone through foreclosure.
Prosper Personal Loan is a great option for business owners who need financial assistance for larger projects in order to help their businesses grow. The application process is simple and once approved, you can receive the loan in as little as seven days.
- Loan Builder from PayPal
Loan Builder from PayPal is an online loan solution designed to help small business owners access short-term financing quickly. It offers an unsecured line of credit that gives you more control over your cash flow and enables you to make strategic business decisions.
The loan offers flexibility as you can customize the repayment terms to suit your needs such as a fixed amount due every week. The loan also features competitive rates with no hidden fees and no prepayment penalties.
Business owners can borrow up to $500,000, with an APR as low as 5.6%. LoanBuilder also boasts a fast and simple application process and once approved, you can receive the loan in as little as 24 hours.
The Loan Builder from PayPal is a great solution for business owners who need quick and flexible financing for their business. The competitive rates and terms make it an attractive option for small business owners looking for a short-term loan.
- Patriot Express Loan
Patriot Express Loan is a great option for business owners who need short-term financing to assist with the start-up or expansion of their business. This loan is specially designed to help veterans and/or their spouses to secure capital to launch or expand their business.
The loan is an SBA Express loan, which means the loan is guaranteed by the Small Business Administration. This loan takes advantage of a streamlined SBA loan processing and is fast and secure, with a processing time of 36 hours or less. The loan offers attractive terms with a maximum loan amount of $500,000 and a low APR, depending on factors such as creditworthiness and the amount you need for your business.
The Patriot Express Loan also has a maximum repayment term of 7-year and a flexible repayment period. So, if you are a veteran or the spouse of a veteran planning to start or expand your business, this loan is an excellent option for you.
- Kabbage
Kabbage is another great loan option for businesses seeking access to capital. It does not require any collateral, so it is perfect for small businesses with limited resources. Kabbage also offers a flexible repayment schedule with a maximum loan term of 12 months; you can choose to repay the loan on a monthly, weekly, or even daily basis.
Kabbage also allows you to get a loan in as little as seven minutes. It is a fast and easy process that can put cash in your pocket quickly. This can be especially helpful if your business has an urgent need for funds.
Kabbage’s loans start from $500 and go up to $250,000. The annual percentage rate (APR) starts from 1.5% and up to 10%. The APR for Kabbage loans depends on several factors including how long you’ve been in business, revenue and transaction history, credit score, and more.
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